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Stock market shares goes free fall,because of this there were wild rush outside the markets and panicked investors sell their millions of shares with low prices. This economic loss cause great depression .
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After 1929 ,In US there was another incident takes place which was dust storm.It is also referred as DUST BOWL.This lead the peoples to further more depression.
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Hoover the president of US signs the Smoot-Hawley Tariff Act .This rises taxes on imports in order to protect businesses and farmers.
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Banking panic occurs when peoples who had deposited their money in banks lose confidence in the security of the banks and starts withdraw their money.
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President Hoover reconstruct Finance Corporation (RFC) to help banks and industries.He also construct HOOVERVILLES for homeless families.
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In presidential elections hoover loses to democratic challenger Franklin-d.Roosevelt.
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President Roosevelt takes action once in office and declare this day(6 march) as National Bank Holiday.
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Roosevelts new deal establishes programs such as Work Progress Administration (WPA) and Civilian Conservation Crops (CCC) to provide temporary jobs,financial regulatory agencies, such as Federal Deposit Insurance Corporation (FDIC) and the Securities and Exchange Commission (SEC) also created.
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The US is hit with another very severe economic downturn.But this was overcome after 1938.
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After 1937 US gets back to recovery path of economy.In 1942 it was finally returned in its normal condition.
