After ten years of prosperity the United States were plunged into despair 10/29/1929. That day there was a stock market crash, called "Black Tuesday". There has been a collapse in share prices. In a panic occurred, most market participants tried to implement actions that were in their hands. But there were hardly any buyers. As a result, the stock market crash were forced to close several prominent banks.
The chain behind them followed by others, because arose unusual demand for cash. There was a sharp decrease in consumer demand and as a consequence of the bankruptcy of many enterprises, and unemployment. Unlike other years, these events had a heavy blow to U.S. farmers. Typically, they borrowed money for the realization of future crops. Now they had nowhere to get a loan. Also for several years was a severe drought. The wind dried the top layers of soil and raise up a huge cloud dust.
The set of the unemployed across the country moved in search of at least some work. Basically, hitchhike or freight trains. There have been cases that claimed one vacancy to thousands of people. Who does not could get a job, often stayed near the major cities in slums called "village Hoover" on behalf of the President of the United States at this time. In 1932, Roosevelt came to power and announced the laying of a new course of development of Americas. First of all, he closed all banks and gave them the right to open only if they stabilize their situation. Launched the national program of building new roads, work on farmland, and others. In times of the Great Depression, most Americans thought of Roosevelt a national hero. However, it should be noted that in modern research, "New Deal" Roosevelt braked U.S. withdrawal from the crisis. Real output stagnation of the economy came to the United States with the beginning of World War II and the Japanese attack on Pearl Harbor. Army needed to adopt and everything connected with the conduct of hostilities. This has made recovery in the economy. Additional material on the subject:
Tags: Banks and credit, financial
