The Crash of 1929</<u> VideoPooling-The wealthy would gather and pool their money into a stock to make it's value go up, then sell if for huge profit. They also make it look like they're accumulating the stock and people start buying then sell and the stock would collapse.What did Fed Reserve do-They saw that the market was not stable. So they raised the interest rates so people would quit buying on margin. People then started panicking and began to sell but people borrowed more money to try and keep their stocks. That caused interest rates to continue to rise.What cause the Crash- Stocks went up while the true value of the company went down. People bought with borrowed money. Sales fell and people went into debt.
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