Today we are going to talk about the Stock Market Crash.We are also doing our blog discussion.We viewed different graphs about how the stock market crashed. We also saw how stock dropped over the time period from the early 1920's and later. In the 1920's, the Dow Jones Industrial Average was the only way that people were able tell how economy was doing. By 1933, the unemployment rate rose to 25 percent.We discussed the cycle consumption. If nobody wants to buy anything, then the companies won't make as many things. With production down, the company doesn't need all their workers, so some would get laid off. If you don't have a job, then you obviously won't have any income. That leads to the person without a job to stop buying as many things.Causes of the crash-overproduction of goods-buying on margin-uneven distribution of wealth in 20's-no laws on the stock market-a lot of fraud-federal reserve policy failed-they raised interest ratesEffects of the crash-Great Depression-businesses closed down-banks closed down-people lost millions of dollars-businesses cut some of their employeesThe Stock Market Crash of 1929Causes- people were buy things on credit and they wouldn't end up paying for all of itStory- On October 29, everyone wanted to sell their stocksMany of the very wealthy people tried to save the stock market by investing millions into itSome of the people that were losing all of their money committed suicideEffects- In March, a lot of people started to sell their stockswith the start of baseball, many people started to forget about the struggling stock marketsteel production and car selling were decliningin the summer of 1929, some stocks doubled in valuePooling- wealthy investors would pool there money together to buy a stock, inflate it, and then sell itFederal Reserve Board- They didn't do anything about the crumbling marketthey rose interest rates
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