Causes of the Market Crash

It has been said that all good things must come to an end. In the case of the Roaring Twenties that end came abruptly and unexpectedly. It is easy for one to look back upon the economic situation that lead to the crash and ridicule the experts for not seeing the signs of a potential disaster. But it was not so easy for them to see such a crash coming. The 1920's were a booming …

…the uneven distribution of wealth, the excessive practice of buying on margin, and the ignoring of any theory that predicted a crash were all major contributors to the cause of the stock market crash of 1929. The plunge of stock prices and the riot-like reaction of investors were all reasons for the severity of the crash and led to the nation going into a state of depression that would take an entire decade to recover from.