The Crash of 1929Today we continued to watch the movie and look for these questions throughout the movie. These are the questions that I did not fully get answered yesterday.2) Story of Stock Market CrashOn October 29, 1929 everyone wanted to sell their shares and a lot of people did not want to buy shares even though the prices were terribly old. Everyone was panicing and trying to sell their stocks as fast as they could. A lot of wealthy tried to stop the stock market from crashing, however they ultimately could not stop the crash from happening. Many people lost so much money that the wealthy people had to find out what the real world was like and get many new jobs.3) What is Pooling?Investors would pool their money and increase the price of stocks and then sell their stocks to the unsuspecting public. The poolers would advertise the product that they pooled their money, so more people would want to buy the stock. After the prices went up a lot the wealthy people sold their stocks and soon after the stocks would collapse because the wealthy were no longer buying stocks for this certain business.4) What did the Federal Reserve Board do?The Federal Reserve started to finally see how bad the borrowing of money actually was. The raised the interest rates so that people would stop buying their stocks on credit. This made the people nervous, so they started to try and sell all of their stocks. Other people did not want to sell their stocks and continued to borrow money which made the interest rates continue to go up.
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