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Lessons from the 1930s: The Great Depression Unveiled

Explore the factors leading to the 1929 stock market crash, the impact on the economy, and the ripple effects on banks and businesses. Analyze potential preventive measures and the lingering questions of averting the subsequent depression.

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Lessons from the 1930s: The Great Depression Unveiled

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  1. Unit #8The Great Depression of 1930s LESSON #8:1 The Crash of the Economy p. 232-236

  2. What do the graphs tell you?

  3. The long “Bull Market” (reference p. 232-233) • What was the 1920s like, that kept people gambling their money in the stock exchange? • What is a Bull Market? • What was buying on margin? • Why did people just start selling their stocks in 1929? • What happens at the “margin call?

  4. The Crash of the Market • What does it mean that prices “peaked”? • On Monday, Oct. 21, 1921 prices started _____________ • Once prices started falling, speculators knew they earned as much as they could on “inflated” stocks. • What does “inflated” value mean? • What happened on “Black Tuesday”? • How much was lost?

  5. The Collapse of the Economy • The stock market crash only effected _________, not most Americans • The way the banks were effected THEN hurt the average American • What had banks done during the “long bull market” of the 1920s? • When the banks were unable to collect on some of their investors, they stopped lending $$ to businesses. • What were businesses then unable to do? • If a bank could not survive the losses and had to close, what happened to your savings in that bank? • What is a “bank run”? • This started the collapse of the whole economy

  6. Your analysis: • Could anything have been done to prevent the crash of the stock market in October 1929? • Could the depression have been prevented if the stock market never crashed?

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