Not first hand subject to interpretation stock market

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Not first hand, subject to interpretation Stock Market Crash, 1929 Round 1 – March (Charles Mitchell saved, loaned money to people and bought stock himself) Round 2 – October (Cannot be saved) No One Knew What to Do “Fear and Greed” drive the Stock Market Still true today Run on the Banks, 1930 (A bank run (also known as a run on the bank) occurs in a fractional reserve banking system when a large number of customers withdraw their deposits from a financial institution at the same time and either demand cash or transfer those funds into government bonds or precious metals or a safer institution because they believe that the financial institution is, or might become, insolvent .) Economy Built on Credit Very Little Savings No government control Bank of the United States Withdrawal Request Rumors Spread Met Initial Requests, but Unable to Continue Spread to Other Banks Note: There was no FDIC (Federal Deposit Insurance Corporation: The U.S. corporation insuring deposits in the U.S. against bank failure). Impacts Very Many Banks Closed Companies Went out of Business Unemployment Soared (from 3.2% in early 1929 to 24.9% in the peak in 1933). Homes Repossessed Economy Collapsed Franklin Roosevelt Elected, 1932 New Deal “All we have to fear is fear itself.”
“Fireside Chats” (were a series of thirty evening radio speeches given by United States President Franklin D. Roosevelt). First 100 Days- busy - Alphabet soup Elected four times New Deal Drews History 2112 2/6/2013 Life in the Depression Joblessness, hunger, and poverty Unemployment 1929 3.2 % 1.5 million workers 1933 25 % 13 million workers Hoovervilles (tent cities) Rising crime Fewer marriages Lower birth rates Refuge at the theater Franklin D. Roosevelt The Making of a Politician Background in politics Polio Governor of New York Roosevelt’s appeal The Election of 1932 Democratic Party divisions A New Deal for the American people The New Deal Coalition New Deal “All we have to fear is fear itself.” “Fireside Chats” First 100 Days - BUSY Goals Protecting the Economy Providing a “safety net” Jobs Publically Funded / Privately Built Projects Labor / Business Relations There was not enough consumption More jobs would mean more money to spend Government projects (deficit funding) Create confidence for private sector spending Major cuts in production had been made by industry
Launching the New Deal ACRONY M WHAT IT STANDS FOR AAA Agricultural Adjustment Administration CCC Civilian Conservation Corps CWA Civil Works Administration FERA Federal Emergency Relief Administration FHA Federal Housing Administration FSA Farm Security Administration HOLC Home Owners Loan Corporation NRA National Recovery Administration NYA National Youth Administration PWA Public Works Administration REA Rural Electrification Administration SSA Social Security Administration TVA Tennessee Valley Authority WPA

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