2006-11-27 06:21:49 · 6 answers · asked by beckle2000 1 in Arts & Humanities ➔ History
1. No regulations on the stock exchange. (Security Exchange Commission had not been established.)
2. People's greed for the "good life."
3. Banks feeding this greed by LOANING MONEY TO investors inorder to PURCHASE STOCKS (usually purchased on option.)
**NOTE** At this time "commercial banks" which make deposits and loans, and "investment banks" that dealt with the sales of stocks, were one and the same.
4. Banks calling in the loans at one time, causing panic.
The book "The Day the Bubble Burst" is interesting reading, and should be required reading for all potential stockbrokers.
2006-11-27 07:08:24 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Margins. A form of easy credit, where you bought stock on it. When the market began to down slide, these margins were called to payment. Naturally, this caught many people flatfooted. Now we have law to limit the amount of credit and amount of call made at one time, so as to halt the immediate flow of damage.
2006-11-27 15:11:34 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Everything was WAY overpriced!
Those that realized that and pulled all of their money out before the crash, made out like burglars. Think Paul J. Getty!
2006-11-27 14:24:41 · answer #3 · answered by Anonymous · 0⤊ 1⤋
people buying stocks with borrowed money. and not having enough money to pay out when the time came
2006-11-27 14:29:02 · answer #4 · answered by Starry Eyes 5 · 1⤊ 1⤋
It was a nice piece of ar se in a miniskirt which distracted the drivers...... well that's what caused my last crash!!!
2006-11-27 14:24:42 · answer #5 · answered by Anonymous · 0⤊ 5⤋
Fear & Greed
2006-11-27 14:39:05 · answer #6 · answered by ? 6 · 1⤊ 0⤋