What Caused the Great Depression?
The problem of being buried in debt has grown extensively affecting millions of people today. In fact, it is reported that most Americans hold at least one credit card in hand and about 20% of these credit card holders are plagued with a bad credit history.
What is a bad credit loan?
In order to keep up with their mounting debt, many people choose to apply for a credit loan. Simply put, a loan is a sum of money from a lender which is paid by the borrower in installments. A credit loan has a provision for people who are having difficulty acquiring credit because of their bad credit history.
Why do consumers apply for a bad credit loan?
Consumers apply for a credit loan for many different reasons. The most common ones are: – emergencies – paying for a college education – to set-up a business – for large purchases like a car – for a vacation.
Aside from credit loan, a many consumers are also applying for a bad credit credit card which means you can be qualified for a credit card despite a bad credit record. However, most people who apply for a bad credit loan are those swamped with large debts who badly need a large amount of money instantly at hand.
What are payday loans?
Payday loans or cash advance loans have become popular for consumers looking for a small loan amounts quickly. The borrower writes a check which is held by the cash advance or payday loan company as collateral. It’s then cashed after a specified time, usually 2 weeks. The fees associated with these types of loans tends to be higher then loans from the bank, but they have an extremely easy approval process and are quickly funded, sometimes within 24 hours of applying.
How to get approved for a larger loan amount even with a credit problem
Banks however do offer larger loans for people with bad credit. This involves a more complex and a longer processing period than that of a smaller loans. In general, credit loan amount vary form as low as $5,000 to as much as $100,000, with a paying period of around 2-20 years. Applicants are often required to surrender a certain property of value like their house, car, boat or any piece of real property as collateral.
Of course banks are concerned about their assets and it is expected that they want assurance from their borrowers that they would be paid back. Since the borrower has a bad credit record, he is therefore considered as a high risk borrower and creditors usually charge higher interest rates for a credit loan.
This being the case, it is important to remember that the original debt you owe will incur higher interest rates if you fail to keep up with your balances within the arranged paying period. In addition, a borrower must also be aware that in acquiring a bad credit loan, he could be at risk of losing his property in case he will not be able to pay for the amount he borrowed.
Taking all these into consideration, each individual must examine his own standard of living especially with regards to his finances. Certain changes with your spending habits might be needed or an additional source of income could be of enormous help. If you have decided to apply for a credit loan, plan in advance how you will pay it back. As with any transaction, read and understand all agreements that you’re signing up for. Make sure that you are aware of your rights and privileges as well as your duties and responsibilities as a borrower.
Here the video related to bad credit loan
Another video that’s “exactly what it says on the tin.” We’ve been talking around the Great Depression in so many videos, covering bits here and there, that I thought it deserved its own video. … economics great depression causes federal reserve gold standard free market jp morgan woodrow wilson warren harding herbert hoover fdr
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About Author
Liz Roberts is a freelance writer and loan consultant specializing in bad credit. For the list of lenders that provides bad credit loans and bad credit cards visit this site badcreditresources.com
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hyper-inflation was the cause.
People had to collect their wages and buy their food immediately, so that they could afford enough to eat.
It dropped from 400 to 145 points, but it's more a question of degree of drop (that's almost a 50% drop, compared to the 3% drop of yesterday). See http://www.stock-market-crash.net/1929.htm
fuck you, president of the united states of assholes
cock sucking nigger, ask what you can do for your screwed up shit hole nigger beating country. Not what your country can do for Iran. Clean your own back yard and not interfere in other people’s front yards. The Iranis will screw your ass so badly that you will not know if it is black or blue and make your asshole mouth bigger than it is.
The depression in the 1870's is measured from 1873-1879.
The Great Depression is measured from 1929-1941.
Which one was longer?
