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(The Stock Market Crashes, A Flawed US Economy) - Coggle Diagram

- - - - Middle income people began buying stocks on margin
      - This meant they paid a small percentage of a stock's price as a down payment and borrowed the rest from a stockbroker.
        
        This system worked well only if prices were rising, if the price feel investors had no money to pay off the loans
        
        In September 1929, some investors began to think stock prices were unnaturally high
        
        They started selling stocks, believing the prices would go down soon
        
        October 24, the gradual lowering of stock prices had become an all-out slide downward. A panic resulted Everyone wanted to sell stocks
        
        No one wanted to buy
        
        Prices plunged to a new low, a record of 16 million were sold and the market crashed
- - - - If the U.S. economy weakened, the whole world was at risk of collapse. In 1929, It did.
        
        Even though the economy seemed strong, it had three major flaws: 1: Uneven Distribution of Wealth 2. Overproduction by Business and Agriculture 3. Less Consumer Demand.
        
        Concept: Depression, Recession, And Recovery