by 
A.Jizzle
ANSWERS: 1
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Yes, but I am only guessing...I think the problem started with purchasing on margin, which was great in the beginning. Borrowing money to invest seemed to make a lot of people very rich. Then when fewer items were selling, our economy slowed down (like a recession); that led to people who worked in large manufacturing companies to lose their jobs and since many people purchased stocks on margin, they went from riches to rags instantly. Not sure again, but I think that's when life insurance companies instituted the suicide clause because there were many suicides after the crash. I believe if people back then purchased what they could afford and kept the economy healthy by spending, then I think the crash could have been prevented. I really don't know how accurate my answer is, but I liked your question.
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