Anything is possible; however, there are key differences between today’s economy and the economy of 1929 that make such a scenario improbable. Some of those differences are as follows:

• The largest percentage of investors in today’s stock market are institutions as opposed to individuals, and the vast majority of these institutions are prohibited from buying stocks on margin.
• Aside from social security, there are IRAs, Keoghs, 401Ks, and a host of other plans whereby people can set aside money for retirement. These monies are regularly committed to the stock market.
• 2005 estimates indicate there are five times more people in the pre-retirement saver category (60%) than there are in the 65+ age category (12%). That means there are five times more people putting money in than taking it out.
• Brokerage accounts are insured.
• Savings accounts are insured.