Jan 28 - Feb 1

Impact of cars

  • Ford was the biggest company in 1920s
  • Roads and gas stations started appearing
  • 1900 - 1920/8000 - 8000000 cars
  • Fast food/drive through started being created
  • Cleaner streets
  • More job opportunities

Charles Lindbergh

  • Became first man to fly across Atlantic nonstop
  • Left college to become a barnstormer - did tricks and other stunts to advertise his fame
  • Went into the army
  • Flew mail from state to state
  • He flew from Paris in 33 1/2 hours
  • He was one of the biggest celebrities of that era
  • Two year olf son kidnapped
  • Bruno Hauptmann was convicted four years later
  • Lindbergh law - outlawed kidnapping and helped inform cops of the risks
  • Died of cancer August 26th, 1974

Amelia Earhart

  • Wanted to be first woman to do everything
  • First bought the Canary plane
  • First woman to fly across the Atlantic
  • New record for flying 18,415 feet high
  • Flew from Hawaii to California
  • She wanted to see the world, and had 7000 miles left then went missing
  • Papua New Guinea possible crash location
  • Wreckage has corroded and been underwater too long to identify whether it was hers or not

Plane uses

  • Mail from state to state, sometimes cargo, training, entertainmet, new records, no mass transport till 60s

Nascar

  • Prohibition started NASCAR
  • Runners ran from cops who transported/sold alcohol
    • They enjoyed it and it built up into what it is now
  • First race in Daytona Florida along beach
  • Red Byron won the first official race in a Ford

BIG QUESTION: Causes of stock crash

Stocks

  • A small part of a company
  • When the stocks are good, your money makes more money

Before crash

  • Everything was good/for a lot of Americans
  • People had cars
  • People bought on credit a lot
  • Stocks plateaued 

Crash October 29, 1929

  •  Caused by rich men buying stocks for a couple dollars and selling for a lot more
  • Buying on margin from a broker (like credit)
    • 100 down get 900 from broker = 1000
    • Big problem
    • Stocks were overvalued
  • People buying on credit (not paying back)
  • Loans kept going out but the banks closed because they couldn't get the money back
  • Pooling: no regulation on stocks
    • Rich people would pool their money together 
    • Pay off the NYT and make people invest in the new company
    • The ones that bought it for cheap sold it for a lot more
    • 1,000,000,000 in two weeks
    • Drove stocks up in a fake way
  • Federal Reserve Board created by Wilson
    • Bank crisies were helped by the FRB
    • Banks bank there
    • They saw the situation and knew they had to do something
    • People kept buying and buying
    • FRB realized it was a bad situation
    • Rose interest rates
  • The crash almost had to happen
  • People say we're still overvalued

After

  • People tried to get out quick
  • They were once millionaires and now peniless
  • 30% unemplyment rate
  • People put almost everything tey had into it
  • Families lost jobs and couldn't provide for their families
  • Giant panic
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