1920’s appeared to be a decade of unlimited prosperity. The widespread prosperity few people warned of problem within the U.S. economy.

Credit: the federal government encourage this borrowing by keeping interest rates low during late 1920s. Easy access to credit enabled consumer to buy goods when they did not actually have the money to pay for them. Industries’ increasing reliance on customers who made purchases with credit concerned some economic experts. These experts noted that in an economic downturn, such debt could cripple consumers. Consumers ignored these warnings and continued to purchase automobiles, radios, and appliances on credit.