” Causes of the Stock Market Crash of 1929″ is an interesting essay written by John Kenneth Galbraith. The author suggests that there are three major causes of the stock market crash of 1929 and also examines in depth the policies and decisions which led to such a downfall. It is interesting to note that this era was the golden age for Wall Street investment, there were so many corporate mergers and acquisitions, and very little regulation. As a result, there was too much risk-taking on for the brokerage firms and other financial institutions and as a result, they were unable to provide adequate service to their clients.

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What Causes the Stock Market Crash of 1929

The author traces the beginnings of this crisis back to the New York Stock Exchange, which was set up after the Second World War to serve as an economic counterbalance for the United States Government Essay Wall Street. The NYSE became a closely guarded secret and this kept many brokers in the dark about what was happening in the markets. When the US Government took the view that they needed a reliable source of funding, they decided to centralize all the money in the form of bonds and share certificates and set up the exchanges. The problem was that because New York was the financial hub of the country, this meant that all the activity happened there and since then there has been a lot of insider trading. As well as helping to keep rates low, this has also contributed to the downfall of the stock market.

Final Words

” Causes of the Stock Market Crash of 1929″ does not offer an absolute definition of what the causes of the stock market crash were, but it does show why it happened and why it can happen again. There are of course many factors that might contribute to such a disaster, one of the most important being the enormous leverage that people now have available to them thanks to the growth of the internet and changes in the way that many people do their banking. Other contributing factors include the fact that too many people now own shares in too many companies and this limits their options and therefore their ability to achieve real success.

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