1. Federal Reserve Monetary Policy

2. Federal Reserve Monetary Policy
The Federal Reserve System was created in 1913 to help stabilize the economy by establishing a central banking system for the U.S.
A major goal is to deal with bank panics.
Monetary policy manipulates the money supply to help strengthen the economy.
At the beginning of the Great Depression, the Fed did not address failing banks, and many scholars argue their idleness worsened the situation.

3. Millions of average Americans began speculating in the stock market in the 1920s. Speculating is buying risky stocks out of a desire to get rich quick, rather than investing because of a sound investment.

4. STOCK MARKET CRASH AND FINANCIAL PANIC
The trading floor of the New York Stock Exchange just after the crash of On Black Tuesday, October twenty-ninth, the market collapsed. In a single day, sixteen million shares were traded--a record--and thirty billion dollars vanished into thin air. Westinghouse lost two thirds of its September value. DuPont dropped seventy points. The "Era of Get Rich Quick" was over. Jack Dempsey, America's first millionaire athlete, lost $3 million. Cynical New York hotel clerks asked incoming guests, "You want a room for sleeping or jumping?"
WALL STREET ON THE DAY OF THE CRASH, OCTOBER 1929

5. Major reasons for the stock market crash in October 1929
Stocks were overpriced due to speculation, meaning they were not worth their sale price
Massive fraud and illegal activity occurred due to a lack of regulation and rules
Margin buying, or buying using credit
Federal reserve policy

6. "Brother, Can You Spare a Dime," lyrics by Yip Harburg, music by Jay Gorney (1931)
They used to tell me I was building a dream, and so I followed the mob,
When there was earth to plow, or guns to bear, I was always there right on the job.
They used to tell me I was building a dream, with peace and glory ahead,
Why should I be standing in line, just waiting for bread?
Once I built a railroad, I made it run, made it race against time.
Once I built a railroad; now it's done. Brother, can you spare a dime?
Once I built a tower, up to the sun, brick, and rivet, and lime;
Once I built a tower, now it's done. Brother, can you spare a dime?
Once in khaki suits, gee we looked swell,
Full of that Yankee Doodly Dum,
Half a million boots went slogging through Hell,
And I was the kid with the drum!
Say, don't you remember, they called me Al; it was Al all the time.
Why don't you remember, I'm your pal? Buddy, can you spare a dime?
Say, don't you remember, I'm your pal? Buddy, can you spare a dime?
END OF POWERPOINT

7. Multimedia Learning’s “Great Depression and New Deal” PowerPoint covers all the major topics throughout the 1930s. The next slide shows the table of contents of the 177 slide presentation.
MML also offers “The Great Crash Stock Market Simulation Game” where students become investors in the Great Bull Market of and in the Bear Market that followed, making and losing fortunes as industrial, rail, and utility stocks rise and fall in this easy to use simulation of the Wall Street frenzy.