"I'm In The Market For You"   I'll have to see my broker Find out what he can do. 'Cause I'm in the market for you. There won't be any joker, With margin I'm all through. 'Cause I want you outright it's true. You're going up, up ,up in my estimation. I want a thousand shares of your caresses too. We'll count the hugs and kisses, When dividends are due, 'Cause I'm in the market for you.

What happened to the Economy during the 1920’s. (i. e   What happened to the Economy during the 1920’s? (i.e. stocks, credit, goods) The economic boom with the 1920’s came with the notion that everyone could be rich. A person would simply have to invest in the stock market. The stock of businesses that made modern marvels like the radio skyrocketed through the 1920’s. Not only were individuals buying homes, cars, refrigerators, and radios on credit, they were also buying stocks on credit (borrowed money) in hope that the stock would rise so that one would break even and earn money.

Many industries overproduced their goods (automobiles, radios, and crops) and were forced to lay off workers. Many businesses were forced to close.

What happens when they panic and run on the bank? On October 24, 1929. 12,894,650 shares changed hands on the New York Stock Exchange-a record. To put this number in perspective, let us go back a bit to March 12, 1928 when there was at that time a record set for trading activity. On that day, a total of 3,875,910. The stock market fell 60% in Oct.   What happens when they panic and run on the bank?

Reasons for the Crash Recap Buying stocks on __________ Stock values (increased or decreased) In reality, the economy was (growing or decreasing) Stocks became _________ when no one wanted them The Market _____________ on Oct. 29th People run to the _______to protect their ____________ Banks run out of funds because of too many _______ People are now ____________, ______________, _________, etc…

Reasons for the Crash Recap Buying stocks ‘On Margin’ Stock values inflate/ increase In reality, the economy was decreasing (autos, textiles) Stocks become worthless when no one wants them Market crashes People go to banks to protect their savings Banks run out of funds because of too many loans People left in ruin, without savings, worthless stocks, unemployed, homeless…

On Margin

The Depression

Joblessness 1927- 1.6 Million 1933- 13 Million – 25% of the population Foreclosures- 5% of all farms Suicide Rate increased 30%

Long Term Causes Structural Problems Decline in Luxury Buying Overproduction Decline in Farm Prices Fed Reserve System: Tight money policy Global Depression: Post WWI Psychological Panic

Poor Manager of the Great Depression Pro-business Hoover saw the depression as one of many economic cycles and anticipated a rebound. Localism and Private Industry- Believed in laissez-faire capitalism, refused to provide direct federal assistance when the market crashed, forcing millions of Americans into poverty. Unlike FDR, he was opposed to lending money directly to the people. He believed in “trickle-down economics.”

The RFC and Public Perception of Hoover’s Response (1931-RFC) Reconstruction Finance Corporation channeled millions of dollars a day to aid insurance companies, banks, agricultural organizations, railroads, and local governments. .Hoover vetoed relief bills, waiting for his "corporate welfare" program to work. He seemed uncaring, unwilling to admit that people were starving and that his ideas were failing.

Summer 1932, called in General MacArthur to drive out the Bonus Army protesters camped on the capital lawns. MacArthur used cavalry, tanks, and bayonet-bearing soldiers who clubbed women and children, tear-gassed the marchers, burned their shacks, and forcibly drove them across the Potomac. Increasing layoffs- GM and US Steel Hoovervilles, Hoover Hogs, Hoover Blankets, Hoover Valley, Hoover flags

Hoover Hog

Election 1928

Election in 1932