1-29/2-2

[6Amanda]

• Stock Pooling

1. Illegal  now
2. Rich people play the stock market like a game
3. RCA pool
4. Led to watered stock value (way overpriced)

• Speculation-with stocks
• Income inequality

1. Leads to people losing money 
2. No longer buying things

• Black Tuesday Oct. 29th, 1929

1. Lead into Great Depression
2. Suicide rates went up

• Federal Reserve System

1. Created in 1913 under President Woodrow Wilson
2. Major goal was to stop banking panics
3. Broke the country into 12 districts each with a Federal Reserve Bank
4. Banker's Bank-stop bank runs
5. Controls the amount of money in circulation
6. Controlling inflation and deflation
7. Controls interests rates for borrowing money
8. Encourages people to borrow money for big purchases-homes, cars

• Causes of the Stock Market Crash - 1929

1. Stock Prices were grossly inflated, did not have real value-watered stock prices
2. Overspeculation during the 1920s
3. Led to overpriced stock
4. "Buying on Margin"
5. Led to people being in debt and watered stock prices
6. Overproduction of goods
7. Uneven distribution of wealth
8. Too much borrowing from banks
9. Federal Rserve increased interest rates
10. Lack of government regulation

• Effects of the Crash

1. Investors and businesses lost millions $$$
2. Business cut production-laid off workers
3. Unemployment rose-people quit spending money
4. Great Depression started
5. Depression spread to Europe and other parts of the world

• Causes of the Great Depression

1. Overproduction of goods
2. Underconsumption of goods by consumers
3. Agricultural slump in 1920's due to overproduction
4. High protective tariff policies of the 1920's
5. Taxes benefiting the rich-Trickle-down
6. Stock market crash
7. Banks closed

• Effects of the Great Depression

1. New Deal programs start-makes the US government much larger
2. Deficit spending starts
3. The New Deal created many organizations that are still around today-social security, welfare
4. Fascist, military and communist dictators come to power throughout the world

• The Vicious Cycle of the Great Depression

1. Companies lose $$ so they lay people off 
2. Unemployment rate goes up and less people buy goods as income has dropped
3. Companies profits fall so they have to lay more people off or close
4. Cycle repeats itself

• Okies

1. They packed up and tried to travel
2. Specifically from oklahoma
3. Moved west

[Mr. Bruns]

You are missing week 3.