The collapse of the stock market have put the United States into recession. Consumption and investment suffered
direct effect. Stock prices fell make people feel worse off, worried about jobs and income
in the future to enter the consumer less. The significant decline in housing construction investments also contribute
to work as falling consumption. Bank "scrambling" bankruptcy: on the one hand due to speculative borrowers
unable to repay due to speculative stocks are no longer valid, on the one hand due to the panic of depositors
scrambling to withdraw deposits. Just a few months later, by 1930, the stock crisis turned into terrible
banking crisis. From 1931 to 1933 there were up to 9,000 banks failed. This of course contributes
part led companies do not have access to investment loans.
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