Question

In 1929, the Great Depression began in the United States, caused mainly by the stock market crash. What was a major cause of the stock market crash?

Answer 1

Here i have an answer for you one of the major causes for the great depression was bank failures and a lot of people lost their money

Answer 2

According to the historians, what triggered the fall of the stock market were these nine factors interacting with each other under debt conditions (Obligation that a person has to pay or return a thing, usually money), and deflation (Situation of excess supply that can cause a generalized decrease in prices or an economic recession), to create the mechanics of boom and bust.

The chain of events proceeded as shown below:

1.- Liquidation of debt and forced sales.

2.- Reduction in the money supply because the bank debts were liquidated.

3.- A fall in asset price levels.

4.- An even greater fall in the total value of companies, precipitating bankruptcies.

5.- A fall in profits.

6.- A reduction in production, trade and employment.

7.- Pessimism and loss of confidence.

8.- Accumulation of money.

9.- A fall in nominal interest rates and a rise in interest rates adjusted for deflation.