On October 24th, 1929 the stock market took a plunge down by about 200 points


The Average Stock Value Fell By Nearly Half its Value
The Average Stock Value Fell By Nearly Half its Value


Because of the loss in stock, investors panicked and began to sell everything they had. Banks eventually lost money and people could not remove the money they had saved in the banks. They could not pay back any loans they had taken for what they bought, like their houses, the banks then took the houses in foreclosures.

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The country had relied too much on artificial money like credit and stocks. With the stock prices having dropped the way they did then people had lost major investments they needed, credit was no longer useful because of how often it was used before and how unreliable it was, the banks also no longer had the money to loan out to the citizens.

The stock market crash was one of the key problems leading to the Great Depression in the U.S. because it left so many people broke, unemployed and homeless.