today, we went over things that others did not understand; hyperlinks, message board, e-edition, etc.the book causes of the crash;>overspeculation during the 1920s-demand of paper was more than company was worth-drove prices up>overproduction of goods-made too much-companies wasted money, gained none>buying on margin-buying on credit-helped commoners buy stocks-stocks going up was based on borrowed money>uneven distribution of wealth in the 1920s-most people didnt have money because they bought on credit-rich got richer, poor stayed same>too much borrowing from banks-did not pay back loans-many were in debt, couldnt buy things>stock prices grossly inflated; did not have "real" value-due to buying on margin and over speculationmassive fraud and illegal activity-no rules/law regulating stock markey-rich guys too advantage of common to make money [now illegalfederal reserve policy-should have risen interest rates-cause people to borrow money-they didnt pay-shouildnt have gave out money to certain people-late people quit borrowinginvestors and businesses lose millionsthousands of banks fail, savings wiped outbusinesses cut production, lay off thousands of workersunemployment rises. comsumer basedrops furthereconomic construction in the united states spreads to europegreat depression sets inMOVIEwhat is pooling?what did the federal reserve do during this whole situation, policy, reaction?what caused the crash?basics of the days, the story.
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