What are the cause and effects of the Depresion during WWII?
Cause: No regulation of Federal Banks ensuring the protection of depositee’s funds like we have now (i.e. The FDIC = Federal Depositor’s Insurance Company) coupled with the Traders on Wall Street having no regulation in addition to their careless habits of speculation (Finance term where traders “Speculate” on Options (another finance term) where the Option market is a mix of buyers and sellers betting on the value of an underlying asset). As a result of this, many people were being successful the same way the 1990’s were, big economy with big profits but in a market that was truly unstable where only the bankers and traders knew the true value of commodities because disclosure (telling the public) and regulation from the S.E.C. (Securities Exchange Commision) did not exist. As a result, the market was formed on the idea that the economy as well as the dollar were strong but when the banks bit off more than they could chew the system collapsed. Basically, bankers and traders borrowed t
