Since the beginning of the industrial revolution in the early nineteenth century the United States had experienced recessions or panics at least every twenty years. But none were as severe or lasted as long as the Great Depression. Only as the country got ready for war in the late 1930s did the depression finally start to ease.

Stock prices had been rising steadily since 1921, but in 1928 and 1929 they surged forward, with the average price of stocks rising over 40 percent. The stock market was totally unregulated. Margin buying in particular proceeded at a rapid pace as people borrowed up to 75 percent of the price of stocks. That easy credit lured more speculators and less creditworthy people into the stock market. The Federal Reserve even warned member banks not to lend money for stock speculation because if prices dropped, many people would not be able to pay back their debts. No one listened. The stock market began sliding in early September, but people ignored the warning.......

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Title: The Great Depression
Approximate Word Count: 390
Approximate Pages: 2 (250 words per double-spaced page)

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