Today we continued to watch the movie, The Crash of 1929.The Crash of 1929Movie Questions:1. Causes2.Story of SMC3.What is pooling?4. What did the Federal Reserve Board do?1. During this time people were very optimistic. Other than that I think we covered a lot of the causes in class.2.If the there is a great demand for an item the stock goes up if there is not a great demand the stock goes down. People who had stocks that did well were extremely wealthy. There was hope in the beginning. Things were looking very good. The economy was changing. There were all sorts of new technologies. Buy now and pay later had become a way of life. The economies in the twenties were thought to lower the economy instead there was a boom. During the twenties everyone were trying all sorts of money schemes. May 29, people were borrowing more money than ever to buy stocks. Everyone was talking about the market. They were looking for the lucky break. The slogan for that summer was “Buy”. A famous tune then was “I’m in the Market too”. People were becoming addicted. Robert W Barson wrote an article saying a crash was about to happen and it did. People were full of fear and greed. They wanted to make more and more. Then if they market would fall ten points they would become frightened and sell there stock. The 24, was the first black Thursday and it took a tumble. Some people couldn’t get any bids for their shares. Morgan was putting his money in and bidding. It had put a stopper to the crash for that day. On Monday things did not go well. People thought it would be safer to get out. Tuesday was worse. It was like trying to stop Niagara Falls. Everyone was selling. There were absolutely no buyers. The bids were about as high as 3 dollars. Some committed suicide because they were so devastated. It was such a hard time for lots of people.3. The wealthy people would buy stocks and inflate them. Then they would sell them saying how good they were and others would buy them for more than the first purchaser had bought them for. Again they would buy more stocks for very cheap prices and sell them again.4. The Federal Reserve Board thought it was a shaky foundation of borrowed money. They were silent about what they were going to do. It scared people. The market then rallied and The Reserve Board raised the interest rate. Charles Mitchell was trying to stop the crash. He succeeded in ’29.
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