More Money, More Problems

1. ______________________________: buying on credit • Buyers could take home a new fridge by putting a ________________________________ on it • Each month they paid an installment until they had paid the full price PLUS INTEREST • “___________________________________” increased the demand for goods _________________: monetary dues owed over time as a result of credit Remember Bull vs. Bear? • Soaring Stock Market: • - Boom of the 20s gave the stock market a giant boost • - Corporations sold __________: shares of ownership sold to investors • * Investors made or lost $$ depending on whether the price of shares went ____or _____ More Money, More Problems • Bull Market: • By late 20s, more people were investing in the stock market than ever • Stock prices rose so fast some people made fortunes overnight (this encouraged more to buy) • Bull market: ______________________________________________________________________________________ • Many people bought stocks on a margin system: • An investor would buy stock for as little as 10% down payment • The buyer held the stock until the ____________& then sold it at profit • Margin buying worked as long as _______________ kept going ____ • Problems Rising: • - In 1928 & 1929 – prices of many ______________rose faster than the value of the _____________themselves • * Experts warned that the bull market couldn’t last forever • * Most ____________ ignored the warnings • Limited Role in World Affairs: • - After WW1, U.S. was world’s leader in ________________ power • - Europeans expected U.S. to take a major role in world affairs • Harding & Coolidge wanted to continue peace in Europe, • however they didn’t want the job of ______________world peace • - Many Americans supported this return to prewar _______________ • Latin America: • - During WW1 LA nations had been cut off from __________ • Result: U.S. trade/ investment in LA increased • Trade continued after war • U.S. limited its role abroad for fear that more involvement may ___________________________________________________

2. Soviet Union: • - Lenin is now the big cheese in ______________ since the revolution • Lenin created the world’s first communist state • ________________: economic system in which all wealth & property are owned by the community as a whole • U.S. refused to recognize Lenin’s government & disliked the idea of communism • Pursuing Peace: • - Post WW1 many people favored ____________________: a reduction in the armed forces & weapons of war • - Harding & __________________________also supported peace efforts