In your notes create a list of how life was good in the Roaring 20’s.

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Presentation transcript:

In your notes create a list of how life was good in the Roaring 20’s. Life is Good In your notes create a list of how life was good in the Roaring 20’s.

The Great Crash of 1929

Stock marketing was SOARING! Before the Crash (1920’s) Stock marketing was SOARING! Bull Market 1925 $27 Billion 1929 $87 Billion

Signs of Trouble Ordinary people went into debt buying new, exciting goods on credit

Signs of Trouble Industries were producing more goods than consumers could buy Widespread speculation Making high risk investments with borrowed money

Signs of Trouble “Buying on Margin” Purchase stock for only a fraction of the price and borrow the rest from brokerage firms

GREAT CRASHES

The Crash!!!

October 23, 1929 The start of the crash Dow dropped 21 points an hour!! Margin Call Brokers demanded repayment of loans Worried investors began to sell rapidly

A record 16.4 million shares sold Black Tuesday October 29, 1929 A record 16.4 million shares sold

Aftermath of the Crash If the Stock Market Crash was a cause, what would the effect be?