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Copy of The Great Depression

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1.

The Great Depression

Cause and Effect
Photo by onohoku
2.

Learning Targets

  • Analyze the economic causes of the Great Depression.
  • Analyze impact of the Great Depression on individuals.
  • Analyze impact of the Great Depression on communities.
  • Analyze impact of the Great Depression on institutions.
3.

What is the Stock Market?

4.

1920s- Bull Market

  • Times are good!
  • Stock Prices are rising.
  • Many people getting rich.
Photo by James & Vilija
5.

Overconfidence- "On Margin"

  • Buying on Margin
  • $1000 buys $10,000
  •  $9000 loan from broker
  • Pay back loan after stock goes up
  • What if stocks go down???
Photo by aresauburn™
6.

SELL!! SELL!! SELL!!

  • If stocks go down...
  • Sell stock quickly, or...
  • Margin Call- Gimme my money!!
  • Bankrupted many Americans
Photo by fusky
7.

What is stock worth?

  • At first, Stocks=True Value of Company
  • Then came "Speculation"...
  • Predicting price of stock
  • If you predict wrong, you lose money
  • Many Americans lost money this way.
Photo by Leo Reynolds
8.

Americans let their brokers predict for them.

When the brokers made mistakes up...it turned ugly!
9.

Untitled Slide

Brady Baxter