The stock market crash of 1929 was preceded by a long period of speculation. During this time, millions of people invested their savings or borrowed money to buy stocks. This pushed prices to unsustainable levels.
Some factors that contributed to the crash include:
- Overconfident investors who believed in sustained economic growth
- Buying shares on the margin
- Overinflated shares
- Growing bank loans
- Higher interest rates
Too many parallels. It's about to hit the fan.
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