Today is blog discussion day. We talked about the Causes of the Stock Market Crash and how buying on margin caused the Stock Market to crash. Also, how the 1920s were the era of buying on margin and how buying on margin brought common people into the stock market. There was an uneven distribution of wealth because the middle class and lower class bought shares of stock on margin and going into debt because of it. Banks were way too lenient on giving people loans with low interest rates in order to buy stock. Stock prices were inflated grossly and didn't have real value which mislead people into thinking that the stocks were worth much more than they actually were. The government also didn't do a very good job regulating the stock market.
We talked about the causes of the Great Depression and how the "vicious cycle" is very tough to get out of and get it turned around. Mr. Bruns said that the best way to get out of the cycle is to spend money. Also we talked about how elderly people these days sometimes stash their money around the house instead of using banks because of how the Great Depression affected them.
Stock Market Effects:
-people lost their jobs
-the Great Depression
-businesses lost millions of dollars
-people stopped spending money
Chapter 14 Test Topics
-- Causes of the Stock Market Crash
--Causes of the Great Depression
1. 1928 Election(466)
2. Stock Market in the 1920's(466-468)
3. Story of the stock market crash-not the causes(467-469)
4. Banks and business' collapse(469)
5. Effect stock market crash had on other countries(469-471)
6. Depression in the cities(472-473)
7. Depression in the rural areas(473)
8. Dust Bowl(474)
9. Men in the Streets(475)
10. Women struggle to survive(475-476)
11. Children suffer hardships(476)
12. Social and psychological effects(477)
13. Hoover's background
14. Hoover's philosophy/Cautious steps(479)
15. Boulder Dam(480)
16. Democrats win 1930 Congressional elections(480)
17. Hoover takes action(481)
18. Bonus Army(482-483)
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