How did FDRs New Deal save capitalism?
The stock market crash of 1929 portended a much larger problem with economics in the United States. The rush on banks created yet another problem leading to stock and banking failures. Before the New Deal there were no brakes on the stock market or the banking industry. You put money in either and banks and stock brokers did what they pleased. Each game was rigged in different ways where certain people got rich but most that entered into the game midway through or late got the shaft. The New Deal brought the Securities and Exchange Commission Act and introduced the Federal Reserve banking system with consequent banking and stock regulation. That also gave rise to the **** and FDIC to cushion stock and bank failures. The government also reformed the way money was lent. In the past money was deposited and the bank lent that money to home owners who paid interest only on loans that ballooned in a short time. At some point the principal would be due in total. The stock market traded on mar
