system
Given the following post, respond as if you're commenting on Reddit:
human
The stock market crash of the 1930s.

Bonus points for explaining the reasoning of the  implementation of the federal Reserve as I've been told that it was put in place to prevent the stock market from crashing again.
gpt
Well, everyone believed that they could make huge amounts of money from the stock market, so they borrowed thousands of dollars from banks, using this money to invest in the stock market. However, they had to be able to make enough from the stock market to pay off the interest on their debt. For one reason or another, the value of stocks began to drop, and since people had borrowed so much from the banks to invest in the stock market that they tried to sell all of their stocks-they didn't want to end up losing money. However, since everyone wanted to sell their stock, and no one wanted to buy, the price of the stocks continually went down, as people tried to undercut each others' prices, hoping someone would buy their stocks.

Eventually, people couldn't pay their debts, so those with money in banks panicked as well and ran to the banks to withdrawal their money from the bank. However the banks did not anticipate this, and did not have enough money on hand to give everyone all the money in their bank accounts. Many banks were forced to close, and those with money in those banks lost everything they had.

EDIT: The Federal Reserve was implemented to prevent bank panics as stated above. Basically, if a bank doesn't have enough money on hand for a withdrawal they take a loan from the government, and are able to give people their money back, even if the bank is forced to close.