Reasons the Stock market crashed by 1929

[Chasstev365]

* A drastic income gap between the rich and the middle
class.

* Americans were not saving enough money in banks.

* Insider trading was rampant on Wall Street.

* Incredible over inflating the value of stock

* A sharp decline in America agriculture

* Personal debt was hurting average Americans


Sound familiar?

[FBaggins]

1. Not really

Primary causes were rampant speculation due to tiny margin requirements (causing forced sales which further drove down stock prices)… mortgages that could be called in when the bank needed capital (regardless of whether you ever missed a payment)..: and lack of deposit insurance driving bank runs that forced them to call in loans.

[Blue Full Moon]

2. Being done on purpose.

Republicans only have one playbook that they have been using for the last 100 years. Musk promised hardships for Americans. It was reported before the election that Trump was going to cause the great depression 2.0.

[haele]

4. The wealthy call it "The Great Reset".

They're looking at the romance of the Antebellum South and decided "That's the way American Life should be - but this time, with smart phones and self-driving cars"

[bucolic_frolic]

3. The Fed tightened the money supply but didn't really know what that would do.

There was no FDIC banking insurance. Hoover's laissez-faire capitalism was in charge. Speculation was even more unregulated than today. Brokers were unregulated. Many stock salesmen sold bogus shares and issued certificates. Same thing with Florida real estate.

This period we're in has elements of the 1970s stagflation and war, the dot com bubble, and the Great Financial Crisis/Recession of 2008-10.

So far it's a little of the 1970s and a market like 2001. Remains to be seen if the debt load breaks upon the masses.

Wild card: Government debt is massive now. No way to print our way out of it. Warsh is not Paul Volcker.