Your Questions About Stock Market Crash Of 1929
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Your Questions About Stock Market Crash Of 1929

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Your Questions About Stock Market Crash Of 1929 Your Questions About Stock Market Crash Of 1929 Document Transcript

  • Your Questions About Stock Market Crash Of 1929Helen asks…10 facts about the 1929 stock market crash?Im supposed to write something for my English class about the stock market crash of 1929.However, everything I read makes it extremely complicated. Can someone help me out?Steve Winston answers:If I were you Id take what you can from this:http://en.wikipedia.org/wiki/Wall_Street_Crash_of_1929andhttp://www.britannica.com/EBchecked/topic/566754/stock-market-crash-of-1929andhttp://www.econlib.org/library/Topics/HighSchool/MonetaryPolicyandtheFederalReserve.htmlthis is a discussion of the effect of smoot-hawley on the stock market, specifically helping it sink:http://www.econtalk.org/archives/2010/01/rustici_on_smoo.html 1/9
  • Unfortunately it is somewhat complicated. Basically there was a bubble in the stock marketcreated by too much credit created by the Federal Reserve. This fostered an atmosphere ofeasy money and speculation (similar to the recent housing bubble) in the stock market. Also,smoot-hawley, and some other actions taken by President Hoover prolonged the problem.Ken asks…What are similarities between the 1929 stock market crash and thesub-prime mortgage crash today?I have to write a social studies essay on the similarities between the 1929 stock market crashand the sub-prime mortgage crash.I need 3 good points, and I have to expand on every one of them, so I would appreciate somedetail. Great! Thanks a lotSteve Winston answers:1. Both times, credit was easy to get. 2/9
  • In both times, people could borrow easily.2 Both time, there was rampant speculation which created bubblesIn the 20s, the speculation was in stocks, which led to a huge bubble in the stock market. In thecurrent period, the speculation was in housing, which led to a huge buble in the housing market.3. In both cases, government regulation was weak.In the 20s leading up to the crash, the two presidents were Warren Harding and CalvinCoolidge, both of whom essentially had the belief that they should to as little as possible. In bothterms, the government regulation was weak, leading to poor decisions being made by thebanks.In the current times, George Bush believed very strongly in minimizing government regulation.Government regulatory agencies became do-nothing organizations, which allowed mortgagebankers to essentially create fraud, openly encouraging loan applicants to lie on theirapplications and developing products that they knew would kick people out of their homes andwreak financial devastation.Carol asks…What were three influential Canadians that were involved with the1929 stock market crash?I have a culminating assignment to do on the 1929 stock market crash. We need to find threepeople (with varying opinions and points of view) in order to explain the chronology stockmarket crash. 3/9
  • If anyone could help me think of any people (political candidates, activists, etc.) that were veryinfluential to the stock market crash, that would be great!!Ps: They should be CanadianSteve Winston answers:HmmmmmmmmmmmDaniel asks…How the stock market crash of 1929 could have been prevented?could the 1929 crash of the stock market been prevented? How? Did the government doanything that could have caused the stock market to crash during 1929? 4/9
  • Steve Winston answers:This would be a book or an extensive thesis or dissertation.No one is going to do that homework here.I can tell you that the gov screwed up the economy and the market and kept the US inDepression for raising taxes on individuals, and on business and created socialist programs thatif not addressed properly could create sever financial issues for the the USA in the future.Frontline: $10 Trillion and Countinghttp://www.pbs.org/wgbh/pages/frontline/tentrillion/Note: the first part (of the above program) is Bush bashing with some good arguments. The lastpart where they show the graphs and address actual projections of entitlements and not arguesolely on politics is what I would pay attention to.In addition during the late 1920s, the FED made a series of pre-Depression interest rate(increase) blunders just like it did in 1998-2000, and 2004-2006.Richard asks…Corporations during the stock market crash of 1929 and later 5/9
  • depression?Question for history class:Many corporations survived the stock market crash of 1929 but failed during the ensuingdepression. Explain how this could happen.I realize how they failed during the depression, but not exactly how they survived the stockmarket crash. Thanks for any help!Steve Winston answers:The biggest reason companies didn’t fail when the market crashed is that stock price hasnothing to do with company success.So just because a stock price falls by 70% does not mean that sales fell by 70%. During everymarket downturn some companies have falling stock prices in the face of rising sales. Thedepression is particularly acute because the lofty stock prices seen prior to the crash were dueto speculation and low margin requirements, not due to economic performance.Laura asks… 6/9
  • Was it the "Dead Cat Bounce" when investors jumped out ofwindows during the 1929 stock market crash?When investors jumped out of their windows on Wall street during the 1929 stock marketcrash in the USA, was that the "Dead Cat Bounce" ???If so, how high did the investors bounce?Steve Winston answers:Http://www.cracked.com/article_18487_6-ridiculous-history-myths-you-probably-think-are-true.htmlDavid asks…How did President Hoover respond to the stock market crash of 7/9
  • 1929 and the subsequent depression? What was the?How did President Hoover respond to the stock market crash of 1929 and the subsequentdepression? What was the impact of his approach? What was the human toll of the GreatDepression?Steve Winston answers:President Hoover actually did very little during the time. He believed eventually the economywould eventually fix itself. The great depression never started in America. It was already badthroughout the world. However, back to your question. If you really want a human toll youdhave to include WWII because the great depression was the driving force fascistshe facisits.Robert asks…How was profit made in the stock market crash of 1929?This is from a website about the stock market crash of 1929: 8/9
  • "For every dollar invested, a margin user would borrow 9 dollars worth of stock. Because of this leverage, if a stock went up 1%, the investor would make 10%! " I dont understand how the 10% profit was made. How WAS the 10% profit made? Please help! Thanks! Steve Winston answers: Yippee, Kara! I still dont know, but I hope you get an answer soon! Powered by Yahoo! Answers Read More… Your Questions About Stock Market Crash Of 1929 9/9Powered by TCPDF (www.tcpdf.org)