At the beginning of history class today we continued talking about the stock market crash and the great depression.Causes of the Stock Market Crash-Over speculation during the 1920s-Overproduction of goods-Buying on margin-buying stock on credit.-Uneven distribution of wealth in the 1920s-Too much borrowing from banks-Stock prices grossly inflated; did not have “real” value.-Federal Reserve PolicyEffects of the Stock Market Crash-Investors and businesses lose millions-Thousands of banks fail, savings are wiped out-Businesses cut production, lay off thousands of workers-Unemployment raises consumer base- Economic contractions in the United States spread to Europe-The Great Depression sets inCrash of 1929 VideoFour Questions based on the movie.1. Causes2. Story of SMC3.What is pooling?4. What did the Federal Reserve Board doAnswers…1. People were buying a lot, but when they were buying they were buying on credit. Banks were losing money.2.3.4.
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