Do anyone know how did the stock market crash before the great depression?
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Speculation in the 1920s caused many people to by stocks with loaned money and they used these stocks as collateral for buying more stocks. Broker's loans went from under $5 million in mid 1928 to $850 million in September of 1929. The stock market boom was very unsteady, because it was based on borrowed money and false optimism. When investors lost confidence, the stock market collapsed, taking them along with it.\n\n\ncheck out the source, it has more information
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Because of the Great Depression
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I was not around then but definitely studied history and this comes to mind:\n\nPresident H. Hoover, 1932 - government loans to banks.  End of November 1,493 banks have suspended operations.  \n\nIt already started crashing from the America's economy in the 1920's to a sudden end in Oct 1929 - before the Wall Street Crash.   Then America started facing economical crisis that even impacted other coutries including Germany, a country that built up their economy on American loans.  Then the wealth from the 20's was dissapearing fast.\n\nThe rich lost money on Wall Street crash. The rest of Americans could not afford to lose any money then. Afterwards, noone had money to invest nor to buy comsumer products. \n\nThere was not shopping of any kind, and stores, factories, farmers, restaurants, industries, had no reason to employ people who were making products that were not being sold. \n\nUnemployment reigned. The depression took a while to get going but by the winter of 1932, it reached his top.\n\nAt the time there where: 12 million people out of work, 12,000 people being made unemployed every day, 20,000 companies had gone bankrupt, 1616 banks had gone bankrupt, 1 farmer in 20 evicted, and sadly, 23,000 people committed suicide in one year - the highest ever in the history of the US.\n\nIn addition: we had many social problem which, in spite of being such rich country we continue to have.  They were and still are:\n\nUnemployment and poverty \nBreakdown of families\nSoaring high school dropout rates (2 to 4 million)\nHomelessness\nOrganized protests\n\nAt the time, the American people  laid the blame on:\n"Three B's" then responsible for the Wall Street Crash and the Depression:\n\nThe "Bankers"\nThe "Brokers"\nThe "Businessmen"\n\nI am not sure this answer your question but that what I thought of as soon as I saw your date onthe screen!\n\nBye....
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wow spakarun really wants you to think it was that bad. come on man, chin up, it wasn't like we were all living in a Jewish ghetto.\nYes, times were hard, especially for inner city people and farmers out west. It wasn't called the Great Depression for nothing. But the people weren't turning on each other like dogs. Families were working together, supporting each other. In some parts of America, like the Ohio valley, farming was still successful. The people also turned to silent movies and radio to take their mind off their troubles, which helped Hollywood become the booming place it is today.\nThe point of the question was women in the 1930's. Women had the right to vote. Many of them had turned from the ankle-length skirts of their grandmothers, and were wearing more modern dresses, with short sleeves and hemlines to their knees.\nMost of them still prefered to stay home and be housewives, unless they were single or widowed. In those days, if a married woman was working, it was a shame on her husband. \n.
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If I remember correctly, wars generally have a positive affect on the stock market.\n\nThink about it-- take public money (yeah, OUR money), spend a boat-load of it on military equipment, supplies and salaries that are provided (more and more now) by private companies.\n\nThey hire people, make more money-- stock price goes up.\n\nthat's the theory anyway.  \n\nmarket is more worried about inflation and oil prices than the war.
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No.  Currently the fed fears that the ecomony is growing too fast.  That is why the interest rates keep going up.  I don't think we'll see a depression like in the thirty's because there were laws passed to prevent it.\n\nIn 1929, before the era of the Securities and Exchange Commission (SEC), stocks were bought on margin.  Margin allows you to buy much more stock while only putting down pennies on the dollar of the value.  The problem with margin is that if the stock goes down in value a margin call is required and people must pay in more money to cover the decline.\n\nThe crash of 1929 was caused by people not being able to cover the margin calls and defaulting.  Obviously this wasn't the sole factor just the biggest.\n\nThe federal securities and exchange act created the SEC and made trading on margin much more restricted to insure against a mass default in the future.
