Monday: Forum post leaders talked about their topics. Test tomorrow.
Finish Notes. My notes are on here.
13. Stock Market Crash-causes
Stock- buying part of a company, hoping it does well and you make money
New York Stock Exchange
Dow Jones 30- 30 of the largest companies in the U.S.
Apple
Microsoft
Johnson and Johnson
Causes of Stock Market Crash-1929
Stock prices were grossly inflated, did not have real value-water stock prices
Stock price over-valued
Over-speculation during the 1920's
Led to watered stock
"Buying on margin"
Led to people being in debt and watered stock prices
Overproduction of goods and under-consumption by consumers
Companies kept spending money to make these products and not enough people were buying the products
People not buying things because they were in debt from buying on credit
Uneven distribution of wealth
Most of Americans did not have a lot of money
People realized they need to start saving money so they stop buying products
Too much borrowing from banks
Banks were handing out money left and right
Without checking on their backgrounds before giving out money banks realized that people were not paying them back
Federal Reserve increases interest rates
"Bankers bank"
When banks got low on money banks could borrow money from the federal reserve so they don't close down
Very low interest rates
Had to raise interest rates to make the country real- so people would stop borrowing money
Knew that when they raised interest rates people would quit buying and there would be a crash
Raised the rates and there was a crash in the stock market
Lack of government regulation
Government had no rules/regulations
Banks used to take people's money and invest in the stock market
Stock markets would crash and the people's money was gone
Rich people would pool their interest together and buy cheap stock-prices rose- rich people would pay people to write about it and then sell the stock and get the money
Tuesday: Took the test.
Wednesday: Watching 1930's videos and taking notes. My 1930's here.
Thursday: Continuing 1930's notes and videos.
Friday: 1930's notes. Mine are here.
Comments