Why was there a crash in 1929?

Question 1

When/Where did the crash happen?

Answer 1

24/10/1929 – 29/10/1929

Wall Street

Question 2

How did overproduction cause the crash?

Answer 2

If demand goes down, goods quickly start to be overproduced.
Leads to job losses.
Lack of consumerism after 1929.

Question 3

What was land speculation and how did this contribute to the crash?

Answer 3

Lack of infrastructure – left investors penniless.

In Florida – happened as early as 1926.

Question 4

What was the bull market and how did this contribute to the crash?

Answer 4

Period when share prices go up – bear market = shares to go down.
Hoover – “the mad orgy of speculation”.

Question 5

What were the weaknesses in the US banking system that precipitated the Wall Street Crash?

Answer 5

Lack of regulation – wildcat borrowing.

Banks unable to call back debts – leads to closures.