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dem82 [27]
3 years ago
14

How did the global depression in the wake of the 1929 Stock Market Crash create a breeding ground for dictatorships?

History
1 answer:
Anna35 [415]3 years ago
4 0

Answer:

Many factors likely contributed to the collapse of the stock market. Among the more prominent causes were the period of rampant speculation (those who had bought stocks on margin not only lost the value of their investment, they also owed money to the entities that had granted the loans for the stock purchases), tightening of credit by the Federal Reserve (in August 1929 the discount rate was raised from 5 percent to 6 percent), the proliferation of holding companies and investment trusts (which tended to create debt), a multitude of large bank loans that could not be liquidated, and an economic recession that had begun earlier in the summer. I Hope This helps Please give me brainlyist if theres anything i didnt out dont hesitate to ask

Explanation:

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