What situation contributed to the economic problems of the late 1920s?

The 1920’s was marked by drastic events in the U. S economy. After a decade of very high economic growth and boom in manufacturing (the Roaring Twenties), the Wall Street stock market began to slide down on October 24, 1929, and by November stock prices lost as much as 40% of its value. The drop was caused by overproduction of agricultural produce. The resulting oversupply caused farmer’s incomes to drop. People also purchased stocks using borrowed money, which contributed further to the slide.