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Causes of Great Depression Comic

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Causes of Great Depression Comic
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  • I am going to invest in stocks like everyone else. It should be an easy profit.
  • You should! I invest and it makes me easy money.
  • Would you like to borrow money from me?
  • Yes, my investment will contain a little of my own money and a lot of borrowed money.
  • In the late 1920s, everybody was used to making a profit with stocks. Because of this, company's stock prices grew way more than they were actually worth, and people always assumed that the stocks would always increase in value.
  • Wow! I made a huge profit! I'm going to pay back my borrowed money and reinvest. That guy was right, this is an easy way to make money.
  • The cycle of investing repeated itself. A person would invest with lots of borrowed money and a little amount of their personal money. As time went on, the amount being borrowed increased, the profit increased, and the value of stocks increased.
  • I am going to reinvest more cash. I will be able to get tons of money!
  • How are the stock values going down? This is not going to be good...
  • In 1930, the stock market crashed. Because many people believed that they would always profit off of investments, many people borrowed money in order to invest. When their stocks decreased in value, they were in serious debt, and could not pay back this borrowed money.
  • I cannot pay off my borrowed money. I'm in some serious trouble.
  • Same. I never could have guessed that the my investments could lead me into debt.
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