Barclays Executive Summary

This damaged the economy and hurt millions. As a result, overproduction and underconsumption left a lot of business in debt and caused the Great

The company's stock would go down more and more because the company would lose money. Therefore, people would lose money and they would lose their homes and jobs. Also, bank failures happened and innocent people would lose money if they put their money in that bank. A lot of people became homeless because of this scenario. The Stock Market Crash had a significant impact on how Herbert Hoover’s presidency played out.

The fixed-rate loans were sold at a loss in order to balance withdrawals. That asset liability mismatch was identified as the primary cause of the savings and loan crisis. Jobs were lost and unemployment rose from around 7.5% to more than 10%. The recession caused a loss of 2.9 million jobs, representing a 3% drop in payroll employment.

In the Great Depression of 1932, the stock market crashed which caused a lot of Americans to try to sell their stock before the price got too low. For many of the Americans, they lost all their money and became very poor. Many banks shut down due to the lack of money they each contained. In order to fix this, a plan called, “The New Deal” that was created by FDR. The New Deal consisted of many new programs to promote money to the economy so it would be back in the same cycle it was before the Great Depression.

The United States boasted the largest economy of the world in the 1920s, but the glory was soon followed by an economic crisis that would devastate the country. The Great Depression was the longest economic downturn the United States had ever experienced and lasted from 1929 to 1939. While there is a lack of consensus on exactly how the Great Depression came to happen, overproduction was a leading factor, along with poor banking practices that eventually led to bank failures, ruining millions of families. The Smoot-Hawley Tariff also greatly contributed to the emergence of this tremendous recession, aggravating world trade, thus weakening economies even more.

Prices went sky-high, and high inflation only worsened the situation for many of the laborers. The first to blame was the Bank of the United States, which had stopped exchanging precious metals for banknotes. When it began to call its loans, people were unable to pay, leading to a devastating effect on the economy. The

This was a high risk high reward bargain that paid off in the end. Banks were making money off their mortgage loans they were selling off in synthetic CDO’s. These debts were actually worthless. When the housing market and Wall Street crashed, many lost their investments. These were meant to be safe investments but because of the actions of the banks, mortgage brokers and many other factors, millions lost everything.

The Great Depression The United States fell into a growing hole of financial problems, called The Great Depression. As a country, we became poor because of the stock market crashing. Millions of Americans were losing jobs, and the leader of our country was facing more problems by the second. “By the 1930’s over 13 million Americans lost their jobs. The United States lost so much money that incomes were reduced by 40%,” (Degrace).

The cause of inequality ranges from a series of mediums form social status to gender and even race. While education is caked with large portions of inequality, the biggest play it remains shrouded from the public eye is in the very core of our government itself. To be more specific there is a constant rising unjust distribution of taxation going on in the government taking place amongst those who make outrageously high amounts of money. Krugman informs us regarding hedge fund managers, and how they basically receive a “unconscionable tax break” that “ these managers- some of whom make more than a billion dollars a year get to have most of their earnings taxed at the capital gains rate, which is only 15 percent, even as other high earners pay a 35 percent rate,”(568). Blatant tax evasion occurring right at the core of our own government, and perhaps depicts perhaps the biggest example of inequality in our country today.

The Great Depression was caused by speculation and installment buying, income maldistribution, and overproduction because each of these factors combined made the economy worse before and after the stock market crash, which led to The Great Depression. Speculation and installment buying helped caused The Great Depression because people were buying so much stuff on credit, when

Deepening the great depression. Many banks were then considered to be unreliable. People bought things using credit given to them by the bank. Others even invested in the stock market using these credits. When the stock market crashed people than went back to the banks calling for money that the banks never had to begin with.

Panic of 1893 1893-1897 The Panic of 1893 was the worst depression in the nation’s history. The economy was centralized enough that most people were influenced by national markets and almost everyone was vulnerable to the effects of a national economic depression. In April 1893, the U.S. Treasury’s gold reserve dropped below $100 million and set off a financial panic as investors sold off their assets and converted them into gold. Along with the failure of the Philadelphia and Reading Railroad, the market was increasingly unsettled.

A lot of folks already borrowed money from the banks to purchase their stocks, now that the stock market crashed the

"Great depression?" they gasped. Consumer confidence plummeted, as did consumer spending (which accounts for a stunning 2/3 of US GDP). Corporations, in a mass panic, swiftly switched into a mode of panicked layoffs and cost cutting. The banks, already spooked, continued to tighten their lending not just to consumers but to corporations and other banks as well. And ditto for the rest of the world.

According to Fortune, “Executives sought to drive growth by putting undue pressure on its employees to hit sales quotas, and many employees responded by fraudulently opening customer accounts. In most cases these accounts were closed before customers noticed, but in other cases consumers were hit with associated fees or took hits to their credit ratings. The bank was forced to return $2.6 million in ill-gotten fees and pay $186 million in fines to the government. But the biggest hit Wells Fargo will take is to its reputation, as the media and government officials spent much of the year slamming the bank for its fraud,” (Mathews). The victims being the unknowing customers who saw their credit ratings plummet and faced steep financial fees, that were brought about through no fault of their own.