Today we continued with causes of the stock market crash. We first talked about speculators and they it affected the stock prices. The price of the stock was said to have no real value and when the actuall price of that started to drop the people would try to sell.During the late twenties there was a lot of fraud and crime in the stock market because the government didnt have rules or guidelines for it.Mr.Bruns went over " buying on margin" which means they put 10 to 20 % in and the bank would loan them the 80 to 90% This is what I think was the reason The Great Depression began, because if the price of the stock plummeted the broker or bank would send a " margin call " which means the buy must repay the money immediately and the people didnt have the money.The market crash lead to less and less buying. This meant that business werent getting any money and were forced to closed down.1. Causes- They thought their prosperity would last forever.2. Story of SMC-3.What is pooling-4.What did the Federal Reserve Board do?-
Comments