1: Stock market stability (stock market crash 1929) : This was one of the major causes that led to the Great Depression. Two months after the original crash in October, stockholders had lost more than $40 billion dollars. Even though the stock market began to regain some of its losses, by the end of 1930, it was not enough and America truly entered what is known as the Great Depression.
2: a weak national economy.
3: Overextended credit: The depression was caused also by excess expansion of credit during the 1920s. This overextension by banks caused an unnatural disequilibrium in the money markets that initially caused a boom then a bust.
4: Agricultural overproduction: factories and farms were producing more goods than the people could afford to buy.
