1/15/10

[4Austin K]

Today, we watched the Crash of 1929. We took notes and Mr. Bruns warned us about loosing our blogs online and then start typing them on word and copy and paste it into the internet.We continued watching a movie today called "The Crash of 1929," it's about the Stock Market Crash and some of the causes of it.The Crash of 1929:1. Causes.2. Story of the Stock Market Crash.3. What is pooling?4. What did the Federal Reserve Board do?1) Some causes of the Stock market crash were:People were buying everything on credit, and they got into a lot of trouble with debt problems.The people, who followed the millionaires and billionaires, always bought the stock and then they ended up having stock in a crappie share loosing a lot of money.Large sections of the population were becoming poor.The economy, Stock markets had nothing to do with prices.Prices were going up in the Stock Market and it raised prices and people kept buying and then the market became self-running.Rodger Babson said the stock market would have a massive dip and then there would be a crash.People were trying to get away from the stock market before it crashed.2) The Story of the Stock Market Crash:Stock tips came from everywhere.People followed the Stock ways of millionaires and billionaires and how they bought and sold stock.One of the big things of the stock market in 1929 was that it was not controlled and people could rig it so they could and it raised the stock to high amounts and then sold it to make large amounts of money.Roger Babson said there would be a crash of the stock market.Al Capone said there would not be a crash.Business was good on Valentine's Day 1929.Charley Mitchell singly stopped the Crash on 1929 in early 1929.In June, the Stock rose 52 points and in July it rose another 25 points.Brokers were placed on ships for long trips.September 3, 1929, the Stock Market reached an all-time high.October 24, 1929, high noon, many people started trying to sell large shares for a lot of money and they were not getting any bids for their shares.Many people who bought their stocks on margin had no money because so many of the stocks had lost more than the ten percent they put into the stock market.Many people believed that since Morgan put his money into the Stock Market, the crash was over.People were in a large panic and were running around like chickens with their head cut off.Jessie Livermore made more money on October 29, 1929 than any other day before.In the 1930’s, Charles Mitchell was 12 million dollars in debt.3) PoolingPooling is when people buy stock to raise the price and make a large amount of money when they sell it.People would raise the price on stock by trading between themselves and then sell to make the stock worth very little.People push up the RCA price over 50% and made themselves rich buy selling it.4) What did the Federal Reserve Board do?They raised the taxes to the raise money for the people buying on credit.