Numerous accept mistakenly that the share trading system crash that happened on Black Tuesday, October 29, 1929 is one and the same with the Great Depression. Indeed, it was one of the real causes that prompted the Great Depression. Two months after the first crash in October, stockholders had lost more than $40 billion dollars. Despite the fact that stocks started to recapture some of its misfortunes, before the end of 1930, it simply was insufficient and America genuinely entered what is known as the Great Depression.
2. Bank Failures
All through the 1930s more than 9,000 banks fizzled. Bank stores were uninsured and in this manner as banks fizzled individuals essentially lost their reserve funds. Surviving banks, uncertain of the monetary circumstance and concerned for their own particular survival, quit being as eager to make new advances. This exacerbated the circumstance prompting less and less consumptions.