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Unformatted text preview: demand was invested in the stock market , therefore adding to complicating problems. Bank collapses in rural sections of the U.S. were also a contributing factor. Farmers that were already in deep debt watched as farm prices began to plummet while their interest rates were skyrocketing. Over mortgaged land and low crop prices resulted in defaults on mortgaged loans and then the failure of many banks through the country. Additionally larger banks failed to maintain adequate reserves on hand to pay customers, and were risking a great deal of funds on the stock market. The bank system was perfectly positioned to tumble like the remaining dice in the years leading up to the 1929 crash....
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This note was uploaded on 03/29/2010 for the course HIS125 9021314933 taught by Professor Doreenpauley during the Fall '09 term at University of Phoenix.
- Fall '09