In that year, the American economy was on the brink of disaster when the largest stock market crash in history occurred, known as the Great Crash. This event marked the beginning of the Great Depression, a period of deep economic crisis in the United States.

The Dow Jones Index, which reflects the condition of the stocks of the largest companies, plummeted by 23% in just a few days. Millions of investors lost their savings, and banks closed their doors.

Why did this happen? The primary cause was the overvaluation of stocks. The stock market frenzy had reached its peak, and stocks were overvalued. When investors started to sell, panic erupted, and the market collapsed.

The consequences were devastating. Unemployment soared to record levels, poverty became widespread, and many people lost their homes.

The Great Depression did not end until World War II and became one of the most severe trials in U.S. history.

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