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The stock Market Crash of 1929

The stock Market Crash of 1929. 1920s Booming Economy Wages up 40% after WWI Stock Market was soaring Many people investing – get rich quick schemes 1920s

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Page 1: The stock Market Crash of 1929. 1920s Booming Economy Wages up 40% after WWI Stock Market was soaring Many people investing – get rich quick schemes 1920s

The stock Market Crash of 1929

Page 2: The stock Market Crash of 1929. 1920s Booming Economy Wages up 40% after WWI Stock Market was soaring Many people investing – get rich quick schemes 1920s

1920s Booming Economy

Wages up 40% after WWI

Stock Market was soaring Many people investing – get rich quick

schemes 1920s fad – get into the market

America has emerged as a world economic, industrial, and military power

Page 3: The stock Market Crash of 1929. 1920s Booming Economy Wages up 40% after WWI Stock Market was soaring Many people investing – get rich quick schemes 1920s

Economic Danger Signs

200 businesses control 50% of the economy? Why is this dangerous?

Too much industry overproduction - surplus goods not being purchased Too many products not, enough consumers

buying

80% of population has no savings

Page 4: The stock Market Crash of 1929. 1920s Booming Economy Wages up 40% after WWI Stock Market was soaring Many people investing – get rich quick schemes 1920s

More Economic Danger Signs

Banks are uninsuredNo gov. agencies monitor banks or the Stock Market – Laissez Faire/Republican Presidents 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 Margin – borrowed money

from Stock Broker to purchase Stocks

Page 5: The stock Market Crash of 1929. 1920s Booming Economy Wages up 40% after WWI Stock Market was soaring Many people investing – get rich quick schemes 1920s
Page 6: The stock Market Crash of 1929. 1920s Booming Economy Wages up 40% after WWI Stock Market was soaring Many people investing – get rich quick schemes 1920s

The Warning Sign

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

6,000 banks close out West What are the consequences?

Pres. Hoover vetoes all bills to help farmers Laissez-Faire

Page 7: The stock Market Crash of 1929. 1920s Booming Economy Wages up 40% after WWI Stock Market was soaring Many people investing – get rich quick schemes 1920s

STOCK MARKET CRASH OF 1929

Page 8: The stock Market Crash of 1929. 1920s Booming Economy Wages up 40% after WWI Stock Market was soaring Many people investing – get rich quick schemes 1920s

Black Thursday

Black Thursday Oct. 24th, 1929- Stocks fall drastically

- Brokers panic- GE falls from $400 a share to $283 a share

- Brokers make margin calls – no one can pay

Page 9: The stock Market Crash of 1929. 1920s Booming Economy Wages up 40% after WWI Stock Market was soaring Many people investing – get rich quick schemes 1920s
Page 10: The stock Market Crash of 1929. 1920s Booming Economy Wages up 40% after WWI Stock Market was soaring Many people investing – get rich quick schemes 1920s
Page 11: The stock Market Crash of 1929. 1920s Booming Economy Wages up 40% after WWI Stock Market was soaring Many people investing – get rich quick schemes 1920s

Black Tuesday

October 29th, 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

Page 12: The stock Market Crash of 1929. 1920s Booming Economy Wages up 40% after WWI Stock Market was soaring Many people investing – get rich quick schemes 1920s
Page 13: The stock Market Crash of 1929. 1920s Booming Economy Wages up 40% after WWI Stock Market was soaring Many people investing – get rich quick schemes 1920s
Page 14: The stock Market Crash of 1929. 1920s Booming Economy Wages up 40% after WWI Stock Market was soaring Many people investing – get rich quick schemes 1920s
Page 15: The stock Market Crash of 1929. 1920s Booming Economy Wages up 40% after WWI Stock Market was soaring Many people investing – get rich quick schemes 1920s
Page 16: The stock Market Crash of 1929. 1920s Booming Economy Wages up 40% after WWI Stock Market was soaring Many people investing – get rich quick schemes 1920s
Page 17: The stock Market Crash of 1929. 1920s Booming Economy Wages up 40% after WWI Stock Market was soaring Many people investing – get rich quick schemes 1920s

Immediate Effects of the Crash

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

Page 18: The stock Market Crash of 1929. 1920s Booming Economy Wages up 40% after WWI Stock Market was soaring Many people investing – get rich quick schemes 1920s
Page 19: The stock Market Crash of 1929. 1920s Booming Economy Wages up 40% after WWI Stock Market was soaring Many people investing – get rich quick schemes 1920s
Page 20: The stock Market Crash of 1929. 1920s Booming Economy Wages up 40% after WWI Stock Market was soaring Many people investing – get rich quick schemes 1920s
Page 21: The stock Market Crash of 1929. 1920s Booming Economy Wages up 40% after WWI Stock Market was soaring Many people investing – get rich quick schemes 1920s