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Having too much stuff causes deflation price drop dramatically and people can't sell things for profit.

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After the war farms and factories continued to produce but the demand had gone down.

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The more stocks that are traded meant that the functions in the cycle are more severe.

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Americans were also buying stocks on credits which meant more people owned stocks.

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stocks bought on credit meant that people couldn't pay them back when their value dropped.

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The banks that give all their money back to customers have no money to give out as loans so no one gets money.

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Overtime buying items on credit leads to an unstable economy.

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Overtime buying items on credit leads to an unstable economy.

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Many Americans could only afford new items if they purchased them on credit.

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The banks started to shut down.

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Stocks on credit

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Bank Failures

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The Great Depression Explained in One Minute

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Installment Buying

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Overproduction