A main cause of the Great Depression was overproduction. Factories and farms were producing more goods than the people could afford to buy. ... Prices for farm products also fell, as a result, farmers could not pay off bank loans and many lost their farms due to foreclosure.
The Great Depression effected the credit industry because it caused law makers to relax the lending laws and credit even more, which helped banks stay even more profitable. ... They relaxed the credit laws because of this which made it easier for banks to stay profitable, (this is also mentioned in lesson 01.05).
The stock market crash of 1929 – considered the worst economic event in world history – began on Thursday, October 24, 1929, with skittish investors trading a record 12.9 million shares. On October 28, dubbed “Black Monday,” the Dow Jones Industrial Average plunged nearly 13 percent.