1.  1) What do you think this quote is talking about?  2)What does this quote tell us about this era of history?  "Three or four million heads of households don't turn into tramps and cheats overnight, nor do they lose the habits and standards of a lifetime... They don't drink any more than the rest of us, they don't lie any more, they're no lazier than the rest of us.... An eighth or a tenth of the earning population does not change its character which has been generations in the molding, or, if such a change actually occurs, we can scarcely charge it up to personal sin." - Federal relief administrator Harry Hopkins, 1933 39 39

2. Unit 7

3.  Even though the 1920s was a period of prosperity, there were many things that undermined the economy  The 1930s would suffer for the wealth and practices of the 20s  It could happen again!

4.  Stock is ownership of a company  Companies sell ownership stakes to raise money  Bull market = Long period of rising stock prices

5.  1920s Bull Market convinced people to invest in stocks  Speculation (or betting) led to people investing $$ thinking market would continue bull run (think housing market)  Margin allowed people to buy stock with only a little money

7.  Turn to page 233 in your textbook and analyze the chart “The Market Falls”  Answer questions 1 & 2 in your notes  Be prepared to share out to the class in 3 minutes

8.  Prices in stocks began to fall when people stopped putting money into the market  This led to stock owners selling their stock  As more stock became available prices dropped  People who had invested and not sold now owned worthless stock

9.  Market crash hurt banks 2 ways:  1) Banks had lent $$$ to people buying stock  2) Banks had invested $$ in market Banks stopped lending money = people were not buying Banks start going out of business which leads to a -> BANK RUNBANK RUN Banks make money by lending your money to others and collecting interest. If too many people withdraw their $$$ at once bank can’t give it to everyone

10.  With a partner read and analyze the chart on page 235  Answer the questions pertaining to the chart  Be prepared to share out in 5 minutes

11.  The Great Depression 1929 – Part 2 How did Hoover respond? What role did Rockefeller play? What happened at the banks when the market crashed? What were the underlying causes? How did Hoover make it worse? How did families get by during this time?