List as many causes of the stock market crash as you can find.
Use your own words! list 5 causes 2 sentences each
Causes of the Stock Market Crash of 1929:
(3 minimum)
1. Over-speculation and excessive optimism: In the years leading up to the crash, stock prices had been rising rapidly, fueled by speculation and a widespread belief that the market would continue to soar indefinitely. This created an atmosphere of euphoria, leading many investors to buy stocks on margin, or with borrowed money, which increased the vulnerability of the market to a collapse.
2. Inadequate banking regulations: The financial system during the 1920s lacked sufficient oversight and regulations to prevent risky practices. Banks were able to invest a large portion of their deposits in the stock market, leading to a dangerous concentration of wealth and increased volatility. Additionally, the Federal Reserve's policies at the time contributed to an expansion of credit and excessive lending, further fueling the speculative bubble.
3. Economic inequality and stagnant wages: While the stock market was soaring, the majority of Americans were not experiencing the same level of prosperity. Wages remained stagnant for most workers during this time, leading to a growing divide between the rich and the poor. This unsustainable income disparity ultimately weakened the foundation of the economy and contributed to the eventual crash.