Part 4/8:
Fast forward to the 1920s in the United States, where a booming economy and the widespread availability of credit set the stage for disaster. The banking system fueled investments in the stock market through margin trading, allowing individuals to gamble on stocks with borrowed money. This led to inflated stock prices that were disconnected from their underlying company values.
When the market crashed in October 1929, it was triggered by a collective realization that stock prices were unsustainable. Panic ensued, culminating in a historic economic collapse that left millions unemployed and banks failures rampant. The Great Depression starkly illustrated the dangers of unchecked speculation and the cycle of boom and bust.