History

In the roaring 1920s, the United States bathed in previously unheard of prosperity. Industry and agriculture alike profited from the thriving economy. The Federal Reserve Board (known as "the Fed") practiced a policy of easy money, and consumer confidence was high. Average income grew steadily throughout the decade and production soared. Levels of investment grew to new heights. At year's end in 1925, the market value of all stocks totaled $27 billion. By early October of 1929, that …

…triggered the crash, but it no doubt helped to set the stage for the reversal of fortunes in late 1929. There were many causes of the stock market crash October 24, 1929. Of these various factors, the market speculation of the 1920s is the most important. However, one must consider external forces such as foreign investment, and look into the psychology of the market players in order to get a complete picture of the causes of the crash.