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The Great Depression was an economic slump in North America, Europe, and other industrialized areas of the world that began in 1929 and lasted until about 1939. It was the longest and most severe depression ever experienced by the industrialized Western world.\n\nThough the U.S. economy had gone into depression six months earlier, the Great Depression may be said to have begun with a catastrophic collapse of stock-market prices on the New York Stock Exchange in October 1929. During the next three years stock prices in the United States continued to fall, until by late 1932 they had dropped to only about 20 percent of their value in 1929. Besides ruining many thousands of individual investors, this precipitous decline in the value of assets greatly strained banks and other financial institutions, particularly those holding stocks in their portfolios. Many banks were consequently forced into insolvency; by 1933, 11,000 of the United States' 25,000 banks had failed. The failure of so many banks, combined with a general and nationwide loss of confidence in the economy, led to much-reduced levels of spending and demand and hence of production, thus aggravating the downward spiral. The result was drastically falling output and drastically rising unemployment; by 1932, U.S. manufacturing output had fallen to 54 percent of its 1929 level, and unemployment had risen to between 12 and 15 million workers, or 25-30 percent of the work force.\n\nThe Great Depression began in the United States but quickly turned into a worldwide economic slump owing to the special and intimate relationships that had been forged between the United States and European economies after World War I. The United States had emerged from the war as the major creditor and financier of postwar Europe, whose national economies had been greatly weakened by the war itself, by war debts, and, in the case of Germany and other defeated nations, by the need to pay war reparations. So once the American economy slumped and the flow of American investment credits to Europe dried up, prosperity tended to collapse there as well. The Depression hit hardest those nations that were most deeply indebted to the United States, i.e., Germany and Great Britain. In Germany, unemployment rose sharply beginning in late 1929, and by early 1932 it had reached 6 million workers, or 25 percent of the work force. Britain was less severely affected, but its industrial and export sectors remained seriously depressed until World War II. Many other countries had been affected by the slump by 1931.\n\nAlmost all nations sought to protect their domestic production by imposing tariffs, raising existing ones, and setting quotas on foreign imports. The effect of these restrictive measures was to greatly reduce the volume of international trade: by 1932 the total value of world trade had fallen by more than half as country after country took measures against the importation of foreign goods.\n\nThe Great Depression had important consequences in the political sphere. In the United States, economic distress led to the election of the Democrat Franklin D. Roosevelt to the presidency in late 1932. Roosevelt introduced a number of major changes in the structure of the American economy, using increased government regulation and massive public-works projects to promote a recovery. But despite this active intervention, mass unemployment and economic stagnation continued, though on a somewhat reduced scale, with about 15 percent of the work force still unemployed in 1939 at the outbreak of World War II. After that, unemployment dropped rapidly as American factories were flooded with orders from overseas for armaments and munitions. The depression ended completely soon after the United States' entry into World War II in 1941. In Europe, the Great Depression strengthened extremist forces and lowered the prestige of liberal democracy. In Germany, economic distress directly contributed to Adolf Hitler's ri
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It was actually a bank in NY I believe that needed to borrow money, other banks refused and so did the FED, which led to the bank going under and then the stock market crash. I'll do a little research to give you dates etc...but that's what I was taught last term in college econ. class.\n\nI don't have my notes with me so I don't remember exactly how it all fell together, but I have provided some sites for refrence. I hope this helps a little even if my answer is garbled.\n\nAnd I think it was the stock market crashed so everyone rushed to the banks to withdrawl their money...since the banks loan out about 90 percent of their money there wasn't enough to return to people, which lead to the need for a loan...etc etc. \n\nI remember that this guy had the tellers act normal in the crisis. Tell them sure they could close the account and give them their money and COUNT THE MONEY OUT SLOWLY, act normal even if the lines were long, don't stress out, etc etc, after a few days of doing this, eventuallly things seemed normal and the panic dwindled down to normal. \n\nStill researching...for sites\n\nthis one is good really good MSN seems to always provide good information it's 2 pages though http://encarta.msn.com/encyclopedia_761584403/Great_Depression_in_the_United_States.html also a few other sites. Hope this helps. Are you doing a report?
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If you are talking about F.D.R. The great depression was a major cause of the New Deal, he was basically trying to boost the economy. If you want to know more about the Great Depression then you can contact me.
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In October 1929 the stock market crashed, wiping out 40 percent of the paper values of common stock. By 1933 the value of stock on the NYSE was less than a fifth of what it had been at its peak in 1929. Farm income fell some 50 percent. By 1932 every fourth Americans was unemployed.
