How Far Was Speculation Responsible for the Wall Street Crash?

Firstly, we can say that speculation is the cause of the Wall Street Crash as when the good investors began to lose confidence in some companies and started to sell their shares, many people followed them and everyone panicked. With this chaos no one wanted to buy shares, so the stock market became worthless overnight.

On the other hand, other factor that affected the Wall Street Crash was the small confidence of the people of those times buying and selling the shares. This affected the crash as when the market started to collapse people became more worried and they sold all their shares which made the problem even worse.

Moreover, we may see that the actions of the banks of lending money to the investors to buy shares were a complete failure as when the crash of the market appeared, many people decided to remove their savings from their accounts so that they couldn’t lose that money, but as the banks had lend to the investors all of their money, they went bankrupt.

Furthermore, the poor distribution of wealth among the rich and the poor people was another cause of the Wall Street Crash. The only ones who bought things were the rich and the medium class but they didn’t wanted to buy more things as they already had all what they wanted. This lead to a crisis in all of the factories, which started to lose money as no one wanted to buy anymore. So their shares value was reduced, this made that less people wanted to buy their shares in the stock market.

Also, other factor that was responsible for this crisis was overproduction, as if no more people wanted to buy things. Companies started to lose money so they needed to fire employees. So at the end factories needed to close, so their shares didn’t have any value at all.

Lastly, we can say that the loss of export was responsible to the Wall Street Crash as it was related to other factors such as overproduction. This was responsible for the crash as if other countries didn’t want to buy more things; there was an overproduction that leads to the closing of the factories.

In conclusion we can see that speculation was responsible for the Wall Street Crash but other factors were also.