Throughout the generally prosperous 1920's, isolated voices warned of problems with the American economy. Some people pointed to the farm crisis and to "sick" industries as problems in need of attention. Yet despite these warnings, most Americans believed that the economy would continue to thrive. Then came the stock market crash of 1929. Stock prices plunged, and investors lost billions of dollars. U.S. industries, already showing signs of weakness, almost ground to a halt. (pg. 326, 13.1)
Your Assignment:
1.) Why did many Americans invest in the stock market in the 1920s?
2.) What caused the stock market crash of 1929?
3.) What factors gave rise to the Great Depression?
Due: Sunday 4/5/09 by 11:59p.m.
Monday, March 30, 2009
12 comments:
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1)Many Americans invested in the stock market because they were hoping to ear enormous profits from rising stock prices.
ReplyDelete2)The peoples speculative buying drove the stock prices aboven their real value and when a large-scale selling pccured the market ended up crashing.
3)The global economic downturn, debt, the unequal distribution of wealth, and over production were all causes that led to the Great Depresssion.
Many Americans invested in the Stock Market in hopes to earn enormous profits from rising stock prices. Speculative buying drove the stock prices way up to above their real value. Then when large scale selling occured the Stock Market crashed. Their were many things that caused the Great Depression and although the stock market crash contibuted there were other reasons like the global economic downturn, debt, the unequal distribution of wealth, and overproduction.
ReplyDeleteThe American people invested bc the industrial advances of the years leading up to the stock market crash had broguht large profit to many people. So large amounts of preople wanted to get in on the profit.
ReplyDeleteWith all these people buying in prices were drivin up way higher than there actual value. This caused the market to crash.
Factors of the Great Depression were the global econemy took a turn for the worse, many people had bought things they couldn't afford leading to a large amount of debt, wealth was unequally distributed and many products were being overproduced creating a supply to large for the nations demands.
1)They thought they could get rich quick with the rising stock prices.
ReplyDelete2)Speculative buying drove the stock prices over their real value and when the large scale selling occured the market crashed.
3)Global economic downturn, debt, unequal distribution of wealth, and overproduction.
It was an easy way to make money. The Stock market crashed mainly because the banks were giving out money that was not backed by gold and they fell into a large dept, so all the people who had money in the banks lost everything.ooops i answered question three first lol my bad. on to question two!!!! the stock market crashed because people got scared and started to pull out all there stocks that they had so they would not loose the money.
ReplyDeleteMany Americans invested in the stock market in the 1920’s in hopes of earning enormous profits from rising stock prices. This boost in buying of stock markets drove stock prices above their real level. When this large scale selling occurred in October 19029, the stock market crashed. It was on Black Thursday that opened the stage to the following week when prices dropped even lower, so investors sold their stocks at the same time which led to the crash and the name Black Tuesday. The factors that gave rise to the Great Depression were depression on the state of the world economy following World War I. The global economy suffered enormous setbacks because of massive war debts by European countries. Today’s economists and historians agree that the causes in the Great Depression lay in the American economic system itself.
ReplyDelete1.) Many Americans investet ind the stock market in the 1920s because they were hoping to earn enormous profits from rising stock prices.
ReplyDelete2.) By speculative buying, the stock prices rose above their real value and large-scale selling occurred in October 1929. So the market finally crashed.
3.) The global economic downturn, debt, the unequal distribution of wealth, and overproduction were just some factors that in the end lead to the Great Depression at about 1930.
1) The americans invested in the stock marted because they belived it was a golden time but the great depression was right around the cornner.
ReplyDelete2) and 3) Most economists of the 1920s believed that the stock market sales of durable goods, or the financial health of banks, was the chief indicator of the hurting health of the United States. In September of 1929, stock prices began to fluctuate, but market analysts dismissed this as temporary. What they did not realize, however, was that stock prices were totally out of proportion to actual profits. Sales of goods and the construction of factories were falling rapidly while stock values continued to climb.
1.) Many Americans invested in the stock market because the thought of the "get rich quick" idea. They believed by buying stock that this would make them money, but they never took in the consequences it might have.
ReplyDelete2.) The stock market crashed was caused because people were paying way more than what the stock was actually worth. Some bug investors began to fear a crash and sold all of their stocks. This pretty much put everyone else into frenzy to sell their stock too. The prices of stock spiraled down and this led to Black Tuesday.
3.) The factors that gave rise to the Great Depression were: America's gross national product decreased by over half, along with the average income rates. This caused most factories and companies to shut down. All this led to people not being able to pay the banks back, which caused the banking industry to collapse.
Because if you bought stock you got money quick. I was also called the bull market.
ReplyDeleteBuying drove stock prices above the real value. Is what made the stock market crash.
Many factors contributed to the great depression: the global economic downturn, debt, the unequal distribution of wealth, and overproduction.
Playing the stocks was a quick and easy way to earn a profit. There was rapid buying and selling that inflated the prices of stocks to the point that many stocks were selilng for more than they were really worth. Also, margin buying or purchasing stocks with borrowed money was a factor. Hoping to earn enormous profits from rising stock prices, many Americans invested in the stock market. Speculative buying drove stock prices above their realy value. When large-scale selling occurred in October 1929, the market crashed. Many factors contributed to the Great Depression such as: the global economic downturn, debt, the unequal distribution of wealth, and overproduction.
ReplyDelete1.) Alot of Americans invested in tehs stock market in hope to get large profits from rising prices.
ReplyDelete2.) When prices were rising higher than the actual value...it crashed!
3.) Things like Global warming.