At the end of the war in 1918, all the European nations that had been allied with the US owed large sums of money to American banks and could not repay them with their shattered economies. The reparation payments were needed greatly from Germany and Austria, yet they were no more able to pay than the Allies were...
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This caused American banks to begin making large loans to European governments which they used to pay off their earlier loans, really only piling up debts. The collapse of the international credit structure in 1931 was one of the reasons the Depression spread to Europe. Hoover made many noteworthy attempts to try and combat the Depression...
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Current Event of Bush Bailout Plan According to various critics, having a government deficit during times of a recession are a good thing because it stimulates demand in our economy. I’m not so sure I agree with this, but if it is true, then we are on the right track, since the Bush Administration already has a large and soon to be larger deficit in their hands right now...	2 / 496
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