causes3_243x350.jpgimages.jpgBefore "Black Tuesday" occurred, America went stir crazy and started treating themselves to luxuries and buying almost everything on credit. Even though they didn't have all that money they needed now, credit allowed them to purchase something and pay the store or company back within a week to a month. They simply could go out and buy something even if they couldn't afford it and pay it back later on. Eventually it lead to millions of people falling into debt. Then installment buying came out where lenders were allowed to reposses a borrowed item if the buyer missed a payment date. Consumer spending eventually dropped and prices slowly started to lower which meant that sooner or later no one would be able to pay off their debt.