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Why The Stock Market Crashed

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One must learn how the stock market crashed before they look at the reaction America has to it. The stock market crashed for a number of different reasons, one of those reasons was credit boom. There was a bull market in bank credit and loans during the 1920s. People thought that they could only make money, and not lose any money by using the stock market. Obviously, they were very wrong. The stock market was a popular way to get money, and everyone wanted to be part of it, some buyers went as far as to borrow money to buy shares. Businesses would take out loans for expansion. Not long later, they all went into debt, and tried to sell their shares to pay their debts. People also started buying on the margin. Buying on the margin is very closely

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