There were a series of events that caused the great depression. First off, many people were doing really well in the stock market. So well in fact, that they began to take out large amounts of loans from the bank to invest in the stock market. On October 29th, 1929, the stock market crashed and many investors lost everything they had invested. Because of this, the banks also lost all the money that they had lent to investors causing them to go bankrupt. With the stock market down and the failure of banks, people didn't know what to do. They stopped investing, trading, or buying goods. This caused the demand for all sorts of products to go down, making the need for workers diminish. More and more people started losing their jobs, which started the cycle over again. The great depression was the largest economic disaster in America's history.