In the 1920s, things were really unstable in the US and around the world. With the rapid increase in industrialization, which fueled the economy, combined with the many technological improvements had leading economists believing the growth would continue. During this inflation period, wages increased along with consumer spending, and stock market prices were on the rise. Most people wanted to take advantage of the rising prices, which put billions of dollars into the stock

1. http://www.britannica.com/eb/article?eu=71564

1. Bose, Mihir The Crash, 1988, Bloomsbury Publishing Limited, London

2. Kamphuis, Robert W. Black Monday and the Future of Financial Markets, 1987, Dow Jones-Irwin, Inc., Homewood, Illinois

3. http://mypage.direct.ca/r/rsavill/Thecrash.html

The amount of dollars put into the stock market created unsecured consumer debt and left the market unbalanced. Many investors wanted to make a lot of cash, so they decided to invest their life savings, mortgage their homes, and cashed in their "safer" investments like bonds, and bank accounts. The rising prices had some economic analysts warning of a coming correction. Many companies and banks, eager to increase their profits, began to speculate dangerously with their investments. In late October 1929, the buying craze slowly decreased, and the selling of stocks was even crazier.

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Approximate Word count = 612
Approximate Pages = 2 (250 words per page double spaced)