Great Depression 1 Flashcards
What year in the U/S ended on a bad note?
1920’s
Why did people lose nearly everything during the Great depression?
They borrowed on credit.
In 1920, what percent of Americans had no credit?
80%
Was credit hard to obtain in 1920?
No, it was easy.
What did people use their borrowed money for?
New cars and houses.
What year was the housing boom?
1925
When did the housing boom reoccur?
2008
What is the stock market?
Where people buy stocks, or shares, in companies and own a small portion of the company.
If the company sells a large number of
goods what happens?
The person who invested in it earns a huge profit.
If the company isn’t selling any goods what happens?
You end up losing values/shares since you are part of the company.
The shares of major companies that
are doing well are more or less expensive?
More expensive.
What did people think when there was a steep rise in the stock market?
The market would never drop so few saved money for an emergency.
What was happening by the end of the 1920s (the debt bubble bursts).
The credit limit was beginning to be reached
by American consumers and most Americans could no longer buy items on credit.
What happened during the business bubble burst?
The companies were not selling their goods, and people were getting laid off and massively in debt.
Companies are losing money, and people are broke.
