Stock values decrease. Loans demand repayment

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Presentation transcript:

Stock values decrease. Loans demand repayment Default on European war debts and reparations How did the Great Depression happen? It’s complicated….. High Tariffs CRASH! Stock values decrease. Loans demand repayment Run on banks Stock values outgrow actual company values. People selloff stocks. Bank failures Overproduction Farm failures, bankruptcies, layoffs (unemployment) Under-consumption Buying on margin (loans) Post- war farm surplus, land shortages, technology Speculative stock investing, widening wealth gap, low interest rates

How did the Great Depression happen? It’s complicated….. CRASH!