What caused the Great Depression - Abdul-samad Abiola U.S History II One of the major cause of the Great Depression was the stock market crash of

What caused the Great Depression - Abdul-samad Abiola U.S...

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Abdul-samad AbiolaU.S History IIOne of the major cause of the Great Depression was the stock market crash of 1925.Harry.J Carnpold and Harold C.Syrett explained what happened very clearly. In Document 4,line 4, “The additional money needed to cover the purchase was supplied by the broker,who obtained these funds from a bank with which he had deposited his customer’s stock as collateral”. This shows that the broker of the deal borrows money from the bank to use to purchase and might take long before its returned,the banking industry as a whole after the stock market crashed was going bankrupt due to not being able to carry the “bad debt” that was createdfrom using customer money to buy stock. Because the banks were out of money, they were unable to cover customer withdrawals from their bank, causing many bank customers to lose all of their savings. With the uncertainty of the future of the banking industry, many people
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