The Stock Market CRASH


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The Stock Market CRASH

  1. 1. The Stock Market Crash Wednesday, March 21, 2007
  2. 2. Collapse <ul><li>Have you ever felt like all was going great in your life… But then everything collapsed? </li></ul><ul><li>What did that feel like? </li></ul><ul><li>Why did it happen? </li></ul><ul><li>Today we will learn about the greatest economic fall in our history. </li></ul><ul><li>Today we will learn about The Stock Market Crash. </li></ul>
  3. 3. New York Stock Market Crash
  4. 4. Stock <ul><li>Stock – A stock represents a share in the ownership of an incorporated company. </li></ul>
  5. 5. New York Stock Market Crash <ul><li>Stock Market Crash – On October 29 th 1929 the market “crashed” as prices went into free-fall. </li></ul>
  6. 6. Why?
  7. 7. Gambling on Stocks <ul><li>As stock prices rose in the 1920’s, people hoped to get rich quickly. </li></ul><ul><li>They bought on credit, paying only a small part of a stock’s value, and promised to pay rest later. </li></ul><ul><li>When the market crashed they could not pay. </li></ul>
  8. 8. Overproduction <ul><li>The 1920’s saw rapid increases in the production of new goods like cars, radios, and refrigerators. </li></ul><ul><li>Manufacturers were soon producing more goods then consumers could buy. </li></ul>
  9. 9. Uneven Distribution of Income <ul><li>Even in the prosperous 1920’s, half the population lived at or below poverty line. </li></ul><ul><li>The income of farmers declined; Minorities suffered from unemployment and low-paying jobs. </li></ul>
  10. 10. Shrinking International Trade <ul><li>American tariffs protected markets in the U.S., but made it difficult for U.S. to sell abroad due to other countries having tariffs of their own! </li></ul>
  11. 11. Shaky Banking and Credit <ul><li>The banking system was unregulated . </li></ul><ul><li>Bankers often put their depositors money into bad investments. </li></ul><ul><li>Consumers bought on credit more then they could afford. </li></ul><ul><li>Many banks CLOSED . </li></ul>
  12. 12. Great Depression <ul><li>Great Depression – Worst economic period in U.S. history. </li></ul>
  13. 13. Global Depression <ul><li>Because the top economy in the world fell the rest suffered also. </li></ul><ul><li>Global Interdependence – When conditions in one part of the world are affected by other parts. </li></ul>
  14. 14. The END
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