1. Leverage up to the necks - 90+%, buying on margin
2. Market Manipulations have been born
3. "If a shoe-shining boys knows as much about the market as i do, it's maybe the time to get out"
4. Kahn Brothers - the oldest financial analyst in the world is there
5. Credit was easy and technology made possible to spread the words (tickers)
6. The ordinary people became market participants
7. Wall Street banks opened the doors to general public - Charles Mitchell was a natural salesman and first stock/bonds promoter, Kennedy was the first one too
8. Government and the Wall Street bankers were allied and no regulations were thought needed
9. Cash injections of bankers own $$$$ were exercised to restore public confidence
10. "Magical Power" names Morgan, Lamont, etc
11. Credit default problems, liquidity shortage, bankruptcies
12. Government (Hoover) did not interfere in loss of 25+ Billions
13. People committed suicides
14. Domino effect - 3000 banks were closed
15. All financial system seemed worthless
16. Roosevelt as a new president regulates financial system to restore the confidence in the market, SEC introduced and Kennedy was named a chairman (fox in a coop)
17. "Low standards in higher places"
And look what happens:
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