Today we talked about the stock market crash..-people were in debt because of buying things on credit, so by the late 1920's, people stopped buying things.-people also stopped buying things because they had everything.-people also stopped buying things because of the Federal Reserve System, by 1929 the FRS raised interest rates.-companies were not making money-when the federal reserve system highered interest rates people stopped borrowing money, so they had no money-people were buying stocks on margin (buying stocks with borrowed money)Back in the thirties, and also today, we were and are stuck in a cycle. The thing was that people were getting laid off, people made less money, people were buying less, more people were places were going out of business, more people were laid off, more people were making less money, more people were buying less, more businesses were failing, ect.
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