Watching the Economy Crumble

Explain what the stock market crash was

Identify and explain factors that led to the stock market crash

Many people were enjoying the success and the good times of the 1920’s

The stock market continued to rise People took their savings out of the

bank and bought stocks Many even borrowed money to buy

stocks Even though the price of stocks were

high, people did not care, they just cared about making money

On October 24, 1929, stock prices dropped sharply

There were more people selling stocks than buying them

People had trouble finding enough money to cover their loans…… so they started selling their stocks

October 29, 1929Stocks began to fell, they fell by $16

million dollarsThe stock market fell apart and

crashedPeople tried to sell their stocks, but

there were no buyers

1) Weakness in the economy2) Businesses were producing too

much3) Bought stocks on the margin,

called speculation (own little of your own stock, because of loans)

All of these factors started the worst economic time of the United States

Farm prices droppedUnemployment hit railroads, coal

and clothing factoriesAutomobile sales droppedBanks failed and closed, they ran out

of money

Hoover and government did little to help

He did not want to give money to the needy, said charities should solve the problem

1932 was the worst year, the Depression became the downfall of his presidency