Part 6/13:
The Crash: Ingredients and Policy Missteps
The episode of 1929 is framed as a series of dominoes falling—starting with the bubble's burst to policy errors that deepened the downturn.
Systemic Factors Contributing to the Crash
Excessive credit fueled by low interest rates and rampant speculation.
A surge in stock prices based on technological optimism and easy borrowing.
The eventual tightening of monetary policy as the Federal Reserve tried to tighten credit, raising interest rates and bursting the bubble.