Monday- Rural Electrification Act
-When did it start, what did it do, who did it help, was it successful (give examples), when and why did it end, is it still around today, include numerous pictures.
Buying on credit had people allowing to buy things, but then they were in debt so they stopped buying different items.
Republican Philosophy- Laissez-faire, rugged individualism, trickle down theory (Harding, Coolidge, Hoover)
Stock- part of a company (buying into the company)
Stock Market- Where people buy and sell stock (New York Stock Exchange)
Dow Jones Industrial Average- Created by Charles Dow in 1896, consists of 30 of the largest companies in the United States. Overal indicator for how the stock market is doing. Walmart, Microsoft, Verizon, Goldman Sachs, Coca-Cola, Nike, Home Depot, Exxon Mobil, General Electric, Disney.
Tuesday-
-Laissez-Faire rolled back by Roosevelt because people needed help from the government
-Rugged individualism "exceptional, people can do it themselves", when they actually couldn't
-Trickledown theory didn't work
-State of the Union tonight by Trump and Response by Joe Kennedy (Democrats)
-Buying on margin- buying stocks with credit, for $1000 dollars you could get $10,000 of stock.
-Permanent Prosperity in the Stock Market (1920s), led to the Stock Market Crash. If it starts to go out, you'd have to pay money that you didn't have. Buying on margin is good until it suddenly isn't.
-Watered stock is overpriced stock. Stock values should equate to the company's value. Opposite was happening in the late 20s. As soon as people start selling, the stock market goes down.
-Big Wall Street people sometimes in minor crashes would go and buy up the stock and put the stock back up. Some singlehandedly stopped minor crashes. Charlie Mitchell couldn't stop the crash of 1929 and lost everything. (Stock pooling- would find company with cheap stock and buy it, A lot of people played the stock market. Led to massive overwatered stock.
-Jesse Livermore committed suicide potentially due to that he couldn't play the stock market.
-Speculation with stocks- bought and sold, bought and sold, over and over again. Led back to watered stock.
-Income Inequality- people didn't have a lot of money, and had a huge impact on businesses and companies.
-Black Tuesday, October 29th, 1929, suicide rates went up.
-Ocotber 24th there was a crash, but it was averted and it rebounded.
-Federal Reserve System- Created in 1913 (banker's bank)- Banks should borrow money from Federal Reserve to save them. (Panics were called depressions). Broke the country into 12 districts each with a Federal Reserve Bank. The system eventually failed.
-The most powerful bank in the United States is the Federal Reserve. Controls amount of money in circulation, controls inflation and deflation. Controls interest rates for borrowing money.
-Banks were giving out money right and left. Lots of people couldn't give out more money. Now the government will save banks that fail but they used to not do that.
-Causes of the Crash: Stock market prices were grossly inflated, did not have real value-watered stock prices. Overspeculation during the 1920s, led to overpriced stock. People looked at stock prices rather than how the companies were doing. "Buying on margin" led to more in debt and watered stock prices.
-Overproduction of goods, pumping out way too much stuff (people weren't buying them). Uneven distribution of wealth, people couldn't buy things, top 10% can't carry thec ountry. There was too much borrowing from the banks, Federal Reserved increased interest rates way too late. Lack of government regulation on the stock market.
Wednesday- No School
Thursday/Friday- Sick
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