Market crash of 1929
After the first World War,the 20's were a time when the economy(specially america's one) was in huge safe.The stock market was in great groing and many people that aren't used to invest in stocks started to see the Wall Street as a easy way to became rich.In 1929,the Dow Jones points multiplied more than 6 times from what they were in 1921.In these times,it was easy to find a lot of new millionaires in the U.S..http://www.stock-market-crash.net/1929.htm.
As long as the Stock Market was one easy to former new richs,many americans took borrowed huge amounts of money from banks to buy even more stocks.At 1929,it was commun to find investors that had more than 70 % of face value's stock lended.But the in the late 1920's,a speculative boom started,and most of that brokers were trying to sell their stock's to get their money back and to pay their debts.This fgact created a economic bubble.http://www.martinfrost.ws/htmlfiles/aug2007/wallst_crash.html
One important point about the 1929 crash is that even today it is almoust impossible to say for sure why this crash happened.Although America in that time had some problems in many corporate structures(what many people offer as the explanation for this crash),sometimes the fear of a new crash cuases panics in stocks market,because we can't be sure when this kind of thing will happen again.http://www.downtownexpress.com/de_76/75yearsafterwall.html
