we went over the stock market crash, and the day that it happened.Employment- income- consumption- productions- and back to employment.Causes of the stock market crash1) people bought on credit and eventually most people were in debt and didn’t have the money to buy or pay back.2) The federal reserve system raised interest and people last faith3) Stocks were over priced and the prices went to record high amounts. And then people started to sell their stock because they seem that the company was losing money. This caused a chain reaction and a lot of people started to sell their stocks. And the prices eventually start to fall very rapidly.4) Banks close because of the stock market crashed. And if people didn’t get their money out of the banks and they would lose all their savings that they had with the bank.Thursday. Jan 14 2010. Today in history we went over the website and went over the stock market crash and the great crash. People bought on margin. People started to sell their stocks and once people start to then it makes other people do it too. There was to much borrowing from the banks. The banks gave out money when they shouldn’t have and some banks eventually closed. Stocks were worth a lot of money but the company wasn’t doing well. A lot of the rich people took advantage of the average to make a lot of money. Unemployment rises fast and people are in dept like crazy and some people lose their life savings because banks close.
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