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As strains in the Stock Market accumulate, more and more investors become aware of the potential problem and its consequences. A crash usually must have a trigger to cause a sudden decline. the first six months of 1929, was a record half year. Iron and steel led the way with doubled gains.[21] Such figures set up a crescendo of stock-exchange speculation which had led hundreds of thousands of Americans to invest heavily in the stock market. A significant number of them were borrowing money to buy more stocks. By August 1929, brokers were routinely lending small investors more than two thirds of the face value of the stocks they were buying. Over $8.5 billion was out on loan, more than the entire amount of currency circulating in the U.S. at the time.

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Wiki User

9y ago
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10y ago

Frenzied specultation appears to be the main reason. The you tube video is interesting

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Wiki User

12y ago

The Hoover administration's hands-on approach to the economy

The federal government lowering tariffs

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Wiki User

12y ago

Stock prices had risen too high because of speculation

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Wiki User

11y ago

Economy Prices

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Aj Berry

Lvl 2
2y ago

Stocks sold for more than they were worth

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Q: What was the major cause of the stock market crash?
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