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The Successes and Failures of the New Deal
In the 1920s, the economy of the United States was attaining new heights of prosperity as it emerged from World War I as a creditor nation with productivity and economic growth (Biles 5). During this time, speculation caused many to buy stocks with loaned money, and they used these stocks as collateral for buying more stocks. Loans from broker's went from under five million in mid 1928 to $850 million in 1929 ("Causes"). Because the stock market was based on barrowed money and false optimism, it was very unsteady. When the investors lost confidence, the stock market crashed in 1929. T…
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