Video again today.
the people talking in it look like theyre gonna keel over any minute.
1. What is pooling?
rich guys bought cheap stocks en masse, causing their value to go up, then selling it when they decided it was high enough. they would get off with a lot of money. then since the stock prices were overinflated way above the value of the company, it would crash, and some unlucky guy holding the stocks at that time would get a whole lot of debt handed to him.
2. What was the Federal Reserve Board’s take on the booming stock market?
they distrusted the boom- looked down on it. saw the speculation as reckless and dangerous, because it was based on borrowed money and margin. but when asked for a public statement, they stayed slient, because the economy was now dependent on borrowed money.
3. What did the Federal Reserve Board do to prevent the crash?
they did nothing at first. stayed silent. (this scared people, made them sell stocks and not buy them). federal reserve eventually raised interest rates 20% (really high, made borrowing money totally unaffordable)
4. What did Charlie Mitchell and several other Wall Street tycoons try to do to stop the crash?
charlie mitchell's bank bought $25 million worth of stocks, making it affordable again. for the near future, at least. (march 1929)
5. What were the causes of the stock market crash based on the video?
people were really in debt, and large sections of the population were super poor. fraud. way too much confidence.
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