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Unit #8 The Great Depression of 1930s

Unit #8 The Great Depression of 1930s. LESSON #8:1 The Crash of the Economy. p. 232-236. What do the graphs tell you?. The long “Bull Market”. (reference p. 232-233) What was the 1920s like, that kept people gambling their money in the stock exchange? What is a Bull Market?

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Unit #8 The Great Depression of 1930s

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  1. Unit #8The Great Depression of 1930s LESSON #8:1 The Crash of the Economy p. 232-236

  2. What do the graphs tell you?

  3. The long “Bull Market” (reference p. 232-233) • What was the 1920s like, that kept people gambling their money in the stock exchange? • What is a Bull Market? • What was buying on margin? • Why did people just start selling their stocks in 1929? • What happens at the “margin call?

  4. The Crash of the Market • What does it mean that prices “peaked”? • On Monday, Oct. 21, 1921 prices started _____________ • Once prices started falling, speculators knew they earned as much as they could on “inflated” stocks. • What does “inflated” value mean? • What happened on “Black Tuesday”? • How much was lost?

  5. The Collapse of the Economy • The stock market crash only effected _________, not most Americans • The way the banks were effected THEN hurt the average American • What had banks done during the “long bull market” of the 1920s? • When the banks were unable to collect on some of their investors, they stopped lending $$ to businesses. • What were businesses then unable to do? • If a bank could not survive the losses and had to close, what happened to your savings in that bank? • What is a “bank run”? • This started the collapse of the whole economy

  6. Your analysis: • Could anything have been done to prevent the crash of the stock market in October 1929? • Could the depression have been prevented if the stock market never crashed?

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