Stock Market Crash, 1929.

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Stock Market Crash, 1929

Economic BOOM! After WWI, most companies went from creating military products (guns and planes) to consumer products (refrigerators and cars). To encourage spending, stores created the installment buying: buying on credit. People bought a lot of things with installment buying, creating massive debt.

Stock Market Invested in stock market People bought stock, prices went up, causing a bull market. Made SO much money people started buying on margin: borrowing money in order to buy stocks; the investor put a down payment of the stock’s cost and paid the rest later with the profits earned from selling the stock.

CRASH! Stock prices started to fall in September 1929. In one day $4 BILLION was lost. Tuesday October 29th, 1929 (Black Tuesday) the stock market COMPLETELY crashed, people rushed to sell, but no one would buy. Millionaires lost their money over night. One of the reasons the nation sunk into the Great Depression!