What significant economic event is characterized by excessive lending and the Stock Market Crash?

The Great Depression is the significant economic event characterized by excessive lending and the Stock Market Crash. This devastation began with the stock market crash of October 1929, which wiped out millions of investors and led to a dramatic decline in consumer and business confidence. The years that followed were marked by widespread bank failures, massive unemployment, and a staggering drop in industrial output.

A crucial factor contributing to the Great Depression was the overextension of credit, where banks issued loans without proper assessment of borrowers' ability to repay, creating a bubble that ultimately burst. The ripple effects of the stock market crash exposed the structural weaknesses in the economy, leading to a prolonged period of economic hardship that lasted throughout the 1930s. This event reshaped American society and government, prompting significant policy changes aimed at stabilizing the economy and preventing future crises.

While the other options reflect various economic challenges in U.S. history, none correlate as directly with the specific characteristics of excessive lending and the immediate aftermath of the Stock Market Crash of 1929 as the Great Depression does.