Today in class we first talked about the grades and then he talked to him about the message board posts. We then did a quick review of yesterday with some additions.Causes of the Stock Market CrashPeople stopped buying things. Buying on credit so they were in debt and the Federal Reserve started raising taxes so people got nervous. Uneven distribution of wealth, the rich get richer and the poor get poorer. Stocks were overpriced so people were overconfident and they didn’t show true value of the company. Overproduction of goods, people were making too much stuff. People were buying stocks on margin, which was basically buying stocks on margin. Massive fraud and illegal activity, there was no regulation of the stock market, where the rich took advantage of the commoners.Some effects: People lose money and savings, unemployment goes up, people quit buying which sends us closer to the Great Depression.Causes of the Great DepressionEmployment->Income->Consumption->Production… RepeatWe also watched a video called the Crash of 1929.1. What is Pooling?2. What did the Federal Reserve Board do?3. What caused the crash?
Comments