There are many different opinions about the causes for the downturn, such as the fall series of the Bank or the stock market, was marked by "Black Thursday" October 29, 1929, or the deterioration of us-international transaction tax increase. However, public opinion was much consensus economists, including the current FED Chairman, Ben Bernanke, he is due to supply factors of the source of money as well as the FED's mistakes.Accordingly, in the 1920s, excessive money supply expansion has led to the development of the booming but lack of financial sustainability. The FED recognizes the risks and make monetary tightening policy is too late to prevent a recession. Moreover, when the big banks collapse marks the FED did not actively aid, from which to create the effect chain collapse in the banking industry, leading to sudden cash resources are depleted. The result is that many companies go bankrupt because of lack of capital, manufacturing activity, consumer business stalled, rampant unemployment caused great impact to the US economy and the world.
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