The+Great+Depression-sh

The Great Depression was mainly caused by a bull market. After a very prolonged bull market millions of people were invested in stocks. Most of them only payed a small amount of money instead of the full amount for the stock. The market would only continue to rise if people continuously bought stocks, but by 1929 the stock market was running out of customers. On October 21, 1929 the stock market crashed. The following week on October 29, which was named Black Tuesday, took an even steeper dive in the stocks. As the stock markets crashed, people wanted to get their money and the banks ran out of money. Many Americans lost their jobs due to the fact that the United States did not sell big amounts of goods abroad. President Hoover simply avoided the fact that the country was in depression. He did almost nothing to try and repair the countries economy. With millions of Americans out of jobs, the citizens were starving and looked to private organizations, such as the YMCA, for meals.Through out the country people lost their homes, and set up what were called Hoovervilles.Another part of the Depression was the Dust Bowl. When President Hoover's term was up, Franklin D. Rooservelt was then elected to office. President Rooservelt, right after being elected, went straight to work to try and fix our economies problems. He invented the New Deal. Rooservelt created organizations such as the FDIC and SEC to provide government insurance for banks deposits and to regulate stock markets and prevent fraud. He also created organizations such as AAA, CCC, PWA and CWA, which created jobs for millions of Americans. The New Deal had been a success!! The countries problems were far from over, but were on their way to coming out of The Great Depression.