"The Depression of 1873-1879 was precipitated by the bankruptcy of the railroad investment firm of Jay Cooke and Co. but the deeper cause was the restrictive monetary policy of the Federal Government. The U.S. was on the Gold Standard but the increments in gold holdings was not sufficient to keep up with the demand for money resulting from the growth of the economy. Consequently there was deflation. This meant that even if the nominal interest rate were zero the real interest rate would be positive.
The U.S. had experienced a great boom in railroad building that had maintained high levels of demand for the iron and steel industries. When the profit rate for railroad building dropped below the real rate of interest the railroad building stopped and the production of iron and steel had to drop drastically as well. Jay Cooke and Co. was just the first of about ninety railroads that went bankrupt."
From San Diego State University Dept of Economics
One could argue that the US system of Mercantilism that was entrenched by force-of-arms in 1860 wanted to thin the herd for their favorites who could snap up miles of rails and equipment at bargain rates.
On a more contemporary note, the future suppliers of "green electricity" don't have the lines necessary to deliver their product. What better way for those transmission lines to be had than by bankrupting the power companies that own them?
The policies of FDR did not end the Great Depression but rather extended them by 7 long years.
http://www.newsroom.ucla.edu/portal/ucla/FDR-s-Policies-Prolonged-Depression-5409.aspx?RelNum=5409
The power lines in the South that delivered cheap coal and hydro generated power that finally did start some real “Reconstruction”, after 80 years of waiting, will soon be up for grabs if Cap and Trade gets through the Senate.
Report of the National Emergency Council (Washington, DC: Government Printing Office, 1937)."Eight decades after the end of Reconstruction, the National Emergency Council created to examine the Depression of the 1930s reported its findings to President Franklin D. Roosevelt: The South, it said, had been reduced to the status of a colony."
The nationwide cycle of "booms" followed by "busts" are the result of the only agency that has the power to act on a nationwide scale: the government.
Capital mal-investments occur on a large nationwide scale only by the government over-riding the checks and balances provided by the free market, i.e., making money "cheap" (forcing banks to lower the rate of interest) by "expanding the money supply". This "cheap" money results in irrational investment into industries that would appear unprofitable if the government did not intervene into the money supply.
This is exactly what the changes made by Clinton to the “Community Re-investment Act” did in the 1990’s to the housing and mortgage industries.
If not for those changes, we’d have never heard of Zero-down sub-prime mortgages or mortgage derivatives and this crisis “opportunity” for democrats would not have materialized.
hello
The Great Depression was a dramatic, worldwide economic downturn starting in most places in 1929 and ending at different times in the 1930s for different countries. It was the largest and most important economic depression in world history, and is used in the 21st century as a benchmark on how far a modern economy could possibly fall. The Great Depression originated in the United States; historians most often use as a starting date the stock market crash on October 29, 1929, known as Black Tuesday. The end of the depression in the U.S. is associated with the onset of the war economy of World War II, beginning around 1939
Australia's extreme dependence on agricultural and industrial exports meant it was one of the hardest-hit countries in the Western world, amongst the likes of Canada and Germany. Falling export demand and commodity prices placed massive downward pressures on wages. Further, unemployment reached a record high of almost 32% in 1932, with incidents of civil unrest becoming common. After 1932, an increase in wool and meat prices led to a gradual recovery
Two days after James Scullin was sworn in as Prime Minister, the Wall Street Crash of 1929 occurred, marking what is now perceived to be the beginning of the Great Depression
Throughout Scullin's term, commodity prices continued to fall, unemployment rose, and Australia's big cities were depopulated as thousands of unemployed men took to the countryside in search of menial agricultural work.
The Bank of England was concerned by the possibility of default and in 1930 sent an envoy, Sir Otto Niemeyer, to lecture Australian governments on the virtues of austerity and belt-tightening. At a conference in Melbourne in that year, all state and federal governments agreed to slash government spending, cancel public works, cut public service salaries and decrease welfare benefits. This became known as the "Melbourne Agreement".
