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 by no later than 11:59p.m.
1) The stock market promised to bring in large amounts of money and to not have bad returns.
ReplyDelete2)Too many people got scared and sold their stocks when they started dropping.
3)Stock market crashed and many people didn't have jobs after the war.
1. Americans invested in the stock market in hoping to earn enormous profits from rising stock prices.
ReplyDelete2. Investors were nervous by various factors and including rising interest rates. So the began to sell their shares. The dumping of so much stock in the market jolted investor confidence and caused prices to plunge.
3. The global economic downturn, debt, the unequal distribution of wealth, and overproduction.
The economy was thriving and people wanted to get in on the action. People wanted to make easy money investing in the stock market. Soon people were investing money that they had borrowed. Soon large investors became worried and pulled their money out of the market. More and more people were taking out money and the market plunged. People who borrowed money had to find a way to pay it back. So they pulled money out also. With all the money taken out stocks crashed. Companies began losing money and could not produce as much. People were fired and companies feel through. People lost money and soon the depression began.
ReplyDelete1. Hoping to earn enormous profits from rising stock prices.
ReplyDelete2. All the goods and services produced in a given year reached $103 billion.
3. Little help from the goverment, and fourth of the work force lost thier jobs.
1) Hoping to earn enormous profits from rising stock prices, many invested in the stock market
ReplyDelete2) Speculative buying drove stock prices above their real value. When large-scale selling occurred in October 1929, the market crashed
3)The global economic downturn, debt, the unequal distribution of wealth, and overproduction
1) The stock market was seen as a "get-rich-quick" scheme. People didn't really think about what they were getting themselves into when they invested. They didn't see the possible consequences, all they saw was the money... and lots of it.
ReplyDelete2) Large investors in the market became nervous and started selling their stock. This made other investors nervous so they began to sell their shares too. Prices plunged.
3) At first people kept insisting that the crash was just a minor setback and that it would be resolved before long. The gross national product, which had at one point had reached $103 bukkuib dollars, plummeted below $56 billion. The average income for Americans was cut in half. The auto and steel industries only produce a small fraction of what they had produced before. Companies shut down and a lot of people lost their jobs. The banking industry was hit hard too. Investors and businesses that couldn't pay off their debt left the banks with no incoming funds. Nearly everything shut down.
1) Many Americans invested in the stock market in the 1920's because stocks had risen steadily over several years.
ReplyDelete2) Large investors were made nervous by various factors and began to quickly sell their shares.
3) When the investors dumped so much stock the prices plunged, when prices fell people wanted the money they were owed. By year's end the debt exceeded the total cost of U.S. involvement in WWI
1.People hoped to earn big profits from rising stock prices so many americans invested in the stock market.
ReplyDelete2.Speculative buying put stock prices above their real value. When large-scale selling occured in October 1929, the market crashed.
3.Many factors contributed to the Great Depression, the global economic downturn, debt, the unequal distribution of wealth and overproduction.
1. It was right after the war and people were eager to buy stocks. The stock market seemed like a good and safe way to make money.
ReplyDelete2. People sold stocks and prices dropped so people panicked and began selling everything while nobody was buying.
3. The stock market crashed, people lost their money, and few jobs were available.
1- Americans invested mostly in the stock market hoping to earn enormous profits from rising stock prices. This didn't always turn out for the better, but much more for the worse.
ReplyDelete2- What caused the crash was that to many people buying way to much goods drove stock prices above their real value.
3- The main factors that caused the Great Depression were the global economic downturn, debt, the unequal distribution of wealth, and overproduction of goods. It's sad that all of this caused such a problem for many people.
1.)People had confidence in it. It was a way to get rich quick.
ReplyDelete2.) Those who believe in the strength of the economic bubble and invested everything they had lost everything they had.
3.) The economy weakened and the unemployment skyrocketed. The Great Depression had begun.
1. People thought investing in the stocks would be an easy way to make cash. They never considered if the stock would fall.
ReplyDelete2. People bought more good than was needed, causing that to drive sotcks above value.
3. The stock market crashed, people and businesses lost their money, and limited jobs were offered when the crash occured.
1. Americans hoping to earn enormous profits from rising stock prices.
ReplyDelete2. Investors were nervous for several reasons and including rising interest rates.
3.The global economic downturn, debt, the unequal distribution of wealth, and overproduction