Speculators borrowed heavily to invest from "summary" of The Great Crash 1929 by John Kenneth Galbraith
Speculation in common stocks had become virtually a national pastime. People of all ages and professions were caught up in the fever of the market, believing that easy money was to be made by investing in stocks. To finance their investments, many speculators turned to borrowing money, in some cases from their brokers or through loans secured by their stock holdings. This allowed them to leverage their investments, potentially increasing their returns but also exposing them to greater risks. The practice of borrowing heavily to invest became increasingly common as the stock market continued to rise, fueled by optimism and speculation. Many speculators were convinced that the market would only go up, making it seem like a sensible decision to borrow money in order to maximize their potential profits. However, this strategy left them vulnerable in the event of a market downturn, as they would be forced to sell their stocks to cover their loans if the value of their investments de...
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