Jack Lang, the Labor Party Leader of the Opposition in New South Wales and a fiery left-wing populist, campaigned vigorously against the provisions of the Melbourne Agreement. He was elected in a landslide in the NSW state election of 1930.
In 1930, more than one in five adult males in New South Wales was without a job. Australian governments responded to the Depression with measures that, Lang claimed, made circumstances even worse – cuts to government spending, civil service salaries and public works cancellations. Lang vigorously opposed these measures and was elected in a landslide in October 1930.
As Premier, Lang refused to cut government salaries and spending, a stand which was popular with his constituents, but which made the state's fiscal position even more parlous. He passed laws restricting the rights of landlords to evict defaulting tenants, and insisted on paying the legal minimum wage to all workers on relief projects.
In 1931 at an economic crisis conference in Canberra, Jack Lang issued his own programme for economic recovery. The "Lang Plan" advocated the repudiation of interest payments to overseas creditors until domestic conditions improved, the abolition of the Gold Standard to be replaced by a "Goods Standard" where the amount of money in circulation was linked to the amount of goods produced, and the immediate injection of £18 million of new money into the economy in the form of Commonwealth Bank of Australia credit. The Prime Minister and all other state Premiers refused.
Lang refused to give money to the State that would be used to repay foreign debt,and withdrew all the state's funds from government bank accounts and held them at Trades Hall in cash, so the federal government could not gain access to the money. The Governor, Sir Philip Game, a retired Royal Air Force officer, advised Lang that in his view this action was illegal, and that if Lang did not reverse it he would dismiss the government. Lang stood firm, and on 13 May 1932 the Governor withdrew Lang's commission and appointed the UAP leader, Bertram Stevens, as premier
And no … he was european … not asian
who the hell are you to tell Iran what to do you slave mother fucker. You have done nothing but to take your black race back to the days of slavery cause you are now sucking white dick and saying amen to your masters. they will lynch your nigger ass if you dare to disobey their commands. so just keep sucking their dick and dont dare to f. with real men in Iran
He has done nothing but spend our money on junk. No real jobs are being created and the market and economy has no confidence in his agenda. CALL YOUR SENATOR TODAY TO VOTE AGAINST CAP AND TRADE The most destructive legislation in History.
The cause was a lack of liquidity in the financial system, which caused a lack of trust in the value of assets, runs on the banks, hoarding, price gouging, a bunch of politicians running around blaming each other, and no leadership.
Sound familiar?
obama going to save world, America, and family like whats he’s born to do.
with your black ass, your masters will achieve 2 aims. 1. To achieve their imperialistic aims. 2. To dirty niggers so no black man can ever dream of holding a powerful office. So on both counts you have served as a means to an end
Republicans and Democrats are false alternatives. Many Republicans at the time were "me-too" Republicans anyhow.
He is so full of shit. That’s you the flys like him.
seriously what have you done for us?
It did in several ways, and there is at least one or two books written about that — e.g., "Golden Fetters" by Barry Eichengreen.
But in real brief, during the depression the Federal Reserve should have printed money like mad — like our Federal Reserve has been doing here lately. They didn't, in part, because the money supply was legally restricted by the gold standard and the fixed supply of U.S. gold.
Several things caused the Great Depression. Farmers overplanted the soil, causing the Dustbowl. World War One put Europe in a position where it was hard for them to pay their debts to U.S. The big reason that led to the crash was that people were abusing credit. The stock market was filled with money that people didn't even have. It was artificially inflated, causing it to crash.
Right before the crash, the economy was great, so people were expecting that prosperity to go on forever. People had never faced a depression that big, so nobody knew what to do. President Hoover made the situation a little worse when he raised tariffs which reduced U.S. trade with Europe.
Roosevelt's New Deal improved the situation slightly by raising consumer confidence and providing temporary relief, but the Great Depression truly ended when the U.S. entered World War Two because that created millions of jobs.