It was December 31, 1928, and financial leaders around the world were celebrating what had been a decade of boundless prosperity and optimism. They thought the party would last forever. They called it the new era. By 1929, all the hopes, promises and illusions of the 1920s had changed things. It was the first time that many ordinary people could buy stocks and became interested in the stock market. A stock is a share of a company's stock that is bought and sold on the floor of the stock exchange. Additionally, during the 1920s, credit was introduced and the stock market was booming. What caused the worst depression in history? What events led to economic failure? Was the government aware of the impending crash? Traditionally, President Roosevelt has been hailed as an economic savior and one of the greatest presidents the United States has had. However, there is another way to look at the causes of the Great Depression. The shares themselves do not have a fixed value, as in a block of stock, if the stock is in demand the price goes up, if there is no demand the price goes down. For almost eight consecutive years, stocks have risen until 1929 and seem to have no upper limits in this world of paper, numbers and dreams. For example, it was a realm of unlimited opportunity where someone like my great-grandfather could come into the stock market arena and make a fortune. So many people made so much money that some thought they could never go wrong buying shares of American companies. It was a whole new way to make a fortune. Unlike the Rockefellers and Carnegies of previous decades who built steel mills and dug oil wells. Men like Jesse Livermore, Michael Meehan, Charles E. Mitchell had made fortunes buying and selling stocks. paper. Americans were fa...... middle of paper ......sh, which led to the Great Depression of 1929. Consumers did not protect themselves because the majority of them believed that he was sure to take out large bank loans. (Scaliger caused Americans to default due to lack of money in circulation. Deflation was a huge factor that pushed America into the Great Depression. Many factors caused the Great Depression, from banks creating from IOUs to deflation This economic crash was due to The capitalist system of the US Federal Reserve, in addition to the many band-aids put in place, before the 1920s, the average worker could not borrow money. By 1929, the concept of buy now and pay later had become a way of life. This contributed to the downfall of the economy; average, hard-working individuals borrowed money that they couldn't. being reimbursed due to unemployment and poor money management of the banking system..