The Crisis in the US

The crisis itself began with the San Francisco earthquake of April, 19, six. The Bank of England raised its interest rates in an effort to reclaim gold reserves. This led to a mini crash in the US, in the New York stock market in March of 1970. By May of 1970, the US was in recession,. Companies began to cut dividends, cut capital expenditures, lay people off. A failed speculation on the market caused this credit crunch.