What led to the great depression?

Question:A manic feeling that the good times would never end. People stretched themselves thin buying stocks that kept going up and up. They even borrowed money to buy them. The market didn't even require people to pay in full for them. They allowed stocks to be purchased with "money down" only, in other words to buy on margin. When the market dipped, like markets always do, many people couldn't afford their margin calls. This sent the market crashing downwards and the crash led to the Great Depresion.

Best Answer - Chosen by Asker: A manic feeling that the good times would never end. People stretched themselves thin buying stocks that kept going up and up. They even borrowed money to buy them. The market didn't even require people to pay in full for them. They allowed stocks to be purchased with "money down" only, in other words to buy on margin. When the market dipped, like markets always do, many people couldn't afford their margin calls. This sent the market crashing downwards and the crash led to the Great Depresion.

The stock market crashed in 1929 which led to the great depression

shortage of paper towels

Many things, but the most important being overspeculation.

Everybody ran out of their meds.

No FDIC then. So there was no insurance on the banks so the banks had to assume the losses and the Stock was bought on margin and when they had to pay up the other
90% of their bill they couldn't.