Agricultural Recession
- Overproduction lowers prices.
- "Farmers have always been poor"
- First sign of the coming Depression.
Buying on Margin
- Borrowing money to buy stock in the hope that it will go up and you can repay the loan and collect the difference.
Overall:
- Dow Jones Industrial Average collapsed.
- Continued sell off took place until 1932 when the DJIA was 89% of its 1929 peak.
- Summary:
- Overproduction
- Stock Market
- Tariffs
- International Debt
- Weak European Economy
Summary
Because of an Agricultural Recession, people Buying on the Margin, and an overall failure in the American Economy, the USA slipped rapidly into a Recession. This is was caused the famous day known as Black Tuesday, and continued to hold the USA in a tough position until Roosevelt was able to assist in pulling them out.