The "Blue Sky" Bubble In The 1920s Stock Market

Recently in class, we learned about the booming 1920s where anything seemed possible. From achieving the success flying to Antartica and France and stabilizing with a growing economy, most Americans never thought the next decade would have a little bit of difference at all. That the bubbly days would just continue on. As the new Republican president Herbert Hoover stated, "We in America today are nearer to the triumph over poverty than ever before in the history of any land." However, on October 29, 1929 the wall street stock market suddenly crashed and plunged into the Great Depression. Within a night, most Americans lost all of their money as there was no social security system that could aid people during a financial crisis.

What appeared to be interesting was that this was so unexpected to most of the optimistic filled people during the decade. The stock market crash hit so suddenly because many didn't see the signs of the crash. That already back in 1926, there was a significant crash in house prices in Florida. There was too much product to be made and not enough consumers and food prices significantly lowered. Too many small banks were created and not enough funds to deal with the sudden rushes to take out savings (autumn 1929). There was also too much speculation on the stock market, especially for middle class people who spent on what amounted to pieces of paper. In addition with this crash, as the Great Depression hit, because America had previously lent huge amounts of money to Europe, with a sudden rush to recall this loan, most of the European banks collapsed as well, causing a global economic crisis. With this being said, what are some other causes that lead up to the crash?