Topic > How did the stock market crash happen? Crash - 626

Before the stock market crash occurred, ironically, the economy was at its highest peak. Businesses were popping up left and right, natural resources were in greater demand, many more cars were being purchased because people could now afford them. Everyone was happy and spent their money on what they wanted because they had the money to afford those things. One of the biggest contributors to the success of the economy was when people invested in the stock market and made a profit. Many people were starting to take out loans so they could buy more shares (percentage of an industry or market's total sales earned by a particular company over a period of time) and sell them to get more money at a more efficient rate. Investing was a big risk because people had the wrong idea about it. They thought that every investment they made would earn them a profit when that clearly wasn't the case. Many times the investment that people make could be a complete flop and they would actually lose money instead of earning it. But since the economy was booming, here we were...