I was in my teens during the down fall, but I remember wishing that I had just a few hundred dollars. If I had just a few hundred dollars, I could have bought a book or two of stock. I understood that it was unlikely that many of the business would actually go under and I wanted to buy in while they were on discount. Saddly, I was a teen and had no such money.
Stock wasn’t the only thing on discount. The price of homes were also dropping like crazy. Mortgages were being foreclosed left and right. The situation was so dire that get-rich-quick schemes were flourishing more than before.
One of the causes of the financial crisis (one of MANY) was that people were “flipping” homes which drove the price of a house sky high. Did this stop when the bubble burst and prices were falling back to earth? No. This was the height of the house flipping schools. During the worst of the disaster, the “instructors” were saying that foreclosed homes were the best because you could buy them for pennies on the dollar making them more profitable.
It is amazing what people will believe when they get desperate enough… or when everyone else is doing it.