point because stock prices were way too high when compared with their earnings and dividends. Another reason was the actions of the Federal Reserve cannot be labeled as a cause of the crash of the stock market (Whaples). Wanting to curb speculation late in the 19020s, the Federal raised interest rates and decreased their money supply to the system. The tight policies made it far more difficult for people to borrow money to buy stocks. This is thought to have led to a decrease in the demand for stocks, thus resulting in falling stock prices. After the crash, the Federal Reserve d id almost nothing to help the banking system causing the bank crisis and continued falling stocks.
Cartoon This cartoon portrays three people on a bench . On the left is a donkey which is representative of the democratic party. The middle is woman sitting daintily with her hands clasped in her lap. On the right is the elephant, a representation of the Republican party. Both the Democrat and the Republican have their hands in their lap, an anxious look in their face, and seem impatient What’s more interested in this picture, is how calm and happy the woman is.
You've reached the end of your free preview.
Want to read both pages?