07 lecture amh2020 depression

07 lecture amh2020 depression - Chapter 25: The Great...

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Chapter 25: The Great Depression 19/07/2007 08:47:00 The Great Depression, 1929-1941 What was the great depression? - A severe economic and cultural crisis that threw America into a tailspin for 12  years - began October 29, 1929--- Black Tuesday NYSE lost $17 Billion in one day -overall results of the great depression were:  Loss of $74 billion in wealth  25% unemployment rate  Bread lines and soup kitchens  Shanty towns—“Hoovervilles”  Countless businesses failed  Americans became fearful of future How did Black Tuesday Occur?
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- stock market had been very aggressive - 1928-1929, some stocks doubled in value - Investors were buying on margins—paying 10 % of value of purchase and  borrowing 90% from bank or creditor - investors became greedy, became risky investors - October 1929, creditors grew concerned and started asking for immediate loan - s investors sold stock to repay loans, prices began to fall, creating a downward  spiral - Black Tuesday saw drop of $17 billion How did Hoover seek economic recovery? 
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07 lecture amh2020 depression - Chapter 25: The Great...

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