Blog discussions today!\
1928 presidential elections - Herbert Hoover and L. Smith. It was Hoovers first time running. Before he ran he was a stay at home nurse. Al Smith was a governer of California. Big issue was Coolidge was anti prohibition. Hoover won this election because of prosperity with an easy win. He wanted to change economic parties. He said everyone would be wealthy and we would be permanetly prosperous. Most americans agreed. It wasn't until the 60's when the south became republican. Americans became free.
Stock Market in 1920's - a piece of paper which says you can buy into a company. The reason it kept going up because people thought we were under prosperity. Balloon Payment - having to pay the whole amount at once, it led into margin buying - allowed average consumers to buy stock. The problem was if stocks went down the stock broke would need money back because people couldn't pay it back. Banks closed causing people to lose life savings. Market was booming - record stock prices hit record levels. Speculation - buy and sell quickly it creates demand prices went up. Prices were over inflated.
Stock Market Crash - When the crash happened, the clock ticker was lagging so people were quickly selling their stocks. Stocks went down in value - no one was buying so the paper was worth more than the company. The Dow Jones Industrial Average is one of several stock market indicators created by Charles Dow. Many people lost their savings. Banks invested people's money into the stock market. The week prior to Stock Market Crash - on black Thursday - major crash - 4 million shares but 12.9 millions shares were traded leading up to black Tuesday - Charlie Mitchell, Chase Bank - J.P Morgan Bank bought lots of stocks - over the weekend stock people decided to sell their stocks.
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