The United States has experienced a recession approximately every twenty years (give or take) since the start of the Industrial Revolution. Nothing that had come before was as severe, as chaotic, or as long-lasting as the Great Depression. The collapse was felt far beyond those of the financial markets. Speculators who borrowed money from banks to buy their shares could not repay the loans because they could not sell the shares, because no one else would buy them. This caused many banks to fail and close their doors. Because bank deposits were not insured before the 1930s, depositors lost their money, which in most cases was all the money people had. The stock market crash only exacerbated the course of the Great Depression in many ways. Not just wiping out the savings of thousands of people. It hurt many commercial banks that had invested in corporate stocks. It also caused a loss of confidence in the market, which in turn prolonged the depression. President Herbert Hoover attributed the severity of the depression to the international economic situation. The postwar international economy functioned only as long as American banks exported enough capital to give European countries the ability to repay their debts and continue purchasing American goods. As U.S. companies began to reduce production, they also began to reduce purchases of raw materials and supplies from abroad. As a result, many European economies collapsed. American financiers sharply reduced their foreign investments, and consumers began purchasing fewer foreign goods. Paying off debt has become much more difficult for everyone overall. As European conditions continued to worsen, demand for American exports also declined. In the end, when the Hawley-S...... middle of paper ......d economic chaos, it was not alone responsible for the Great Depression. Depression across the nation (and world) was the result of a combination of factors that accrued during the 1920s. The works cite "Causes of the Great Depression | Causes of the Great Depression | The Great Depression." Causes of the Great Depression | The Great Depression | Causes, effects, timing. Network. March 29, 2011. "The Great Depression - Causes of the Depression." Southern Illinois University Museum | House. Network. March 29, 2011. .Kelly, Martin. "Great Depression: The Five Major Causes of the Great Depression." American History from About. Network. March 29. 2011. .