Today we have presentations.
What were the causes of the SMC and GD?
during 20s stock market was booming!
no one thought it could go down.
stock-share of ownership over a countryWhen companys start profiting so does the person who bought stock from that company
stock market is where you can buy and sell stock
Causes: Buying on credit-People would use money that they don't have, the bank has.
overvalued stocks- being sold for way moe then they were worth. if stock was going up but the profiting of the money is going down. of the company is loosing money and stock is goin up, Just doesn't make sense. (overvalued stock)
Buying on Margin-allowed ire mffke ckass oeike ti unvest large amounts of money into the stock market.taking an loan out on a car with "promised" money thats not there. when stock started goin down, say you have 900 dollars of stock. and the stock market was goin down and so everyone wanted to sell there stock and usually only used by rich people.
no government regulation- not set good enough regulations for banks. o requirement for minimum capitol to start bank had been made. no limit to how much banks could lend out had been set.
news- October 24th-29th, 24th-lost 11% 28th-additional 13% loss 29th-loss another 12%. slow path to recovery. theyre were rich guys that thought they could stop and save the stop market. charlie mitchell tried to go in and stop all the stock market crashing. but he came out with no money at all!
once everyone found out about the crash in wall street so everyone started selling everything!!
What impact did the SMC and GD have on the lives
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