Question

Why was credit from America bankers so essential to all the European powers can you explain what happened when that credit was that credit was suddenly cut after the stock market crash in 1929

Answer 1

The correct answer to this open question is the following.

Why was credit from American bankers so essential to all the European powers?

Credit from American bankers was so essential to all the European powers because that credit allowed European investors, businessmen, and governments to have money and used to support or improve the economic conditions of Europe. Part of that credit was still used to the recovery from World War I effects.

What happened when that credit was suddenly cut after the stock market crash in 1929 was that countries suffered because a crisis started as a consequence of the Great Depression in the United States.

Let's have in mind that countries had invested in many war bonds during World War I.

When the United States stock market crashed on October 29, 1929, this event represented the beginning of the Greta Depression, which not only affected the United States but European nations too.

It was one of the worst economic moments in the history of the world. Millions of people lost their jobs, many companies had to close, and banks went into bankruptcy. European countries were in debt due to the many expenditures during the war and the poverty and destruction that remained after it.