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Articles tagged with: Broker Loans

Stock Market Crashes »

Posted on 15 Apr 2011 | 17,818 views
Stock Brokers and Margin Loans in the 1920s

In the 1920s people were investing with money they couldn’t afford through broker loans. The world markets heavily relied on the US market conditions which showed extraordinarily high p/e ratios.

Stock Market Crashes »

Posted on 6 Apr 2011 | 11,608 views
Federal Reserve Policies Sparked the Crash of 1929

Throughout the 1920s, the Federal Reserve System expanded the money supply to provide easy credit for businesses to modernize and expand. This helped the economy boom, but it also encouraged many businesses to overextend their resources.