THE STOCK MARKET CRASH
The wall street crash of 1929 was the worst stock market crash in the history of the united states. This crash is what began the twelve year great depression that didn't end until 1941.
Here is a quote about what might happen if you bought stocks during this time from richard m. salsmen (a famous economist).
" Anyone who bought stocks mid 1929 and held onto them saw most of his or her adult life pass by before getting it back even." (This means that buying from the stock market during this time was a waste of time and money).
http://en.wikipedia.org/wiki/Wall_Street_Crash_of_1929
HOW IT HAPPENED
http://www.angelfire.com/co/pscst/stock.html
Primary causes of the great crash are:
- during the twentys the practice of margin buying( buying stocks with the use of credit was a common practice).people bought borrowed money from their brokers, who went to banks for that money. there for when the stock market crashed there WAS NO MONEY.
HOOVER TAKES ACTION
Things you should know:
- President Hoover took several different steps help stimulate the economy such as:
- The Farm board which helped members purchase crops and keep from selling them until prices rose
- The national credit corp. which loaned money to smaller banks to keep them form going under.
The different steps he took failed to stimulate the economy, so he had congress pass a series of bill to provide the following: Morgage Relief, Reform banking, and to put more federal money into investment.
In 1932 he passed the federal Home Lone Bank Act this loward morgage for home owners, helped farmers to be able to affored farm loans and avoid foreclosure.
His Biggest accompliishment was the Reconstruction Finance Corporation. This allowed congress to give emergency money to banks, life insureance companys, rail roads, and other large bussinesses.
He believed that by doing this it would provide americans with more jobs and higher wages. More then eight hundred and five million dollars were loaned to large corporations, but in the end this also failed.
The Americas(history book)
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