How Did The Stock Market Crash In The 1930s

The main point on this video is what factors contributed to the stock market crash to start the Great Depression in the 1930s. Because there was no regulation or government involvement in the stock markets at the time, corruption ran ramped. In the 1920s and 30s it was not considered corruption because there no laws against insider trading as there are today. The stock markets were manipulated to drive the cost of shares and stock up through the illusion that the market was strong and everyone was getting rich. The illusion continued by corruption in the media, who published positive articles about certain stock that inflated its prices that were sold to unsuspecting public. Once the pool of manipulators figured the stock to be at a peak they would sell off their stocks that they had purchased for a fraction of the current market value and split the profits making million of dollars.
The public watched prominent figures get richer and richer and decided they to could do the same, they also believed any public figure’s word about the status of the market and acted accordingly to them. They believed prediction with no hard data to substantiate the claims of these Mayors, astrologers, and bankers. So many people thought that nothing could go bad, all was grand so they invested all they had. When the publics money ran out, debt was create called “buying on margin.” This meant they only needed ten percent down to buy stocks. A ten percent payment of $1000 would get you $10,000 worth of stock that you were in debt for. So many Americans were living the dream of getting rich fast and never recognizing the fact that at some point the dream would not