January 30th-
Finishing up 1920's project:
Stock Market Crash-
Stock- a financial instrument that you can buy a share of it, business let it out to buy. A stock is a type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings. Stock market- Market of exchanging stocks (happens in walstreet, New York in the united states today). Stock Market Crash- a sudden dramatic decline of stock prices across a significant cross section of a stock market resulting in a significant loss of money causing mass panic. Credit Boom- a rapid expansion of lending by financial institutions- banks kept loaning money out to people but people weren't able to pay loans back so the bank got to keep their stock and the owner loses it. Buying on the Margin- you could buy 10%-20% of a share and meant you were borrowing 80%-90% of share. Margin Millionaires were people that got tons of money. So once the stock profits fell it wipes most of them because they owed large amounts of money (stock market prices going up). Mismatch between production and consumption: meaning over production, companies were making all of the productions, people were unable to buy all of these things once they lost all of their money in the crash, there were a lot of left over products. Weakness in the bank system: 30,000 banks in america were prone to becoming bankrupt if they were to run out of funds/deposits. Many banks in rural area went bankrupt due to agricultural recession (over production in farm goods). Over View of stock market crash: October 24, 1929- 12,894,650 shares were traded. October 29, 1929- Wall Street investors traded in 16 million shares. Billions of dollars were lost and thousands of investors wiped out. Unemployment before- 1,550,000 people. Unemployment After- 12,830,000 people (at peek of depression). Over half US banks were shut down. William Durant lost all his money trying to stop stock market crash. The bounce back- Jan. 33 it got back up because new president, and it went back down, eventually there was WW2 that got us out of depression and in 1955 it went all the way back to normal.
1920's notes-
Nicknames of 20's- The roaring 20's- it was an age of discovery and economy was booming, Republican Era- 3 rep presidents, The jazz age- jazz took off, the lost generation-when you come of age because a lot of them were lost fighting in the war , boom to bust- started at slight bust, big boom, ended in a bust, decade of normalcy- America first, prosperity Decade- prosperous, Prohibition Era- alcohol was banned, The advertising Age- showing all of the new inventions, aimed at women, the golden age of sports, era of permanent prosperity- to be peaceful and everyone have what they need. Know what red scare is and why it happened, there was 2 of them. Communism-dictatorship, equality, don't have a lot of freedoms Karl Marx- German who came up with this theory and he hated capitalism (theory- believed we could do better, moral, and injustice). He called for a rise up to be equal) The middle and lower class will take over rich and everyone be equal. Russia becomes first communist country. Lenin was only in power for 2-3 years, Joseph Stalin took them in different directions and started killing tons of people because he was afraid.
Comments