blog discussion day.
in 1920's the stock was going up.
margin buying.. was buying stocks on credit.. let them buy consumer goods.. and the poor could have nicer things.. unstable. and at the end most poeple lost their money..
if stock prices go down people panic.. banks started investing money into the stocks.. in order to make themselves money.. without your permission to use your money.. 3% of the people in the 1920's were actually involoved with the stock market..
speculators bought stocks and bonds and sold them very quickly.. no matter what the risks.
by the late 1920's people quit buying things. companies arent making money, and people lose their jobs. and there is a reduction in the making of things.. or they just shut the company down..
when people dont save and go spend on luxuries and then people would be buying goods and then companies would make more money, and then people start increasing jobs..
alot of people were buying alot of stocks and were also buying on margin. when the stock market crashed people paniced.. rich people on Wall Street bought all the stock.. tried to sell all their stocks to avoid debt and when they couldnt sell then the prices had to keep going down and then they would go into debt.. and millions of stocks were never sold and so those people went into debt.. banks would close becoz they'd run out of money.. and a large percentage of banks did close down.. when people tried to get money out of the banks they'd fnd out that the banks had used other peoples savings in the stock market.. and so people lost a lot of money.. and the suicide rate went up during the 1930's..
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