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Ha ha u stink, my teacher was a softy, we just finished reading of mice and men and he never gave us h.w.\nThe farm depression of the 1920s:\nGreat Depression in the United States, worst and longest economic collapse in the history of the modern industrial world, lasting from the end of 1929 until the early 1940s. Beginning in the United States, the depression spread to most of the world’s industrial countries, which in the 20th century had become economically dependent on one another. The Great Depression saw rapid declines in the production and sale of goods and a sudden, severe rise in unemployment. Businesses and banks closed their doors, people lost their jobs, homes, and savings, and many depended on charity to survive. In 1933, at the worst point in the depression, more than 15 million Americans—one-quarter of the nation’s workforce—were unemployed.\n\nThe depression was caused by a number of serious weaknesses in the economy. Although the 1920s appeared on the surface to be a prosperous time, income was unevenly distributed. The wealthy made large profits, but more and more Americans spent more than they earned, and farmers faced low prices and heavy debt. The lingering effects of World War I (1914-1918) caused economic problems in many countries, as Europe struggled to pay war debts and reparations. These problems contributed to the crisis that began the Great Depression: the disastrous U.S. stock market crash of 1929 (see Black Monday), which ruined thousands of investors and destroyed confidence in the economy. Continuing throughout the 1930s, the depression ended in the United States only when massive spending for World War II began.\n\nThe depression produced lasting effects on the United States that are still apparent more than half a century after it ended. It led to the election of President Franklin Delano Roosevelt, who created the programs known as the New Deal to overcome the effects of the Great Depression. These programs expanded government intervention into new areas of social and economic concerns and created social-assistance measures on the national level. The Great Depression fundamentally changed the relationship between the government and the people, who came to expect and accept a larger federal role in their lives and the economy.\n\nThe programs of the New Deal also brought together a new, liberal political alliance in the United States. Roosevelt’s policies won the support of labor unions, blacks, people who received government relief, ethnic and religious minorities, intellectuals, and some farmers, forming a coalition that would be the backbone of the Democratic Party for decades to come.\nSorry- this is the best I can find for education during the 1930s:\nEconomics dominated politics in the 1930's.  The decade began with shanty towns called Hoovervilles, \nnamed after a president who felt that relief should be left to the private sector, and ended with an alphabet soup of federal programs funded by the national government and an assortment of commissions set up to regulate Wall Street, the banking industry, and other business enterprises. The Social Security Act of 1935 set up a program to ensure an income for the elderly. The Wagner Act of 1935 gave workers the legal right to unionize.  John L. Lewis founded the Congress of Industrial Organizations (CIO) and conditions for blue-collar workers improved. Joseph P. Kennedy, a Wall Street insider, was appointed Chairman of the Securities and Exchange Commissions.
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People were poor because of the Great Depression.
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In the Great Depression, society was in chaos. The global economy had collapsed due to several factors. Countries had trade barriers called tariffs, that taxed international trade and limited production and employment. As well,  workers were not paid enough to purchase the goods made in the factories. Farm incomes were down as food production increased after World War I, so farmers lost money. Then along came Black MOnday, October 28, 1929 where the value of the Dow Jones on Wall Street plummeted bankrupting thousands of people and throwing the economy into further chaos. In those days, people could borrow money to buy on margin at low low percentages. People would borrow a lot of money to play the stock market because they assumed the stock would keep rising. When Black Monday hit, those people were wiped out financially. Overnight.\n\nThen, in the early 1930's a new phenomenom took place - drought on the Great Plains. Farm land turned to dust and blew off. Grasshoppers flourished in the heat, eating crops that did grow. People packed up from Oklahoma and other plains states and moved to somewhere else - anywhere where there was a hint of opportunity. California actually had roadblocks turning people away at the state line!\n\nYounger people were hardest hit. Marriage rates and birth rates declined as young people held off getting married and having children. Young men left home in their teens - some as young as 14 or 15 - and led the hobo life, knocking on doors seeking work for a meal or a place to lay their head. Cars and trucks had their front ends removed and hitched up to horses. Bikes were known as Hoovermobiles, after Herbert Hoover, the president of the day.\n\nFor children, life was hard. At times in many families the mother and father went hungry so the children would not go without. My mother remembers when times got hard at the end of the month having the last of the bacon for dinner one night, then having bacon lard sandwiches for lunch the next day. Leftover oatmeal was often a snack after school!\n\nThese conditions lasted for over five years. Things slowly improved, but not to the level of pre=1929. That didn't happen until world war II brought almost full employment and factories sprang up to make the machiens and products required by the war effort.\n\nI hope this helps put it into better perspective for you.
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Most of them were both...the 40's we were still recovering from the stock market crash of 1930 something...but then again, we were in a pre war manufacturing craze. Mass production was at its highest around the 40's.
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The Great Depression was a worldwide economic downturn, starting in 1929 and lasting through most of the 1930s. It ended at different times in different countries. It centered in the United States and Europe, but had damaging effects around the world.\n\nPlease read the below article... it is precise and informative...\nhttp://en.wikipedia.org/wiki/Great_Depression
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The years preceeding the Dust Bowl were very good.  The farmers were booming and they started buying more land to plant more crops.  They started taking out loans to buy the land and machines.  Then there was a drought.  They had all this land that they cleared for crops and and the crops died.  So when the plants died from lack of water and the wind came it blew all that loose dirt everywhere.  So there was little food and everything was dirty.  If they had no crops to sell they didn't have money.  Loans on the property and machinery started to foreclose.  This was one factor of the Great Depression.  Now if you drive through a state like Oklahoma you will see a single row of trees planted.  These are called windbreaks.  It is supposed to prevent loose dirt being blown around again.
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People invested heavily with borrowed money and insider trading was out of control....so they say.  When the stock market chucked, none of the banks could get their money back because none of the investors had the money to do it.  People rushed to the bank to take out any money they had.  People who had money in the bank couldn't even get it back because the banks had loaned it out to investors.  There were no rules like we have today against some of these shady procedures.  There was no social security or public aid to help out the old/poor people.  Also, I don't think your money was insured by the bank like it is today.