Essay by PaperNerd ContributorUniversity, Bachelor's August 2001

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The Great Depression Even though the great depression wasn't the only depression that the United Stated had gone through, it was the worse. The economy had grown larger than the government thought; though they made up a special agency of the problem at hand. Which was called, Federal Reserve Board, it was to prevent depressions and take care of the bank panic. Federal Reserve Board was suppose to be the loaner of the last resort for banks, it was going to help the banks prevent collapse, which formed the other depression.

In 1929 the government realized that it could not sustain its current policy, so they started to raise the interest rates. While that was being raised the stock market came crashing down, and set the banks in a panic. The banks had lent out all this money; people started to panic with the crashing of the stock market.

People flew to the banks to pull out all their money, yet to find out that the banks had given out I.O.U pretty much. People were upset at the out come of the biggest depression that the United States had to go through. People ended up losing there jobs, homes, and family's because of the Great Depression.

We could have prevented this by learning from all the other depressions and not letting our selves is foolish with the money. One that banks should had made sure that the government was going to be able to back the banks up. Two, with the banks just giving out (I.O.U) they should have thought of problems in the futures. Yet they were iggurant to think that things would be 100% fine, when there were already other depressions that had happen. That shows that people should really know the history of the United...