Herbert Hoover became president in 1929. He was confident that he could help America and be a good president.
People became concerned that they were producing more than what could be sold. Prices of food raised and became so expensive that it was hard for people to buy what they needed and sell to earn money for things they needed.
People started investing in the stock market. The stock market kept growing and became a big thing. People would put money in to hopefully earn more money. "Borrowing" money became a big thing in the market.
The investers still had to pay the money back though.
Over time stocks lost their values. From the money that people invested, they basically lost the money
The stock market eventually crashed because of how many loans were given and they had lost 12%. Pres. Hoover tried to tell everyone that it was only temporary and used the word "depression to explain it."
After the stock market crash, people went to banks to get their money out so they knew they had it in a safe place. Although banks ended up finding themseleves with no more cash.