the stock market crash of october 1929 is recognized as the beginning of the great depression as it caused national banks to fail, investments to crash, and production to halt. the steep crash in the prices of stocks was due to widespread financial panic and was caused by stock brokers who called in the loans they had made to stock investors. the stock market crash of october 1929 is recognized as the beginning of the great depression as it caused national banks to fail, investments to crash, and production to halt. the steep crash in the prices of stocks was due to widespread financial panic and was caused by stock brokers who called in the loans they had made to stock investors.