The 1920s saw a huge economic boom in American society. Millions of Americans were financially stable and had disposable income. This allowed Americans to invest in the stock market. During this era, the Stock Market grew exponentially, resulting in hundreds of thousands of Americans making money. The Stock Market was doing so well that the banks in the US gave out a significant amount of loans in order to allow individuals in the US to invest more.
However, this came crashing down with the Stock Market Crash of 1929. Millions of Americans lost money in the stock market. Families became homeless thanks to their irresponsible spending during the 1920s. Banks were forced to close, as they ran out of currency (aka money). The 1930s bust was a response to the reckless spending of Americans during the 1920s.