The document discusses the Wall Street Crash of 1929 and the Great Depression. It describes how rampant speculation in the stock market led to a bubble that burst in October 1929, precipitating the Great Depression. As stock prices plummeted, banks collapsed and unemployment rose sharply. The crash had worldwide effects due to economic interdependence and protectionist policies. Franklin D. Roosevelt was elected in 1932 on a platform of reform with his New Deal programs, which helped regulate the economy and provide relief. World War II eventually pulled the US out of the Depression by stimulating industrial production. The crash demonstrated the need for government intervention to ensure stability.
This covers all of how America got into World War One through how we helped end the war in Europe. It also at the end discusses the treaty of Versailles.
The French Revolution:
- The causes of the revolution
- Maximilien Robespierre and the Reign of terror
- Fall of the Jacobins
- Rise of the Directory
- Napoleon Bonaparte
This presentation informing about great depression 1929. Telling us reasons of great depression, what happen in this processand How to find a solution for the crisis?
This covers all of how America got into World War One through how we helped end the war in Europe. It also at the end discusses the treaty of Versailles.
The French Revolution:
- The causes of the revolution
- Maximilien Robespierre and the Reign of terror
- Fall of the Jacobins
- Rise of the Directory
- Napoleon Bonaparte
This presentation informing about great depression 1929. Telling us reasons of great depression, what happen in this processand How to find a solution for the crisis?
Bubble Spotting - The Great Wall Street Crash of 1929Benjamin Van As
The roaring twenties (1920's) ended with a bang - the 1929 Great Wall Street Stock Market crash wiped out many investors, and had an impact that could be felt around the world. This presentation (which forms part of a larger series on Market Bubbles) gives a short overview on what happened.
http://bubblespotting.blogspot.com/
The Great Depression (1929-39) was the deepest and longest-lasting economic downturn in the history of the Western industrialized world. In the United States, the Great Depression began soon after the stock market crash of October 1929, which sent Wall Street into a panic and wiped out millions of investors. Over the next several years, consumer spending and investment dropped, causing steep declines in industrial output and rising levels of unemployment as failing companies laid off workers. By 1933, when the Great Depression reached its nadir, some 13 to 15 million Americans were unemployed and nearly half of the country’s banks had failed. Though the relief and reform measures put into place by President Franklin D. Roosevelt helped lessen the worst effects of the Great Depression in the 1930s, the economy would not fully turn around until after 1939, when World War II kicked American industry into high gear.
The Great Depression was a major monetary droop in the 1930s. Numer.docxrtodd33
The Great Depression was a major monetary droop in the 1930's. Numerous Americans lost their positions, their investment funds, and their homes. In any case, the United States was not by any means the only influenced nation. The business droop influenced the whole world. Many quality Black Tuesday, when the New York Stock Exchange slammed in 1929, as the significant reason, yet one can not disregard the way that there was not only one single factor causing this financial defeat. Most antiquarians and financial analysts concur that the securities exchange crash was only one of numerous supporters of the droop. As a general rule, it was all the more a sign that things had just turned out badly. To comprehend the Depression's causes, one must go further back. The Great Depression came about because of a blend of efficient and political causes that had been developing since months preceding the accident.
After World War I finished, American ranchers made some troublesome memories making benefits. The homestead despondency of the 1920's was a contributing financial factor to the Great Depression. Ranchers were delivering a surplus and well over what American customers were obtaining. Costs of rural items fell around 40% by 1921 and stayed low for the remainder of the decade. A few ranchers were in so much deficiency they couldn't take care of the home loan on their homestead and needed to lease the land or even leave. Harsh occasions had hit other significant pieces of the economy, also, including vitality, coal mining, railways, shipbuilding, and materials. Organizations had a lot of stock and too barely any purchasers.
Likewise, high taxes and war obligations were political reasons for the Great Depression. America had loaned cash to the United Kingdom and other
European countries in World War I
reparations. This made numerous different economies become dependent on the U.S. economy. As the United States encountered this monetary downturn, numerous different countries were influenced as America demanded reimbursement. European nations couldn't bear to reimburse their obligations. Pressures were additionally exacerbated when the Hawley-Smoot Tariff Act was passed in 1930. In view of the goals of protectionism, this demonstration raised import obligations to secure American ranchers and specialists, bringing about world exchange decrease by 66% from 1929 to 1934 and worldwide financial strain.
