The economy actually turned up in 1930 with government and business spending more then in 1929. However, the consumers were the main drag which propelled the economy into a depression. The Great Depression did not come overnight with everyone suddenly unemployed and homeless. It came through several downsteps and, along the way, many persons attempted to predict a bottom. Each person was proven wrong. Will history repeat? http://en.wikipedia.org/wiki/Great_depression Quote from the Wikipedia: "The Great Depression was triggered by a sudden, total collapse in the stock market. The stock market turned upward in early 1930, returning to early 1929 levels by April, though still almost 30 percent below the peak of September 1929. Together, government and business actually spent more in the first half of 1930 than in the corresponding period of the previous year. But consumers, many of whom had suffered severe losses in the stock market the previous year, cut back their expenditures by ten percent, and a severe drought ravaged the agricultural heartland of the USA beginning in the summer of 1930." "In early 1930, credit was ample and available at low rates, but people were reluctant to add new debt by borrowing.["