Today we finished watching the video, and then we had to work day to ressearch our topics (Federal Securities Act & Indian Reorganization Act).
Questions for the video:
1. What is pooling?
Pooling is when people would take advantage of the stock market by buying a stock, wait for it to raise, and then sell it before it fell.
2. What was the Federal Reserve Board’s take on the booming stock market?
The board distrusted the boom, and they knew thatour economy was based on borrowed money which they knew was bad.
3. What did the Federal Reserve Board do to prevent the crash?
They did nothing to prevent the crash even thought they knew it would most likely occur until they eventually raised interest ranks, but it didn't do much.
4. What did Charlie Mitchell and several other Wall Street tycoons try to do to stop the crash?
He loaned people a bunch of money from his bank for cost to them, so they could put some into the stock market and gave some relief to the people. On Black Thursday, they started loaning out money like they had done before for people to buy more stocks, and then they started buying stocks themselves to try to stop the crash on Black Thursday; they did stop it for that day.
5. What were the causes of the stick market crash based on the video?
The causes were a lack of government regulation and prices being cheap due to pooling.
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