The wall street crash

Between 1919 and 1924 the European economy went through a period of stagnation, all the European countries that had been involved in the conflict were burdened with a heavy public deficit, caused by the vast military expenses, too. The factors that had determined it had been the enormous investments in the fixed capitals of great industries and a reorganization of the productive systems. Until 1928 the U.S.A. enjoyed an extraordinary economic growth. After taking part in the First World War, besides exporting its agricultural and industrial products to Europe, it helped European industries to overcome the post-war crisis, investing large capitals, too. Between 1925 and 1928 the value of the shares exchanged at Wall Street went up enormously. On the 24th October 1929 and again on the 29th, share prices on Wall Street ( the New York Stock Exchange) fell dramatically. This fall became know as the Wall Street Crash and it led to the Depression, which hit the USA in October 1929 and then spread to most countries in the world. Actually production had increased so much that it was impossible to find buyers both in America and Europe.