We are going to finish discussing the causes of the stock market crash. Over speculation during the 1920's which is speculating land and their goals were to survey the land and take it and sell it. Over production of goods. Buying on margin. Uneven distribution of wealth in the 1920's Too much borrowing from banks. Stock pirces grossly inflated; did not have "real" value. People were in debt from buying on credit. Massice fraud and illegal activity. A number of people think that fraud and illegal activity was a wide cause of the crash. Buying on margin was another cause. Which is buying stocks on credit. Effects- Banks close, People lost life savings investors and business lose millions. Thouseands of savigs wiped out. Cut production people lose their jobs. Unemployment rises. Economic contractions inthe united states spreads to europe.Crash of 1929 video.Story of SMC-Pooling- Raising stock prices so high and then selling them to a ton of money.
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