You know that the banks started producing credits so everyone could buy the new technology...
Buy now, pay later. Get rich quick.
I would like to buy a car, a nice house, and a radio. Could you please give me a loan of money.
The Father arrives home really worried. It was 24th of October of 1929...
I would like to invest in the stock market!
Sure, you will get more money soon!
Tom starts explaining his family about the situation.
----Economist---- If a boot cleaner can invest in the stock market as I do, something might be wrong.
Tom: First the banks committed the mistake of giving risky loans to common people, so they started to get into debt.
Tom: Likewise, with those loans of money common people without knowledge in the stock market started investing in it with the purpose of getting higher profits.
Tom: The workers did not invest their money in companies and shops, so they started producing more products, but there were fewer buyers. This created hyperinflation and the companies went in bankrupt because they had to start making a lot of promotions and losing money.
Tom: The companies had to fire a lot of workers, for trying to recover their lost money. While banks started asking for the money they had loaned back. Not only to the common people, but also to the debtor nations like Germany, France, and Britain...