It all started after the World War 1. Americans became more relaxed and they tried to enjoy every moment of their lives after the war. They are expecting that after that, their lives will keep on getting better as time goes by. They also focused on buying new technological innovations at that time such as electric washing machines, refrigerators and cars. During these times, the manufacturers of the said devices needed customers. They produced innovative devices and they hire workers to do it but they have no customers as of that time. Because of this, the factories and manufacturers decided to work hand in hand with banks. These banks granted people with loans that they can use to buy these devices. However, people became relaxed because of the long term payments offered for the loan.
When 1929 came, the great depression started in America. A lot of businesses in America announced that they are closing their businesses. Millions of workers were also left with no jobs because of the closing of businesses. Soon enough, you can already see a lot of people joining long lines just to have free meals from religious groups.
Also during this time, the stock market crashed. This is actually the place where you buy and sell stocks. In the 1920s, people tried to play with the stock market. They buy stocks when the prices are low and sell them when the stocks gone up. They gain profit because of the difference between the selling and buying price. Because of this, almost all the people on the stock market tried to play with it. When summer of 1929 came, people think that it is the highest price that the stocks will go. Because of this, they began selling their stocks. When autumn of 1929 came, it is the time when stock owners panicked. Almost everyone are already trying to sell their stocks but most of the people think that the prices will not go up anymore so there are only few buyers. This is the time when the stock owners see that the thing that caused the people fortunes is taking everything from them.