We are finishing the movie and having a work day.
The Crash of 1929
Video Questions
1. What is pooling?
People would but stocks and keep them until the prices went up. Then when the prices went up they sold them before they went back down. The rich guys buy them for cheap then sell them for WAY more to the average joe. Buying stuff on Margin basically.
2. What was the Federal Reserve Board’s take on the booming stock market?
The distrusted it and thought it was dangerous and wreckless cause it was based on borrowed money.
3. What did the Federal Reserve Board do to prevent the crash?
They didnt do anything at first, then later they rose intrest rates.
4. What did Charlie Mitchell and several other Wall Street tycoons try to do to stop the crash?
Charlie provided money and allowed people to borrow the money from this bank. He mad money available for cheap credit. Rich people went over a brought ALOT of stock and everyone began to think the stock market was over for that day..
5. What were the causes of the stick market crash based on the video?
There were no government regulation and alot of pooling was happening. The federal reserve board didnt help to put confidence in the Stock Market. The prices of stocks were sky high and when people were selling but no one would buy and everyone would buy when the prices were low.
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