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Copy of The Great Depression

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PRESENTATION OUTLINE

The Great Depression

Cause and Effect
Photo by onohoku

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.

What is the Stock Market?

1920s- Bull Market

  • Times are good!
  • Stock Prices are rising.
  • Many people getting rich.

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™

SELL!! SELL!! SELL!!

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

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

Americans let their brokers predict for them.

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

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