Stock Market Crash quiz

Get rich quick schemes

many people invested in them before the crash / stocks

economics danger signs before the crash

• 200 businesses control 50% of the economy

• Too much industry overproduction - surplus goods not being purchased

• 80% of population has no savings

• Banks are uninsured

• No gov. agencies monitor banks or the Stock Market – Laissez Faire

• Market value based on borrowed $ and over speculation instead of real value

• Increase in personal debt – (Credit debt and installment plan debt)

• Buying stocks on a margin

Buying Stocks on Margin

borrowed money from Stock Broker to purchase Stocks

What happened to the farmers before / during the crash

• Farm prices drastically fall after WWI

  • Farmers paid by gov. to make food for allies, creates a huge surplus

• Farmers unable to repay loans after gov. pulls WWI agricultural contracts

_____ banks closed out West which was one of the warning sings

600

Black Thursday

Oct. 24^th, 1929 / Stocks fall drastically

• Brokers panic

• GE falls from $400 a share to $283 a share

• Brokers make margin calls – no one can pay

Black Tuesday

October 29^th, 1929

• Stocks plunge again

• Value of market falls

• People sell what’s left to get some $

• By the end of Oct. – over $30 billion has been lost

• Thousands lose everything

What were some immediate effects of the stock rash?

• Many lost life savings in the market crash

• Banks and Brokers call in loans – American people have no $

• Hundreds of banks close

  • No $ to pay back loans = empty savings accounts

  • Banks not prepared for people to withdrawal $ at the same time

  • No bank insurance

  • 9 million savings accounts vanish

Who are the “Okies”

People in the plains (oklahoma) who were displaced by the Dust Bowl

Dust Bowl

A sever droughtt and dust storm that displaced thousand during 1930 to 1936.

Many Okies travled up to ___

California

squatter camps

people lived in thrown together shacks outside of the cities

Said to be the most photo taken during the Depression

Dorothea Lange’s photo “Migrant Mother,”

John Steinbeck

(1902-1968) was one of the best-known and most widely read American writers of the 20th century. Grew up in California

1937, John Steinbeck published his novella “Of Mice and Men,”

the tragic story of two migrant ranch workers, George and Lennie, during the Great Depression in California.

Hoover

Pro-business, conservative, belief in the individual, advocate of small federal government, Protestant

Smith

Smith: Democrat, pro public health, workers’ compensation, civil liberties, government control of some industries, Catholic

Who won the election of 1928

Hoover

What’s Hoover philosophy

Hoover opposed any form of federal welfare, or direct relief to the needy. Handouts would weaken a persons moral fiber

Who did he believe shroud give handouts

should come from private organizations. Hoover’s philosophy angered and frustrated many suffering Americans.

Reconstruction Finance Corporation

$2 billion for emergency financing for banks, life insurance companies, railroads and other large businesses.

• Believed the $ would trickle-down to the average citizen through job growth and higher wages. HooverTo little, to late

Hooverville

As an insult to the president / nicknames for shantytowns

“Hoover Blankets”

the newspapers that were used to keep warm were called

Hoovers change of social aspects

seen as a humanitarian, was now seen as a cold and heartless leader.

the bonus army

1932, thousands of WWI veterans marched into

Washington D.C. demanding their bonuses

The Patman Bill

would have given the army their bonuses immediately; it did not pass Hoover decided to forcibly remove the war veterans by using tear gas

HOOVER’S LEGACY

Hoover could not effectively deal with the

Depression.

He was viewed as uncaring and unsympathetic

towards the sufferings of Americans

This would eventually lead to his losing the election

of 1932 to Franklin Delano Roosevelt

Hoover tried to help through Reconstruction Finance Corporation $2 billion for emergency financing for banks,

$2 billion for emergency financing for banks, life insurance companies, railroads and other large businesses.

THE RISE OF FDR

1910 Senator

Assistant Secretary of the

Navy

1921 Stricken with Polio

and became paralyzed

1928 Governor of New

York

ROOSEVELT’S PLAN FOR FIXING THE GREAT DEPRESSION: “THE NEW DEAL”

Focus on helping Americans by offering the 3 R’s

• Relief

• Recovery

• Reform

RELIEF

The government will give direct help or relief to those who are suffering ; May be food, clothing,

RECOVERY

The government will provide jobs to help Americans recover from the Depression

REFORM

The government will regulate (make rules) for business

No more laissez faire

THE NEW DEAL PLAN SET UP

Emergency Banking Act- Federal Deposit Insurance Corporation-FDIC ; Securities and Exchange Commission (SEC) ; Agriculture Adjustment Administration (AAA)