1. Signs of Weakness in the Economy
Railroads were on the decline.

2. Signs of Weakness in the Economy        
Signs of Weakness in the Economy
Clothing manufacturing on the decline.

3. Signs of Weakness in the Economy
Agriculture was in a down turn

4. Signs of Weakness in the Economy
Prices for industrial stocks doubled between May 1928 and Sept 1929

5. Signs of Weakness in the Economy
On Wednesday Oct 23, million shares of stock traded hands. Because of falling prices, $14,000,000,000 in value was lost in the stock market; 10 times the annual budget of the federal government at that time.

6. Signs of Weakness in the Economy
On October 29, 1929, known as Black Tuesday, the stock market totally collapsed.
Panic-stricken crowds milled around the Stock Exchange when the market crashed.

8. Signs of Weakness in the Economy
Sellers of stock rushed to sell with no one to buy. Prices fell even more. Banks called in loans on those who bought stock on margins.

9. Signs of Weakness in the Economy
Brokerage house customers flock to the financial district as news of the crash spread.

10. Signs of Weakness in the Economy
Panicked by the collapse of the market, customers of a bank in New Jersey race to to claim their deposits from the bank.

11. Signs of Weakness in the Economy
The crash led to untold bankrupties and business closures, causing many Americans to lose their jobs.

12. Great Depression Begins
A major cause of the great depression was over-production of goods.

13. Great Depression Begins
With prices rising faster than wages, (Inflation) people cut back on what they could buy.

14. Great Depression Begins
Housing and automobile sales were in decline also. There was no demand for these items.

15. Great Depression Begins
In 1925 housing starts peaked at 925,000
In 1928 Housing starts declined to 753,000
By 1933 housing starts plummeted to 93,000
This was a decline of nearly 1,000,000
houses in an 8 year span.

16. Great Depression Begins
Some economists theorized that those employed in the housing industry were creating a drag on the economy, continuing the downward spiral.

17. Great Depression Begins
To relieve the problem in 1932, Herbert Hoover signed the Federal Home Loan Bank Act
The Act failed to deliver the needed relief.

18. Great Depression Begins
A nationwide banking crisis also contributed to the Great Depression. Many bank loans were in default.