Great depression is the long recession in the world economy that occurred in 1929 and ended in the late 1930s. At the same time, the recession has spread to most countries in the West and other countries around the world. In fact, the Great Depression is a global economic crisis, and the term itself is usually used in relation to the United States of America.
At the time of the crisis, 1 per cent of Americans had super-high incomes, 42 per cent ‐ top-down. In 1929, about 100 large corporations controlled half of America ' s corporate finances, and the banking system was in a wild state of the whole banks often promised their depositors 4-5 per cent of their daily income.
Since the mid-1920s US Stock Market was entirely in the power of the " beans " players who are playing to raise equity rates. In 1923, the Dow Jones stock index was 99. In August 1929, it took off by 40 per cent and reached 380, and on 3 September the index reached a record of 381, 17, one of the reasons for this growth was the activity of exchange speculators.
The amount of savings that the U.S. people held in banks has grown sharply. Interest rates were then low, so bank loans were available to very many Americans who expected to settle them in the future. They borrowed bank credits to put that money in stock.
The state of industry seemed brilliant. Industry companies reported on profits and preferred to invest in new products. It encouraged stock players to actively buy their shares. In 1929, however, it became apparent that the shares did not provide a high level of dividends, and the forecast of profits of many of the issuers was overstated. Emiterate companies faced a decline in sales while their shares grew.
(this day went into history like Thursday(c) The New York Stock Exchange witnessed a dramatic decline in equity, which marked the beginning of the world ' s largest economic crisis in history.
The value of securities fell by 60 to 70 per cent, business activity declined sharply, and the gold standard for major world currencies was abolished.