Similiar to what is happening in the 2000s, back in 1929, stock prices were overvaluated and that came in conjunction with a crappy real state market. People were spending a lot of money during the 1920s (a little like what happen in the 1990s) because they were investing again, after the end of the Great World War of 1914-18, and things just got worse and worse in terms of economic speculation.

Basically there were several aspects of the crash, but the main ones were:

- High speculation
- High stock prices / Overvalued stock
- Downturn of the real state market

You can read the full story here:

http://www.nytimes.com/library/financial/index-1929-crash.html b
Source(s):
http://en.wikipedia.org/wiki/Wall_Street_Crash_of_1929
http://www.nytimes.com/library/financial/index-1929-crash.html


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