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Objective 5.1- The Great Crash

Added Feb 03, 2016 •

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hey hey hey by the end of the 1920s something was terribly wrong with the United States economy there were signs that the twenties bubble was about to burst key United States Industries work making a profit when's the writing coal oil and Steel Industries were in trouble Farmers began to struggle to survive falling prices made out hard to repay debts Farmers lost their homes and World bank's the government enacted price supports to set crop prices high and help farmers make profits consumerism begin to stall consumers ran out of disposable income and credit so purchase plug-in finally Rising debt both consumers and firms spent beyond their means and ran up unpayable debt more importantly than the prosperity of the 1920s hit Avast inequality of income during the 1920s the rich got richer and the poor got bored only a very small number of Americans actually prospered during the twenties Boom the wealthiest 1% seller turn up by 75% While most salt only a 7% increase More than 70% of American families lived at the poverty line most couldn't afford Basics many Americans good money for the future case they needed it which force them to use credit to buy them assess ati's to survive day today in Edition Americans look for quick riches in the stock market the hot new trend of the 1920s was to invest your money in the New York Stock Exchange stocks work  do you have any investor who has cash on hand funny Russell certificate of stock which is part ownership of the company itself the company sells that stock to investors for their money and turn the company uses that investment money too high workers in buy more Machinery with which they make more products those products are then sold for a profit because the investor gave its money over to the cup they are entitled to a are those profits Along Comes investor number to who also has cash they buy the valuable stock from investor number one the First Investors sold a stock at a higher price than what he bought at doubling his money while the 2nd if that's her is now entitled to a share of the company's profits as wealthy Americans grew richer they invested in the stock market looking for quick profits obsessed over the Dow Jones Industrial Average which shows the Market's help with a point system it's kind of like the pulse of the stock market during the twenties deregulation of skin pro-business policies at ease rules president Warren G Harding and Calvin Coolidge at recklessly ease government regulation of the market allowing for risky trading practices what are those risky practice was speculation speculation was when investors bought stocks based on the hopes of a quick profit not on the merits of the firm led to many investors bad stock and a lot of money being lost II whiskey practice was buying on margin investors bought stocks with only a small down payment and agreed to pay off the rest of the stuff using credit the problem with this method is if the stock doesn't turn the prophet you and I are indebted to a broker with which you have no means to pay back the debt by 1929 the Dow risen enter percent from the previous decade only 3% of Americans were in stocks but it seemed that anyone could get rich in October of 1929 we were spread that big investors were ready to sell theirs Market confidence began to stumble and investors hurriedly soulstock to avoid losses on Thursday October 24th 1929 Pennock investors dumped their stocks in Mass numbers as stock prices sink wealthy Bankers by bad stocks to stabilize the market the Dow stabilize going into the weekend but all of that was not enough to hold back the inevitable when the Traders returned to the exchange the bottom fell out of the market October 29th 1929 was the worst day of the stock market crash it became known as black Tuesday  Panic overtook investors as they dumped 16.4 million shares of stock and stock prices sing Smalling where's would life with huge debt firms lost money and many people lost all their savings by November 1929 the market and lost 30 billion dollars and US output was when half the economy was officially shrinking most Americans didn't have money in stocks but they had money in Banks the uncertainty caused by the crash led to the Panic to savings from Banks to the banking Panic of 99 million things at once the bank roast drain funds and many banks fail because it couldn't cover withdrawals over 600 banks failed by December of 1929 and millions of Americans lost or Savings Banks I had invested in stocks lost money and failed operating private savings unlike today the government didn't insure bank deposit some money lost was lost forever  the stage was set for the biggest economic. American history not been seen before and is not been seen since

Uploaded by Mark Lovein.

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Objective 5.1- The Great Crash

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