Causes of Wall Street Crash 1929 - created from Mind Map

Overproduction in agriculture thanks to technological progress and farmers struggled to find alternative employment as demand couldn't keep up and profitability low

Fragmented weak banking system meant runs always likely

Buying on marginThis left investors very exposed when prices fell

Information assymetries

Poor regulation!

Interest rates too low Fueled credit bubble Why were they too low? Fisher (Debt deflation) Austrian School/Von misses Asset price inflation Lionel Robbins Reduces stock of sound investment opportunites Reliveing pressure on Sterling

Troubles in EuropeComplicated web of war repartions and loans between Germany, France, Britain and US

Irrational exuberance Dissapointing results posted on Black Thursday (Oct 24) Investors cash in profits

Mismatch between production and consumption which led to falls in share prices

Reluctance of government to step in to deflate bubbleConsequences of action seemed almost as bad as those from inaction

Causes of Wall Street Crash 1929