<u><em>According to the historians</em></u>, <u>what triggered the fall of the stock market were these nine factors interacting with each other under debt conditions</u> (<em><u>Obligation that a person has to pay or return a thing, usually money</u></em>), <u>and deflation</u> (<em><u>Situation of excess supply that can cause a generalized decrease in prices or an economic recession</u></em>), <u>to create the mechanics of boom and bust</u>.
<em><u>The chain of events proceeded as shown below:
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<u>1.- Liquidation of debt and forced sales.
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<u>2.- Reduction in the money supply because the bank debts were liquidated.
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<u>3.- A fall in asset price levels.
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<u>4.- An even greater fall in the total value of companies, precipitating bankruptcies.
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<u>5.- A fall in profits.
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<u>6.- A reduction in production, trade and employment.
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<u>7.- Pessimism and loss of confidence.
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<u>8.- Accumulation of money.
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<u>9.- A fall in nominal interest rates and a rise in interest rates adjusted for deflation.
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