The 1920's were a period of incredible financial and innovative development in America. World War I had quite recently finished, and Americans were prepared to take a break from the nervousness of world legislative issues. During this time, known as the Roaring Twenties, Americans were centered around bringing in cash and having a fabulous time. Manufacturing plants worked to make weapons and ammo for the war were restored to produce purchaser items. In any case, overproduction in industry brought about a financial reason for the Great Depression. .
UNIT 5-GREAT DEPRESSION OF 1929 AND THE NEW DEALSanskritiRazdan
The Great Depression was the worst economic downturn in US history. It began in 1929 and did not abate until the end of the 1930s. The stock market crash of October 1929 signaled the beginning of the Great Depression. By 1933, unemployment was at 25 percent and more than 5,000 banks had gone out of business.
When to Consolidate and When not to?
Acquisition Method
Inter-company Entries
Consolidation Working Paper
Combined Financial Statements and how do they differ from Consolidated Financial Statements
Adjustments in Detail
Meaning of Term Structure of Interest Rates
Significance of Term Structure of Interest Rates
What is Yield Curve?
A spot rate and a forward Rate
Theories of Term Structure of Interest Rates
2. What are Securities? Securities can be either stocks or bonds which are sold and bought on the stock market. Maroof Hussain Sabri 2
3. What is the New York Stock Exchange? World’s largest market place for securities Currently membership limited to 1,366 members. Seat obtained by purchasing from existing member Maroof Hussain Sabri 3
4. Interesting Fact: How did Stock Exchange begin? The Exchange evolved from a group of men who used to meet under a buttonwood tree on what is now Wall Street in 1792 to discuss securities Maroof Hussain Sabri 4
6. The Great Bull Market Great American stock exchange boom of 1928-1929 Huge bubble where there were high speculations People made many investments to make big money Maroof Hussain Sabri 6
7. Bull Market sparked by? Growth in American industries Technological progress Increase in productivity Rise in national income from 33,200 million to 79,200 million from 1914 to 1925 Expectation for great future and un-boundless optimism for the market Maroof Hussain Sabri 7
8. What Sparked This Growth in Industry? The Electrification of the production process This expanded the ability to transform raw materials into finished products Ex. Ford Motors Maroof Hussain Sabri 8
9. HOWEVER?????? Wages did not raise even though the production did and prices of products failed to decrease. There was not an excess demand for labor Leaving unemployment rate steady Maroof Hussain Sabri 9
11. Political Promises Spark Market Speculation Herbert Hoover was the most promising candidate for president because of his ideas which promised increased economic growth in America. Maroof Hussain Sabri 11
12. Hoover’s Plan Proposed a Tariff bill which Senator Smoot presented called the Smoot-Hawley Tariff Promised increased tariffs on imports Planned to allow more productivity for US manufacturers Help ease unemployment Maroof Hussain Sabri 12
13. Investors marvel at This Proposal Investors believed profits from stocks would increase if the tariff bill was passed Sparked intense speculation Dow Jones Industrial Average increased by almost 35% because expected election of Hoover and his bill Maroof Hussain Sabri 13
15. The Crash of 1929 “American economic disaster that precipitated the Great Depression which was approximately a 10 year economic slump affecting all the western industrialized countries.” –Encyclopedia Britannica Maroof Hussain Sabri 15
16. General Causes of the Crash Rampant over speculation in market People holding companies and investment trusts (which by nature creates debt) Bursting of Bull Market economic bubble in August 1929 Large bank loans could not be liquidated Maroof Hussain Sabri 16
17. Direct Cause of Crash of Stock Market After Hoovers election certain people began to doubt if the tariff bill would help the US Economy Farmers, America’s trading partners, Democrats, and some Republican’s opposed the passage of new tariffs. On October 21, 1929 Senate announces plans to limit tariff revisions October 22, 1929 more limits set on tariff bill Maroof Hussain Sabri 17
18. Investors Realize Tariff Bill is DOOMED!!!!!!!!!!!!! PANIC! PANIC! PANIC! Maroof Hussain Sabri 18
19. Black Thursday On October 18, 1929 prices began to fall Panic stuck out on October 24 “BLACK THURSDAY” after the announcements from the Senate Record of 12,894,650 shares were traded Maroof Hussain Sabri 19
20. Black Thursday (Continued) Major banks and investment companies bought up great blocks of stocks to stop the panic but…. THERE ATTEMPTS FAILED!!!!!!!!! Maroof Hussain Sabri 20
21. Black Monday and Tuesday The Panic continued and 16,000,000 shares were traded Prices on the stock market collapsed completely!!!! Maroof Hussain Sabri 21
