Investors faced severe losses from "summary" of The Great Crash 1929 by John Kenneth Galbraith
Investors faced severe losses. The decline of stock values was relentless. Those who had bought on margin were in an especially difficult position; as the market fell, they found themselves owing more money than their holdings were worth. Brokerage houses, too, suffered significant losses, as the value of the collateral they held plummeted. The impact of the crash was not limited to individual investors and brokerage firms. Banks were also severely affected, as they had lent large sums of money for stock purchases. As the market tumbled, many borrowers were unable to repay their loans, leading to a wave of defaults. This, in turn, put further strain on the already weakened financial system. The psychological toll of the crash was significant. The once exuberant mood of investors had turned to panic and despair. Many saw their life savings wiped out in ...
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