I just invested all of my retirement savings in the stock market!!
Yeah well I purchased stock with credit!!
Before the Great Depression, a lot of new technological advancements occurred that were told to make life more convenient. People would pay for these items with credit.
Stock Market Crash
What's going on at the bank?
Many farmers, who were just starting their farms, had amazing success and sold more commodities than what was needed. Thus the prices of most goods dropped and this led to inflation.
All of our families'crops were destroyed in the Dust bowl.
People would also invest in the stock market using their credit. The problem being that no one really knew how the stock market worked and there was no way to track anyone's credit.
It is time to leave this dust ridden land and head to California where there are plenty of job oppurtunites.
When the stock market crashed, many people became severely in debt. People then tried to take all of their money out of the bank but none of their money was backed by anything so many people lost thousands of dollars.
Bank run; didn't you hear? This bank is closing soon.
Then the dust bowl hit and destroyed everything in its path. Many people lost their homes, livestock, and money. This was especially bad because of the amount of dry land farming people had been doing thus the land was already unstable.
We sent our son away to work and earn wages for the family.
Many people lost their homes because they could no pay off their debt thus the banks would liquidate them from the properties.