The Great Depression ~ POST WW I~ All nations will suffer economic hardships The economic collapse began here in NYC; Wall Street October 29, 1929… Tuesday MANY LOST THEIR HOMES

The Roaring 20’s in the U.S.A. The new concept of “credit” –buying things without money (early form of credit cards) Americans were buying: –New Kitchen Appliances & Clothes –New Cars –And investing in the Stock Market… to make more $$$ Fun times reigned –Many are working –Parties are had everywhere…times are good! –The Great Gatsby (famous book)

FLAPPER

Why was this bad? Credit system –People didn’t really have the money they were spending on new items WWI –The U.S. was a major credit loaner to France, England and many Euro. Nations AND FINALLY, THE CRASH OF FINANCIAL MARKETS THE STOCK MARKET CRASHES! CAUSING WORLD WIDE $$$ CRISIS!

What are Stocks? And the Stock Market? Stocks: A stock is a portion of the ownership of a company. A share in a company gives the owner of the stock a stake in the company and its profits or losses. Stock Market: The place where stocks are bought and sold… (think Wall Street!)

Let’s Invest in NIKE shoes We purchase ONE stock on March 2, 2009 How much does this cost? $39.76 for one stock And we decide to sell it on March 30, 2009 What is the value of NIKE stock on ? $46.26 for the same stock… How much $$$ did we make? $6.50!!!

What if we had 10,000 shares? Let’s say we bought a 10,000 shares on March 2, 2009… - if it cost $39.76 than we paid $39,760 So now how much $$$ did we make on March 30, 2009… - if the price is $46.26 X 10,000 shares = $46,260 - $39,760 $6,500 profit in one month

Why did the Stock Market Fail People bought stocks on margins—what speculator do –If a stock is $100 you can pay $10 now and the rest later when the stock rose Stocks fall –Now the person has less than $100 and no money to pay back

Stock Market Boom and Bust S&P Composite Index A boom is a time when stock holders make money; A bust is when stock holders loose money! Sept July 1932

RED LINE IS FOR PRESENT DAY: US!! BLACK LINE IS FOR GREAT DEPRESSION

And then… With people panicking about their money investors tried to sell their stocks –This leads to a huge decline in stocks –Stocks were worthless now People who bought on “margins” now could not pay Investors were average people that were now broke

Farmers were already feeling the effects –Prices of crops went down –Many farms foreclosed People could not afford luxuries –Factories shut down –Businesses went out Banks could not pay out money People could not pay their taxes –Schools shut down due to lack of funds Many families became homeless and had to live in shanties

Many waited in unemployment lines hoping for a job.

People in cities would wait in line for bread to bring to their family.

Some families were forced to relocate because they had no money.

MANY FAMILIES HAD VERY LITTLE

LINES FOR FREE SOUP NYC, 1930

COVER OF TIME MAGAZINE OCTOBER, 2008 DOES THIS PICTURE LOOK FAMILIAR?

K-BAIN MAY 2, 2009 Brooklyn Food Conference Bring Resume Submit form by April 22, 2009