oct 29, 1929 - The Great Depression began
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The Great Depression was the result of Americans putting too much money into stocks and the economy slowly reaching a point where it was doomed to crash. During the 1920s, Americans experienced a time of great prosperity and wealth. People were so well-off and happy-go-lucky that they put a lot of money into stocks. Eventually, it got to the point where stock prices were rising so fast and so high that there was no imaginable way that the banks could ever pay that much money. Basically, they were selling for more than they could pay back. This resulted in a stock market crash as nervous investors began withdrawing their money from the banks and selling their stocks all at once. Banks started crashing and outraged Americans began to realize that they had lost their money. Millions of Americans were cast into unemployment and most lost their homes and cars. The vast majority of Americans were living in ultimate poverty. This resulted in a ten year depression that had periods of low points and high points within itself. The final effect of The Great Depression was distrust. No one trusted the banks or the government after the depression was over. The Great Depression really taught the federal government a lesson as they realized the mandatory need to place restrictions on the banks. Laissez-faire leadership was not going to work anymore, and in the end America came out with a stronger banking system and a lesson to learn from.
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