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Depression Credit Crisis
 

Depression Credit Crisis

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Credits to vineesh1 for the pictualization of the modern credit crisis.

Credits to vineesh1 for the pictualization of the modern credit crisis.

This is a powerpoint I used in class to discuss the onset of the great depression.

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    Depression Credit Crisis Depression Credit Crisis Presentation Transcript

    • Bellwork
      • Identifying a sick person is usually easy. -How can you identify a sick economy? -What factors are you looking for? (3 sentences minimum)
    • The Great Depression Chapter 22 section 2
    • Great Depression
      • What words do you associate with depression?
      • Do part A of your worksheet (Check a column for each term)
    • Objectives
      • Link elements of the Great Depression to the modern economic situation
      • Analyze the effects of the US Depression on the world economy
    • Boom!
      • Due to prosperity of 1920s
        • People grew and made more than they could sell
      • Industries that grew in WWI lose
        • R/Rs, textiles, steel
      • People were living on credit
        • Buy now, pay later
    • Stock Market
      • Dow Jones had gained nearly 300 points in 5 years
        • Was at 381, up from 100
      • People bought under speculation
        • Trying to make quick profit
      • Some borrowed to buy stocks
      • Inflates company value
    • Peak and Fall
      • Prices hit an all-time high
        • People tried to profit
        • Others saw it as a collapse; sold
      • September 1929, Stocks crash
      • October 1929, massive selloff
      • Marks the start of the Depression
    •  
    • Bank Effect
      • Banks make money how?
        • People were scared, withdrew
      • 11,000 / 25,000 disappear: 3 years
      • No insurance; fortunes lost
      • Businesses crash, jobs gone
    • World Affected
      • Europe had to worry about paying off war debt
        • Germany: reparations
      • Americans couldn’t afford European goods any more
        • Europe loses money
          • Joins Great Depression on their own
    •  
    • Hey dude! Would you like to own a house ?? A house you can call home??
    • Come on, don't gimme that Reh-tarded look. You know you can have it!
    • But....but...I don't 'ave any mooney !!
    • But....but...I don't 'ave any mooney !! Who on earth gave you the idea that you need money to buy a house ???
    • But....but...I don't 'ave any mooney !! Who on earth gave you the idea that you need money to buy a house ??? All you need is to D-R-E-A-M and D-R-E-A-M BIGG!!
    • unn..umm! Sorry, I din't attend school !! I tend to assume certain things...
    • unn..umm! Sorry, I din't attend school !! I tend to assume certain things... No problem !! You don't need to care when I am here !
    • But..who are you, o' God of the Godless ??
    • But..who are you, o' God of the Godless ?? Aah...come on!! Nothin' like that., I'm Mr. Hotshot from the Teddy Mac group .
    • Hey, Boss! I've managed to get a record number of people on loan list .
    • This is going to be the most enticing philosophy of the century! The tenet of marrying shrewd investment decisions peppered with lil' philanthropy and dreams of a home for the making and voila!! You get an unforgettable combo!! Oh,yeah!! Finally my strategy seems to be paying off.. Risk Return
    • You stay here, while I cook up another package.. Look, how I mint more money using these loans ....OH MY GAWD, my intelligence and business sense doesn't seem to know any boundaries!! Risk Return
    • Here it is!! A pocketful of sunshine !! Loan securities wrapped in a bundle of joy for the investors! Securities to cuddle up with , which exude a warmth of knowing that your money is growing itself.. but, at the end of the day, they are risky ...
    • Oh Come On!! Shakespeare is passé .. There's a lot in a name.. we'll call it.. the Alpha Grade Structured Credit Enhanced Growth Fund !! Can anyone refute the weight this name carries?? No...not at all, but, are u sure they aren't risky??....umm..lending to these people who don't deserve it..what if they don't pay??
    • Hail you boss!! Hail you !! Boss!! Foreclosure my boy ... Foreclosure .. The property they own, would obviously become an asset few years down the line. Even if the chap fails to pay, we get the property , whose value has to increase ! The greatest plight a genius has to suffer is to explain himself and his vision to these non-Wharton grads!!
    • Hey boss!! The people are not paying their debts..
    • Hey boss!! The people are not paying their debts.. Seize the property .. why disturb me??
    • Everyone’s selling !!! Property rates are falling like Nine Pins !
    • OH MY GOODNESS...FILE FOR BANKRUPTCY.....WE ARE DOOMED....WE NEED A BAILOUT...WE WERRE DOING GOOD...MUMMMEEEEE Everyone’s selling !!! Property rates are falling like Nine Pins !
    • Hot Shot Hotter Shot Hottest Shot