Investment Blunders: Is It 1929
Although many reading this article were not alive in 1929, many people are aware of the massive stocks investments crash in late October of 1929 that sent the U.S. into one of the worst economic states is has ever seen. The reasons for this dramatic crash in some ways were similar to the crash experienced in late 2008 and early 2009 when the global economy felt the ripples of the massive stock market implosion.
During the early 1900’s many people started to see the value in investing. It was believed to be almost foolproof and everyone wanted their fair share. Unfortunately, many of these stocks were being bought in a form of credit. Individuals were buying stock but only paying a fraction of the cost up front.
When the market began to tumble, individuals were called on the total cost of the loan and could not pay it. This set the wheels in motion for the largest stock dive in history. Similarly today, we have had a crash because again, banks were lending money to people who could not afford their credit line.
Insufficient credit checks were performed and now the market has crashed and people are losing homes at a rate that would rival that of 1929. Fortunately, the government stock trading investing has created infusions of capital that some hope will begin to restore the homeostasis of the economy and keep many people who are currently at risk of foreclosure in their houses and above water.

