investmentyoo

Investment History Part 06: How Did the New Deal Change the Stock Market? After the Great Depression, the U.S. stock market experienced more than a collapse in prices. It experienced a collapse in trust. Investors no longer trusted stocks. Depositors no longer trusted banks. Businesses no longer trusted future demand. Consumers no longer trusted their own income stability. The market had not simply fallen; the entire structure of confidence that supported the economy had been shaken. The New Deal emerged in this environment. It was not just a short-term stimulus program. It was a broad attempt to rebuild the financial system, restore confidence in banks, create rules for securities markets, respond to mass unemployment, and revive demand in an economy that had lost its ability to recover naturally. From a stock market perspective, the New Deal was complex. In the short term, many investors and businesses saw it as a period of stronger regulation and greater government intervention. In ...