Monday- Went over this weeks new forum's. Stocks-are when you buy a piece of a company Stock market-place to buy stocks Consumerism- the belief that people need to spend money to help us thrive Buying on credit- bank gives you money to buy something then u pay them back later Rug-id individualism- you do what you want and face the consequences Trickle down theory- a theory that financial benefits given to big business will in turn pass down to smaller businesses and consumers Dow Jones- average value for a stock for the 30 major companies buy on margin- buying stocks on credit
Tuesday- Were going over the Dow Jones and how it has rose due to inflation over the years. Watered stock- Pretty much over priced stock/had lots of this in the 20's Stock pooling- A group of investors come together to buy stock and make lots of money/ Stock brokers use to but loads of stock then sell sell to dramatically change the price of stock. Insider trading- selling to people who have no idea what your talking about. Federal reserve board- They supervise banks and stock market. They increased the interest rates hugely right before the crash. They new this would stop people from buying.
Wednesday-Today we are going to go over capitalism and and the stock market crash. Some of the main causes of the stock market crash include over priced stocks which we call watered stock. Lots of people bought on margin in this time which led to loads of people being in debt. People thought the stock market was gonna just keep going up but they were obviously wrong. We had many business over processing there goods which were driving the prices down. Most people weren't buying things anymore because they were in debt from buying on margin. Banks were also giving people way to much burrowing power.
Thursday- First we are going over the bomb threat from yesterday. We are going to watch a video next on J.p. Morgan.
Friday- Today we are going to go over not just the crash of the stock market but its affects. Most investors and business lost millions of dollars obviously. This led to lots of lay offs, so even if you weren't in the stock market it can still affect you extremely. This led to unemployment and that meant people stooped spending money and this leads to the great depression. This wasn't just for the us either it sent in over in Europe also. Businesses and farmers were overproducing goods by far this made deflation sky rocket. There were very high protective tariffs in the 1920's.
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Good!