1. The Great Depression How did the Great Depression begin, and what did the United States do to fight against it?

2. Key Vocabulary Credit: _______________________________ _______________________________________ Buying on margin: ______________________ ______________________________________ Stock Market: A particular market where stocks and bonds are traded. Hoovervilles: __________________________ _______________________________________

3. Stock Market Crash of 1929 ____________________________________ – ______________________________________. – Some who could not afford the stocks full price began buying on margin Stock prices peaked in the summer of 1929. – Prices started to drop. – _________________________________________ __________________________________________

4. Black Tuesday ____________________________________________ ____________________________________________ On Thursday, October 24, panic hit the stock market. – Within three hours the market lost $11 billion in value. On Monday, October 28, prices dropped again. __________________________________________ – ______________________________________________ ________________________________________________ ___________________________________

5. How did Stock Market Crash? BANK Lends out $100 to Person 2 Stock Market, with everyones money, crashes-banks close $100 Person deposits $100 into bank Person 2 takes the $100 and invests into the stock market

6. The Economy Follows the Stock Market _____________________________________ – Customers unable to pay back bank loans – _________________________________________ _________________________________________ _________________________________________ ____________________________ – Customers rushed to banks to withdraw their money. – ______________________________

7. President Hoovers Reaction _____________________________________ _____________________________________ _____________________________________ – Resisted giving direct assistance to individuals _____________________________________ _____________________________________ Hoovervilles, or groups of tin and cardboard shacks, were built.

11. Roosevelts New Deal _______________________________________________ Said that economic recovery was possible _________________________________________________ A New President Roosevelt called special session of Congress that became known as the Hundred Days. _______________________________________________________________ _______________________________________________________________ ______________________________________________ The Hundred Days

12. Roosevelt Restores Confidence Roosevelt worked to restore confidence in American banks. – ________________________________________ – Government inspected finances of a bank before it was allowed to reopen. ______________________________________________ – _____________________________________________________ – Gave many chats over the course of his administration