Today we first talked about some of the causes as well as the effects of the stock market crash. Some of the causes that we talked about included that their was no regulation on the stock market. Uneven distrabution of wealth made the wealthy people wealthier and the poor people poorer. The stocks were also overpriced and did not actually show how well the business was doing. The Federal Reserve also started to raise taxes which made the people nervous.Effects:Investors and businesses lose millionsThousands of banks fail, savings are wiped outBusinesses cut production, lay off thousands of workersUnemployment rises, consumer base drops furtherEconomic contraction in the United States spreads to EuropeThe Great Depression sets inNext we were going to discuss the causes of the Great Depression, but Mr. Bruns had to get a video back to Murtaugh, so we are now watching a movie called the Crash of 1929.The Crash of 1929Next we began watching a Movie Called the Crash of 1929. We are supposed to look for the answers to these questions.1) CausesThe Stock Market was not controlled, so people could manipulate the prices of the stocks. Wealthy people were also pooling their money in a company, but after the prices went up they would sell their stocks. After they had withdrawn all of their stocks the stock would collapse.2) Story of Stock Market Crash3) What is Pooling?Investors would pool their money and increase the price of stocks and then sell their stocks to the unsuspecting public. The poolers would advertise the product that they pooled their money, so more people would want to buy the stock.4) What did the Federal Reserve Board do?
Comments