The United States hit the so called “great era” in the 1920s, Americans suddenly took an interest in the stock market. Many ordinary people believed the stock market was the place to seek for wealth. For almost eight years the stock value has been raising, stocks represented opportunities and dreams. Rich stock investor like Jesse Livermore and Charles Mitchell persuaded many middle and lower classes to buy and sell stocks. Banker, broker and speculators were celebrities of the day, they represented the wealth of the economy. It was not until 1929 until the when the crash of stock market that led the nation into a tremendous downfall.
After World War I, the United States had an extensive economic expansion due to new technologies and enhanced production processes. The Stock Market benefited from the expanding economy. Eventually the Stock Market Crashed on 1929. Many banks tried to collect loans made to stock market investors since their holdings were worth nothing at all. When people found out that the banks’ assets contained uncollectable loans, depositors rushed to withdraw their savings, concerned about the security of their bank. Several thousand banks began to fail due to the panic. In result of the Stock Market Crash, many people lost their entire saving, many companies failed, and peoples’ faith in banks was destroyed. This event triggered the beginning of the Great Depression.