AMERICA 1920-1973: Bust, The Depression, Herbert Hoover



During the Boom, many people invested into the stock market and made a lot of money. It was thought to be a quick way to get rich. 60,000 new investors would borrow money from banks to buy shares. They would then sell them and would pay off the loan. Prices of shares rose at a massive rate because of the large amount of people buying them. The Wall Street Crash was the overproduction of goods which weakened businesses and caused stock prices to go down. Many investors had borrowed money which meant they couldn’t afford to lose it. The Crash led to a depression and banks lost a lot of money. In 1929, many banks failed and by 1930, over 1000 banks went bankrupt. The country started demanding money from Germany, who had been lending from them. Many people lost their


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