Crash of 1929Any more causes?people were just really really really optomistic about everything, they never thought that the economy could crash.Story of the Crash?five days before the crash Lamont wrote a letter to President Hoover saying how the economy was doing terrific and that there was only one way the economy would go, and that was up. While Hoover and many other people began to celebrate the 50th anniversary of the invention of the lightbulb on October 21st, the stock market was coming to a giant crash!!! Nobody was able to get any bids on their shares of stocks. Richard Whitney placed an order on 10,000 shares of steel, each a higher bid than the other. He ran around screaming more bids more bids and for the remainder of the people peopl felt okay. The next tuesday was horrifying!!! Stocks declined rapidly, people lost money even more rapidly. It was like trying to stop Niagra Falls. Although everyone else was losing money Jesse Livermore made more money that day then he had ever made before.What is pooling?Rich people would buy stocks- inflate them- and sell them. They would buy these stocks at dirt cheap prices and then convince the buyers that it was worth it and they would sell them for way more then they bought them.What did the Federal Reserve Board do?They met about everyday , but they didn't release any statements to the public. Their thoughts were that it was all based on borrowed money. On March 26th many investors were in huge debt and got themselves in big time trouble!! So the FRB rose interest rates which only made it worse.I dont really know what else to type...
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