Day_21.5_Causes_of_the_Great_Depression_NOTES - Causes of the Great Depression 1928 election Democrat Alfred Smith-1st Catholic to run for President-KKK

Day_21.5_Causes_of_the_Great_Depression_NOTES - Causes of...

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Causes of the Great Depression 1928 election: Democrat Alfred Smith: -1 st Catholic to run for President -KKK campaigned hard against him because they did not want the Pope to tell him how to run the country Republican Herbert Hoover: -head of the Food Administration during WWI. -He was for prohibition, he was a Quaker. 1920’s/Bull Market: All through the 1920’s, there was a bull market. Had a period of prosperity: -laissez faire treatment of Big Business -isolationism -people buying on credit (influence of the automobile) -The opposite was the bear market. Buying on Margin: small cash down payment with the stock broker paying the rest along with a commission and getting interest. -more people getting involved in the stock market - Federal Reserve was not raising interest rates which would cause people to save more and spend less. Margin call: broker demands that the investor repay the loan at once. -Made the investor very scared whenever the market took a dip.

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