The stock market represents bedrock of American society – capitalism. The stock Suppose an individual invested $1000 a year every year from 1925 to 2000 in companies that revolutionized 20th century – AT&T, Ford, General Motors –, their estate would have grown to more than $$69,559,828. (This assumes no additional deposits and an average rate of return of 12.70%)

The average American enjoys enormous accumulation of wealth/capital/money via stock market. This wealth/capital/money has given them freedom; hence they are very concerned about upward and downward spiral of market.

The Great Depression caused largest economic slump in industrialized nations ever. The Great Depression began in 1929 when stock market collapsed. Stock market values dropped eighty percent. Not only did individual investors lose big, so did banks. Many banks had a large chunk of stock in their asset portfolios. So much so that 11,000 banks out of 25,000 collapsed in U.S. alone. Individuals lost on three fronts. They lost money in stock market, in bank and their jobs. The burgeoning manufacturing industry saw a 54% drop in output causing 25 to 30% of workforce, approximately 12-15 million people, to go on layoff.

With so many people out of work, breadlines and soup kitchens became common place. People had no money to feed, clothe or house themselves. Unfortunately, government did not have resources to help them either. The impression of Great Depression has been firmly imprinted on minds of individuals, ages 60 to 93, born 1912 to 1946. Most have vowed to themselves they would never again suffer lack they suffered during Great Depression. Hence, these individuals are frugal; budget conscious savers who disdain credit and speculative investments. They sought safety of guaranteed investments and security of insurance companies who weathered Great Depression. With evolution of Federal Deposit Insurance Company (FDIC), they spread their money across several banks. Although they have money in banks and stock brokerages, they do not really trust banks or stock brokerages. They trust FDIC and SIPC (Security Investor Protection Corporation).

The financial industry evolved around financial behaviors of these Depression Era individuals. These individuals amassed greatest amount of wealth in history of United States. Because they were solely afraid of suffering another Great Depression.