1. In your notes create a list of how life was good in the Roaring 20’s.
Life is Good
In your notes create a list of how life was good in the Roaring 20’s.

2. The Great Crash of 1929

3. Stock marketing was SOARING!
Before the Crash (1920’s)
Stock marketing was SOARING!
Bull Market
1925
$27 Billion
1929
$87 Billion

4. Signs of Trouble
Ordinary people went into debt buying new, exciting goods on credit

5. Signs of Trouble
Industries were producing more goods than consumers could buy
Widespread speculation
Making high risk investments with borrowed money

6. Signs of Trouble “Buying on Margin”
Purchase stock for only a fraction of the price and borrow the rest from brokerage firms

7. GREAT CRASHES

8. The Crash!!!

15. October 23, 1929 The start of the crash
Dow dropped 21 points an hour!!
Margin Call
Brokers demanded repayment of loans
Worried investors began to sell rapidly

16. A record 16.4 million shares sold
Black Tuesday
October 29, 1929
A record 16.4 million shares sold

17. Aftermath of the Crash
If the Stock Market Crash was a cause, what would the effect be?