The Stock Market CRASH

The Stock Market Crash

Wednesday, March 21, 2007

Collapse Have you ever felt like all was going great in your

life… But then everything collapsed? What did that feel like? Why did it happen? Today we will learn about the greatest economic

fall in our history. Today we will learn about The Stock Market

Crash.

New York Stock Market Crash

Stock

Stock – A stock represents a share in the ownership of an incorporated company.

New York Stock Market Crash

Stock Market Crash – On October 29th 1929 the market “crashed” as prices went into free-fall.

Why?

Gambling on Stocks

As stock prices rose in the 1920’s, people hoped to get rich quickly.

They bought on credit, paying only a small part of a stock’s value, and promised to pay rest later.

When the market crashed they could not pay.

Overproduction The 1920’s saw rapid

increases in the production of new goods like cars, radios, and refrigerators.

Manufacturers were soon producing more goods then consumers could buy.

Uneven Distribution of Income Even in the prosperous

1920’s, half the population lived at or below poverty line.

The income of farmers declined; Minorities suffered from unemployment and low-paying jobs.

Shrinking International Trade American tariffs

protected markets in the U.S., but made it difficult for U.S. to sell abroad due to other countries having tariffs of their own!

Shaky Banking and Credit The banking system was

unregulated. Bankers often put their

depositors money into bad investments.

Consumers bought on credit more then they could afford.

Many banks CLOSED.

Great Depression Great Depression

– Worst economic period in U.S. history.

Global Depression Because the top economy in the world fell

the rest suffered also. Global Interdependence – When

conditions in one part of the world are affected by other parts.

The END