Topic > Causes of the stock market - 838

The collapse of the stock market in the United States of America (USA) cannot be attributed exclusively to the laissez-fair attitude of the government. There are numerous reasons why the collapse occurred and what caused the collapse. Although these reasons can be said to have been caused by the laissez-fair attitude, it was not the only reason for the collapse. The other factors also play an important role in the stock market crash and the Great Depression. The stock market crash can largely be attributed to speculation. During the Roaring Twenties, almost any man could buy shares on the stock market. This was due to the fact that he was able to get loans from the bank and use this money to buy shares, which was seen as an easy way to make money as many people did this and made money. This led to excessive speculation as stock prices rose higher and higher even though the company wasn't worth as much. This led professional investors to sell their shares and withdraw their loans. Because of this, investors who had speculated excessively had to sell their shares, which meant that thousands of worthless shares were on sale but there were buyers. Although it can be said that the government could have chosen to intervene but chose not to, due to its laissez-fair attitude, and prevented the collapse. You can't just blame the government because banks and other investors chose to lend to enable the collapse. Excessive speculation is another major factor in the stock market crash, so it cannot be said that the government's laissez-fair attitude is solely responsible. There are many other factors that add to excessive speculation and cause collapse. Some banks have chosen to buy shares in the middle of the paper. attitude. The stock market crash was due to many factors that accumulated and originated during the Roaring Twenties. There was a lot of excessive speculation that led to many people taking out loans and not being able to pay them back, including banks using up the money that had been deposited into them. This, as well as the laissez-fair attitude of governments, led to the collapse of the stock market. The laissez-fair attitude can not only be blamed for the collapse, but could perhaps be blamed for prolonging the Great Depression as no measures were taken to help people as they believed that businesses would help end the depression and would created jobs, but this did not happen and the depression lasted for many years.