High demand kept factories humming, but it was based on debt, not actual wealth.

Eventually, consumers reached their credit limits and stopped buying, leading to massive unsold inventories. 📈 Speculation and "Buying on Margin"

A comparison of the vs. the 2008 financial crisis .

The transition from a "cash-and-carry" society to a credit-fueled economy in the 1920s was a primary catalyst for the Great Depression. While credit initially drove an unprecedented economic boom, it ultimately created a fragile "house of cards" that collapsed in 1929. 🛒 The Rise of Consumer Debt

The specific that failed to stop the crash.

In the 1920s, "buy now, pay later" became a national mantra. For the first time, average Americans used to purchase expensive new inventions.

Fearing their money was gone, depositors rushed to withdraw cash, causing thousands of banks to fail and wiping out the life savings of millions.