Financial Speculation and Its Implication -part 3-
A very significant negative impact that has had the world’s economic history is the financial crisis of 1929-1933. This crisis starkly reflected the deep contradictions of the capitalist system. The failure of the U.S. economy was so alarming.
In the four years of the 5761 banking crisis broke. Exports declined significantly from 5157 million in 1929 to only 1647 million in 1933. The crisis manifested itself in industry, agriculture, commerce, banking, since all sectors were affected.
The crisis spread worldwide and as the country’s economic fundamentals were sound, the Wall Street crash occurred in the United States a period of economic stagnation known as the Great Depression. The first effect of the crash was the failure of numerous banks consequently resulting in a weak financial system. Continue reading