Please answer the question in red below.
Causes of the Wallstreet Crash Of 1929
There were several reasons which caused the Wall Street crash of 1929. One of the causes is that the Stock Market overheated since the year 1924 to 1929 making the cost of the shares grow five times. The share costs grew beyond the companies appeal shares and an individual speculation reserved the over-inflated costs. Awkward prose Another reason was speculation. Around 600,000 people turned out to be speculators in the year 1929, and others borrowed 90 percent of the share worth to purchase the shares, looking forward to paying their loan back with the profit they made on the sale. Market speculation certainly had an effect when the downturn occurred. So what specific changes were implemented to prevent such a series of events from recurring in the future and having similar catastrophic results? Some organizations that did not channel investments promoted shares, for instance, one can be set up to improve the South American mine that has never existed, but individuals still purchased them since they hoped to make profits in bull markets (Thomas, 1979). Another reason was corruption. Awkward prose/word choice The Committee Senate began to look into the crash and discovered that corruption was involved and insider dealing among the brokers and banks. Panic was also another cause which led to the crash. In October 1929, almost 13 million of shares were traded in a panic making the costs crash. The banks attempted to support the market once more but later recognized it was hopeless and banned purchasing shares (Hiebert & Hiebert, 1970). Speculators also panicked hoping to get stuck with great loans and valueless shares. On the October of 1929, the market dropped once more when shares of 16 million were traded. What was the impact of the excessive loan amounts on now worthless shares? How did this “trickle-down” and eventually impact even those who were not personally invested in the stock market?