Agricultural Recession
- Overproduction lowers prices
- "Famers have always been poor"
- First sign of the coming depression
- Prices went down, farmers didn't have enough money and the drought came
Buying on the Margin
- Borrowing money to buy stock in the hope that it will go up and you can repay the loan and collect the difference (like credit)
- Stock market was a new hot thing
- everyone wanted a pieced of it
- People began buying on margins
- but you didn't always make the money you needed
Summary
Buying on margin was a new exciting thing for this age where everyone could buy whatever stock they wanted without really having the money to pay for it. This was like a loan but the banks weren't actually insured, so when the stock market crashed the banks lost all their money and so did the innocent by-standers who didn't buy on margin but just kept their money in the bank.