Causes of the Great Depression1928 election: Democrat Alfred Smith: -1stCatholic to run for President-KKK campaigned hard against him because they did not want the Pope to tell him how to run the countryRepublican Herbert Hoover: -head of the Food Administration during WWI. -He was for prohibition, he was a Quaker.1920’s/Bull Market: All through the 1920’s, there was a bull market. Had a period of prosperity:-laissez faire treatment of Big Business-isolationism-people buying on credit (influence of the automobile)-The opposite was the bear market. Buying on Margin: small cash down payment with the stock broker paying the rest alongwith a commission and getting interest. -more people getting involved in the stock market - Federal Reserve was not raising interest rates which would cause people to save more and spend less.Margin call: broker demands that the investor repay the loan at once.-Made the investor very scared whenever the market took a dip.