Although there were several reasons why the great depression started, this is the most cited one. However, this crisis did not actually cause the depression. The stock price of a company is only a reflection of the current information of the future income of that particular company. So when that current information changes, such as when interest rates go up, stock prices go down and they begin to tumble. A stock market crash might however cause people to sell their assets and hoard money.

People hoard money because they are a

fraid of going broke so they sell all of their assets for money, such as stocks going down. For example, they want to have their assets accessible in a transferable form, like money. Hoarding money is not the same as putting money in a savings account, because that is like lending money to someone else to spend. Just hoarding cannot cause a recession or depression. As long as prices and wages go down to compensate for the loss of money in the economy, then there will be no problems. This can even bee seen as a good thing to some, who don't hoard, but would benefit from the lower prices. For a country with a gold standard, the hoarding of money could be disastrous.

When all of these conditions occur, there is a recession or a depression. Because of the stock market crash, people hoarding money, the gold standard, and sticky prices and wag

Some common words found in the essay are:
It's America, Reserve Board, Depression Causes, prices wages, hoarding money, gold standard, stock market crash, stock market, money supply, money economy, market crash, standard sticky prices, depression stock, gold standard sticky, money gold standard, hoard money, current information, hoarding money gold,
Approximate Word count = 568
Approximate Pages = 2 (250 words per page double spaced)