Watching the Economy Crumble.  Explain what the stock market crash was  Identify and explain factors that led to the stock market crash.

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Presentation transcript:

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, 1929  Stocks began to fell, they fell by $16 million dollars  The stock market fell apart and crashed  People tried to sell their stocks, but there were no buyers

 1) Weakness in the economy  2) Businesses were producing too much  3) 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 dropped  Unemployment hit railroads, coal and clothing factories  Automobile sales dropped  Banks 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