We continued going over assigned blogs today. Mr. Brun's finished grading third hour's websites and he will grade our's starting Monday.Causes Of The Stock Market Crash*Overspeculation during the 1920's.---speculating of land to buy, and then sell.*Overproduction of goods.---companies were making too much. people stopped buying things because they already had it or were in debt for buying already. or too poor to begin with.*Buying on margin.---like buying stocks on credit. throughout the 1920's, this was great. alot of the value of the stocks was based on borrowed money(stocks did not have real value). this allowed alot more people to speculate.*Uneven distribution of wealth in the 1920's.---rich got more rich, the poor got more poor.*Too much borrowing from banks.---banks were giving money out to people that they should not have been giving money to. the people who were given money did not pay the banks back.*Stock prices grossly inflated; did not have "real" value.---all the people were focusing on were making a quick dollar. companies profits were going down, stock prices were setting record levels.*Massive Fraud and Illegal Activity.---there were no rules for the stock market, the government stayed completely out of it until the 30's. example is pooling.*Federal Reserve Policy.---they didn't do much. they rose the interest rate and then just stopped.Effects Of The Stock Market Crash*Banks closed.---people lost their life savings.*Businesses closed, people lost jobs, people have no money, they dont buy things. (cycle)*Investors and businesses lose millions.*The Great Depression sets in.---the stock market crashing helped bring this along, some say it wouldn't have happened anyways, just wouldnt have been such a big deal.*Economic contraction in the United States spreads to Europe.---once our's crashed, other country's stock markets started to crash. this lead to world wide depression.-------------------------------------------------------------------------------------------------------------------------------------------------------------------------Video1. Causes?-2. Story of the stock market crash?-8 straight years, the stock had been rising. Mostly everyone lived in huge houses. The economy was changing in this new America. Factories started to sell amazing products such as radios.3. What is pooling?4. What did the Federal Reserve Board do?
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