22. Hoover’s Plan to combat Crash Extracted promises from manufacturers to maintain production. Signed legislation providing generous additional funds to pubic works Smoot-Hawley Tariff 1930 (finally passed): to raise duties 50% Maroof Hussain Sabri 22
23. ALL THESE FAILED TO EASE CRISIS AND DEPRESSION FOLLOWED!!!! Maroof Hussain Sabri 23
24. Causes of Great Depression Agriculture had crashed in 1919 and was a continuing source of weakness. Banks over-extended Wages had not kept up with profits In 1920’s consumers were reaching limits of ability to borrow and spend Maroof Hussain Sabri 24
25. Cause’s of Depression (continued) Production was declining and unemployment increasing EVEN before the crash! Destroyed confidence in the economy Down sizing of industry causing unemployment Maroof Hussain Sabri 25
26. The Great Depression The stock prices in the next three years continued to fall By 1932 prices had dropped to only about 20% of there original value Maroof Hussain Sabri 26
27. Effects of Depression on Individual Thousands of individual investors ruined Loss of savings Poverty and panic Less spending and demand Unemployment Wages decrease Maroof Hussain Sabri 27
32. Effects of Depression on Economy Stock prices drop Industry declines Value of assets decline 11,000 of 25,000 banks fail Because of tariffs international trade market decreases Causes a world wide depression Maroof Hussain Sabri 29
33. World Wide Depression America’s intimate relationship with Europe causes serious economic troubles overseas and contributes to a world wide depression Maroof Hussain Sabri 30
34. Reasons America’s Depression Effects World World War I left Europe with large war debts America was a major financer and creditor of post war Europe. Once US slumped American investments to Europe dried up Germany hurt because of large war reparations Maroof Hussain Sabri 31
35. Reasons (continued) Nations attempt to protect domestic production with tariffs and having quotas on imports This only reduced international trade and damaged market even more Maroof Hussain Sabri 32
36. Hope Shattered In 1930 there is a slight rise in production and it seems depression might ease however: Spring 1931 the weakening of western European economy causes the major bank in Vienna to crash and Germany defaults on its war reparation payments Maroof Hussain Sabri 33
37. Hoover’s last Attempts Hoover proposes one year moratorium on war debt payments Too little too late Financial panic: European Government goes off their gold standard and devalues currencies, destroying exchange system (hurts trade) Europe withdraws gold from US banks Maroof Hussain Sabri 34
38. Gold Crisis With draw of European gold from US banks causes Banks to call their loans on US businesses Bankruptcies Bank customers go into ruin Eventually banks in ruin Maroof Hussain Sabri 35
39. Hoover’s last Attempts (continued) Reconstruction Finance Corp- to lend funds to banks, railroads, etc Glass-Steagall Act- Gold to meet w/ foreign withdraws THESE AND OTHER ACTS FAILED TO PROMOTE RECOVERY!!!! The American People lose fail in Hoover. Maroof Hussain Sabri 36
40. Franklin D. Roosevelt Wins Presidency Political and revolutionary thinker Elected 1932 Introduced major changes in structure of economy New Deal Maroof Hussain Sabri 37
41. FDR’s New Deal Opposite of Laissez-Faire Increased government regulation Massive public works projects for relief of poverty Aid for the unemployed and unfortunate Maroof Hussain Sabri 38
42. Some of FDR’s Programs Civilian Conservation Corp National Recovery Administration Federal Deposit Insurance Corporation Securities and Exchange Commission Maroof Hussain Sabri 39
43. More Programs 1935 Wagner Act (authority of Federal government in industrial relations) National Labor Relations Board Social Security, unemployment compensation, disability insurance Maroof Hussain Sabri 40
44. End to Depression Outbreak of World War II causes US factories flooded with orders form armaments and munitions Unemployment decreases and production increase Depression ends completely by the time the US enters the war in 1941 Maroof Hussain Sabri 41
45. What did we learn from the 1929 Crash? Market can be very unpredictable Investors must not get caught up in market bubble illusions Market forces alone may be unable to achieve recovery from economic slump Changes were needed in US economic structure Maroof Hussain Sabri 42
46. US Govt Actions to Ensure Economic Stability Taxation Industrial regulation Social programs (social security, pensions, welfare, others) Public programs Deficit spending Maroof Hussain Sabri 43
47. Food for Thought Currently our economy is prosperous because of new technology and advancements (especially in computers) Its Important not to over speculate or jump the gun when it comes to investments Important to know stock market crashes are still possible (Crash of 1987 and 1997) Maroof Hussain Sabri 44
48. Thank You for Your Attention Maroof Hussain Sabri 45