The Great Depression Causes
THE REAL REASON WHY THE DEPRESSION OCCURRED
1. DEBT AND TARIFFS
Debt – check! Tariffs – ??
2. THE COLLAPSE OF CREDIT MARKETS
3. IRRATIONAL PESSIMISM, AND CRISIS OF CONFIDENCE
4. 20 YEARS OF TRADE WAR PRIOR TO THE CRASH OF 29
? No ? But we’ve got increased globalization, and that’s got to count for something. Are price wars the same as trade wars?
5. COLLAPSE OF THE COMMODITY MARKET
6. ENGLAND ABANDONING THE GOLD STANDARD
7. CONTRACTION OF THE REAL ECONOMY
A Side Note: The large short interest was badly pummeled and was driven to cover. Because of this whipsawing nature of the Great Depression stock market, even the short speculators had few large winners amongst their ranks.
Well, this was interesting.
I do not vouch for the accuracy of the above. Don’t panic, it’s all in your mind.