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The twenties also led the United States into unprecedented industrial growth, inventions and discoveries of major importance, as well as significant changes in US lifestyle and culture.Though must prosperity was achieved during the Roaring Twenties, much despair would follow by the end of them.But soon overconfidence took its toll which contributed to the stock market crashing in 1929.
Now President, Coolidge began his administration by focusing on decreasing the income taxes of the wealthy.
Coolidge managed to sustain economic stability and growth throughout most of his presidency and the decade.
The instability could be correlated to the fall of estate prices.
But nevertheless the instability began to panic some investors.
Investor began to sell their stock left and right and as quickly as they could to minimize any loss.
The panicked selling of stocks and shares resulted in the plummeting of prices in the market and ultimately led to what we know now as “Black Thursday,” or the “start” of the Stock Market Crash of 1929. Since the stock market was such a popular means of “making a fortune” many banks had invested large sums and portions of client’s savings in the stock market; sometimes dishonesty played in as well and the clients who had invested their savings in the bank had not the faintest of clue that the banks had illegally spent their money.
Soon people began to borrow sums of money to buy stocks. With such a boom in business in investment trusts, many Americans began letting “professionals” buy and sell stocks for them.
Since the 1920’s held such high share values investors began to borrow more and more money so they could continue to buy more stocks.
These banks who dishonestly spent their clients’ money were the firsts to close when the stock market crumpled.
When people saw that banks were closing this caused more and more to panic about their money.