1. Economic Troubles Brewing in the Late 1920s & Intro to the Stock Market

3. Jigsaw Page 464 in textbook Economic Troubles on the Horizon – Industries in Trouble – Farmers Need a Lift – Consumers Have Less Money to Spend – Living on Credit – Uneven Distribution of Income

4. Election of 1928 Herbert Hoover (R) vs. Alfred E. Smith (D) Hoover – Secretary of Commerce under Harding and Coolidge – Never ran for office Smith – Career politician, four terms as Governor of New York – Enjoyed the limelight Hoover’s Advantage – Ability to point to the years of prosperity under the republican party – “We in America are nearer to the final triumph over poverty than ever before.”

5. Stock Market 101 New York Stock Exchange (NYSE) Dow Jones Industrial Average – Barometer of stock market’s health – Measured based on prices of 30 large firms from the NYSE

6. Stock Market 101 Bull Market = period of rising stock prices (buy stocks and bonds) Bear Market = period of falling stock prices (sell stocks and bonds) Speculation = buying stocks and bonds on the chance of a quick profit (ignored risks) Buying on Margin = paying small percentage of stock’s price and borrowing for the rest

8. Video http://www.youtube.com/watch?v=_2Kt4moE S0U http://www.youtube.com/watch?v=_2Kt4moE S0U

9. Exit Cards What were some economic problems at the end of the 1920s that would lead to the economic depression of the 1930s? Hypothesize why speculation and buying on margin led to the stock market crash of 1929.