By the 1920s, the American economy was characterized by interdependence:
American families kept their savings in over 25,000 banks nationwide.
Farmers borrowed from banks to pay for equipment and other expenses.
• Investors borrowed from banks to open businesses and buy stock on
margin
• Banks also invested in the stock market, often using their customers'
savings
• Bankers, investors and average Americans were tied together in a chain
of leverage and debt, fueled by the booming stock market.
What might cause this chain to break? What could result?