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. As more people invested in the stock market, stock prices began to rise. Stock prices then bobbed up and down throughout 1925 and 1926, followed by a strong upward trend in 1927. The strong bull market even more people to invest. And by 1928, a stock market boom had begun.
ReplyDelete2. The first and foremost reason is overvalued stocks. Another reason that has been deduced is that of margin buying.The rates of interest on the broker loans were unnaturally increased making it all the more difficult for the investors. Bad banking structure can also be blamed for the great depression of 1929.
3. There were 5 major causes of the Great Depression
-Stock Market Crash of 1929
-Bank Failures
-Reduction in Purchasing Across the Board
-American Economic Policy with Europe
-Drought Conditions
1Hoping to earn enormous profits from raising stock prices, many americans 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 stock market crash of 1929 and the beginning of WWII gave rise to the Great Depression.
1.) People had confidence in it. It was a way to get rich quick.
ReplyDelete2.) The 1929 Stock Market crash was a result of various economic imbalances and structural failings.
3.) Unequal distribution of wealth. There was over speculation in the Stock Market, which was not regulated. Increased manufacturing and agricultural output, but wages that did not keep pace for the consumers to purchase all that was produced or grown. Buying on credit, known in the 1920s as installment buying. People purchased things like refrigerators on time, and did not have money to pay for the product in the future, when the bills became due. Banks were permitted to speculate in land and the stock market with little government regulations.High tariffs and war debts helped spread the depression world wide. The Stock Market Crash of 1929 signaled the beginning of the Great Depression.
1.) people invested in the stock market because they had confidence in it. It was an easy way to get rich.
ReplyDelete2.) The cause of the stock market crash in 1929 was of various economic imbalances and structural failings.
3.) Some factors were deflation where money is not worth as much as it use to be, and a decline in trade.
1) Many Americans invested because the prices kept going up and up so it was easy for them to make money on buying and selling stocks.
ReplyDelete2) So many people were selling out that it crashed the market leaving people in lots of debt.
3) Well the fact that the markets crashed was a huge part, but also a large drought hit the large part of the Midwest which also help start the great dustbowl. To many farmers were plowing which left the soil bare or without any rooting which allowed the wind to carry it away.
1. Business leaders, such as General Motors executive John J. Raskob, urged Americans to invest, claiming that anyone who put $15 a month in the stock market for 20 years would end up with $80,000.
ReplyDelete2. Speculative buying drove stock prices above their real value. When large-scale selling occurred 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.) Americans hoped to earn high amounts of profit from rising stock prices that's why many American invested in the stock market.
ReplyDelete2.) The market crashed when people started to speculative buying stocks, that's what drove the stocks over their real value. The real crashed was in October 1929, when a large amount of people started to selling their stocks.
3.) Many factors led to the Great Depression like unequal distribution of wealth, debt, the global economic downturn, and overproduction.
1) With technology improving quickly, many people expected the economy to rise. During the 1920's, people received more income. So, they spent more and stock prices began to rise. Billions of dollars were invested in the stock market as people began expecting to make millions on the rising stock prices.
ReplyDelete2) The 1929 Stock Market crash was a result of various economic imbalances and structural failings.
3) * Stock Market Crash of 1929
* Bank Failures
* Reduction in Purchasing Across the Board
* American Economic Policy with Europe
* Drought Conditions
1.) they invested so heavily because they didn't understand the market and thought it would keep going up. many people just saw the stock market as an easy way to make guaranteed money because they didn't understand the cycles it goes through.
ReplyDelete2.) a bunch of people started selling their stocks. they called it "Black Thursday".
3.) the stock market crash of 1929, Bank failures, Reduction in purchasing across the board, American economic policy with Europe, Drought conditions.
1)After WW1, Europe was devestated finacially and phsycologically. America, with the least involvement as a major power, was generally unscathed, and our economy boomed with loans that needed to be paid back by France and Britain. With all that money industry exploded and comercial investment skyrocketed, and our trucking industry got its first real start after manufacturing trucks to be used over seas. And oil discoverys were still going strong in the southwest.
ReplyDelete2)The Wall Street Crash of 1929, also known as Black Tuesday or the Stock Market Crash of 1929, began in late October 1929 and was the most devastating stock market crash in the history of the United States, when taking into consideration the full extent and duration of its fallout. The crash signaled the beginning of the 10-year Great Depression that affected all Western industrialized countries.
3)The stock market crash on October 29, 1929 set in motion a series of events that led to the Great Depression, but in fact, the American economy and global economy had been in turmoil six months prior to Black Tuesday, and a variety of factors before and after that fateful date in October caused and exacerbated the Great Depression.
