1. The stock Market Crash of 1929

2. 1920s Booming Economy ____________________________
Stock Market was soaring
_________________________________________________________________________
1920s fad – get into the market

3. Economic Danger Signs _____________________________________
Why is this dangerous?
____________________________________________________________________________
Too many products, not enough consumers buying
______________________________________

4. More Economic Danger Signs
_______________________
___________________________________ _____________ – Laissez Faire/Republican Presidents
Market value based on borrowed $ and over speculation instead of real value
Increase in personal debt – (Credit debt and installment plan debt)
_______________________________________________________________________________________________________________

5. The Warning Sign _____________________________________
Farmers paid by gov. to make food for allies, creates a huge surplus
______________________________________ ______________________________________
6,000 banks close out West
What are the consequences?
______________________________________
Laissez-Faire

6. Black Thursday Black Thursday Oct. 24th, 1929
__________________________
Brokers panic
______________________________________
______________________________________ _______________
What’s a margin call?

7. Black Tuesday October 29th, 1929 Stocks plunge again
Value of market falls
_________________________________
________________________________________________________
Thousands lose everything

8. Immediate Effects of the Crash
____________________________________
___________________________________________________________________
Hundreds of banks close
No $ to pay back loans = empty savings accounts
__________________________________________________________________________
No bank insurance
___________________________________