The Stock Market was Panicy for the past few days, many investors losing billions worth in stocks, and the DOW fell by around 80 points, yet things seemed to stabilized. Then on Tuesday, everything fell. From Thursday to Tuesday 26 Billion dollars worth of stock value were lost, so many had to sell what they had to pay debts, and most could not. Due to this banks collapsed, and many savings, and due to lack of credit Businesses, were wept out.
Possible Causes- While many debate the exact cause of the crash here are some possible factors and when they occurred.
Many think the market was to optimistic
Stock Prices were widely inflated
Credit was extremely easy to come by
A intrest hike of one percent occrured, causing a lack of stability
Inter National Effects
Overall, the Crash in American Economic Power had riveting Financial effects felt around the Globe.
Germany- Due to essential American loans were resended, so a massive financal crisis ensuded, partily leading to the demise of the Weimar Republic
Japan-Due to trade releance on The United States, a already resourse starved nation plummeted economically, thus expansionist retoric became more intertwined in Government Policy