1) Because they believed that anyone who invested $15 dollars a month in the stock market for 20 years would end up with $80,000. The stock market was soaring. Everyone invested sometimes too much, way more than the stocks were worth.
ReplyDelete2) Large investors started to sell their shares. The dumping of so much stock on the market jolted investor confidence and caused prices to plunge. As prices plunged downward, more and more investors were selling their stocks, making it sink even lower.
3) The stock market crash jolted the American economy but it is not the only cause of the Great Depression. The root of the Great Depression lay in numerous factors including the American economic system. Many analysts place primary blame on the economic practices in the 1920's. Some more factors are the widespread dependence on credit, unequal distribution of income, debt, and overproduction.
Business leaders, such has GM executiv4 john j Raskob, urged Americans to invest, calming that anyone who put 15$ a mouth would end up with $80,000 in 20 years.
ReplyDeleteBlack Thursday large investors made nervous by various factors, including raising interest rates suddenly began to sell there shares. the dumping of so much stock on the market jolted investor confidence and caused prices to plunge.
the crashing of the sock market was big. millions lost there jobs because there was no money being made by business like steel and auto.
1.) Americans wished to make a fortune from their investments. Business leaders encouraged Americans to invest, claiming that investors could make tens of thousands of dollars.
ReplyDelete2.) Large investors suddenly began to sell their shares on October 24, 1929, otherwise known as Black Thursday. The dumping of so much stock on the market discouraged investors and caused prices to plunge. Investors continued to sell their stocks until Black Tuesday, when prices sank to a new low as investors dumped millions of shares on the market.
3.) The stock market crash of 1929, the state of the global economy after World War I, and the American economic system itself were blamed for the Great Depression.
1) By 1928, the stock market began to boom. The stock market became a place where everyday people truly believed they would get rich. The newspapers would report about people such as chauffeurs, maids and teachers making millions from investing in the stock market. This made more and more people interested in investing.
ReplyDelete2) on October 24, 1929 stock prices took a plummet. A vast number of people started selling their stocks. Multiple people watched the ticker slowly fall behind as the number it gave read doom to most people.
3) The stock market crash on October 29,1929 was the event that set a series of events in motion that led to the Great Depression. Although American economy and global economy had been in trouble months before Black Thursday. Results from before and after that day in October is what caused the Great Depression.
1) Stock sales had risen steadily for several years. As demand rose, so did stock prices. Many experts saw no end to the bull market the upward trend in stock prices. By the 1920's stock speculation playing the market by buying and selling to make a quick profit.
ReplyDelete2) October 24, 1929 Black Thursday was when the stock market crashed. It crashed because large investors, made nervous by various factors, including rising interests rates, suddenly began to sell their shares. The dumping of so much stock on the market jolted investor confidence and caused prices to plunge.
3) The deep economic downturn that gripped the United States between 1929 and the beginning of WWII. At the time people blamed World War One. The global economy had suffered many setback because of debt from that war.
1) Many Americans invested in the stock market in the 1920's because after WW1, Europe was devestated finacially and phsycologically. America, with the least involvement as a major power, was generally unscathed, and our economy boomed with loans that needed to be paid back by France and Britain.
ReplyDelete2) A lot of the stock market crash of 1929 can be blamed on over exuberance and false expectations. Investors started selling their shares because of rising interest rates. The dumping of so much stock on the market jolted investor confidence and caused prices to plunge.
3) Factors that gave rise to the Great Depression were the stock market crash, causing investors and businesses not being able to repay their loans, leaving banks with no incoming funds. many depositors then withdrew their savings, which caused the banking system to collapse. some customers even found that their money was gone, leaving them with no life savings.
1,) People viewed the stock market as a short term investment rather than a long term investment. This was where the people got the idea that buying stock and selling it quickly when the prices were high was a way to make easy money.
ReplyDelete2.) People across the United States were scrambling to get into the stock market. The profits seemed so assured that even many companies placed money in the stock market. And even more problematically, some banks placed customers' money in the stock market (without their knowledge).
3.) There were many causes. One was the stock market crash, then bank failures, reduction in purchasing across the board, the American Economic Policy with Europe, and the droughts.
1.) Poverty in the 1920's was great, so stock markets brought hope of more money. If they invested a certain amount, they could get as much as $80,000, which was quite a fortune back then.
ReplyDelete2.) Thing such as rising interest rates frightened large investors, so they began selling their shares. This caused prices to plunge. Prices got to a record low and people had to continue to sell their stocks for under half of what they should have received. The losses ended up exceeding the cost of the U.S.'s involvement in WWI.
3.) The U.S. economic system was not in good conditions, and it continued to sink steadily for several years. Auto and steel industries were greatly affected, as well as the banking industry. Also, dependence on credit was huge. To put it simply, the real main problem was that our economic system was poorly set up.