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The main cause of the Wall Street crash of 1929 was the long period of speculation that preceded it, during which millions of people invested their savings or borrowed money to buy stocks, pushing prices to unsustainable levels.
Global stock markets have taken a battering in 2022 over fears of high inflation, rising interest rates and the very real threat of an economic recession.
On September 13 2022, Wall Street dropped to its lowest levels in two years as US inflation figures caused a sell-off of global shares.
A stock market crash is an abrupt drop in stock prices, which may trigger a prolonged bear market or signal economic trouble ahead.
Market crashes can be made worse be fear in the market and herd behavior among panicked investors to sell.
The stock market crash crippled the American economy because not only had individual investors put their money into stocks, so did businesses.
When the stock market crashed, businesses lost their money.
Consumers also lost their money because many banks had invested their money without their permission or knowledge.
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