In the 1920's three pro-business presidents occupied the White House and U.S. businesses appeared to be doing well. The Stock Market was an indicator of this national prosperity. In reality under consumption was a becoming a problem and many products went unsold. Much purchasing was being done on credit and many stock purchases were made "on margin". Another indicator that things weren't as good as they seemed was that bank foreclosures were rising. In …
showed first 75 words of 2149 total

showed last 75 words of 2149 total
…part, to the intervention of the Federal Reserve unlike when they worsened the problem back during the Great Depression. According to Facts on File, "The worst economic losses occurred on Wall Street itself, where 15,000 jobs were lost in the financial industry." What this crash ultimately accomplished was to teach politicians that markets heed their words and actions carefully, reacting immediately when threatened. The crash initiated a new era of market discipline on bad economic policy.