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Depression and the New Deal
Economists still do not agree about what caused the Great Depression, but it appears to be the result of several factors: bank policies, political decisions, historical factors, international concerns, excessive stock speculation, and a decade of prolonged fear for the American people.
It was easy to get credit from banks in the 1920's as the economy was booming.
There were numerous banks and many of them used depositors' funds to purchase stocks in the Stock Market, or speculated in their own stocks. Only approximately a third belonged to the Federal Reserve System. …
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