Originally posted by Sifright
very poorly written about the wall street crash and it didnt come about directly due to the people buying shares... jezz im assuming youve done history this year or last for gcse well lets get it right this is what happened in the wall street crash!
(a histroy lesson for those of you who dont know
)
1)People buy shars on stock market and make lots of money so people then take out loans on there houses and pretty much any thing they could use as collateral for borrowing to make more money
2) The big spenders who put millions into the stock market begin to pull investment out to get all there money.
3) normal people shiting them selves about how much they invested and the fact that the big spenders are pulling out also pull out destroying the vallues of shares making all those who invested in shares poor and making most companys go bust this lead to less cash being around and less money to be spent on consumer good s which made even more companys go bust so more people unemplyed and so untill world war 2 were america got most of its wealth with the fire arms agreement cant remember the name right now :p
histroy lesson over Wow i just covered a whole lesson in 5 mins : o
edit : fixed up some sp errors quickly: 
I never said that it came directly from the people buying shares. It came from an econimic boom that was facilitated by the increased use of installment credit. People wanted these new products and used credit to get them. Soon afterwards, people could not pay off their debts. This econonic boom caused the stocks to rise and become unstable, and therefore this is a direct cause. I agree with what you (Sirfright) have written, though, though.
This was probably a bad example, but I was just trying to show that buying things on credit will most definitely lead to people getting into debt trouble, and this will ruin the economy.