Warning Signs of the Great Depression

Question 1

Warning Signs of the Great Depression

Answer 1

Uneven Prosperity (rich getting richer, poor getting poorer)
Lack of Savings (80% of families had no savings)
Personal Debt (more Americans buying on credit)
Buying on the Margin (buying stock for half the price and paying rest when money comes in)
Speculation (get rich quick schemes)
Troubles for Farmers (crop prices falling)
Overproduction (no business regulations  warehouses overstocked and no one to sell to)

Question 2

Ripple Effect of the Stock Market Crash

Answer 2

Market investors lose savings and cannot pay loans 
Banks who invested in high risk companies cannot get loans back 
Banks demand money from consumer borrowers 
Borrowers do not have the money to pay banks 
American panic at thought of banks running out of money 
Everyone goes to the bank to get their money 
Banks run out of money and fail 
Savings accounts are wiped out with no insurance 
Companies who lost money have to cut production and jobs 
Rise in unemployment