The wall street crash and depression Flashcards
what was seen as a threat to the boom in 1926?
the collapse of land prices in Florida
what was the main problem during the boom?
overproduction
what was the problem with having too many small banks?
didn’t have enough funds to cope with people taking money out in panic during autumn 1929
why was too much speculation on the stock markets a problem?
the middle class had a lot to didn’t so they became paranoid and lost confidence
when was the wall street crash?
October 1929
how did the US depression affect the rest of the world/
the US recalled the loans they had given European countries after ww1 which caused their banks to collapse and cause a worldwide financial crisis
how many people were unemployed because of the depression?
13 million
what did industrial production fall by between 1929 and 1932?
45%
what did house building fall by between 1929 and 1932?
80%
how many banks went out of business between 1929 and 1932?
5,000
how many people were known to have starved to death during the depression?
110 (although will have been a lot more that went unrecorded)
how many shares were traded on “Black Tuesday”?
16 million
how much money did the stock market lose on the worst day and worst week?
13 billion dollars and 30 billion dollars
how long did it take for Tuesday to fully recover from the depression?
10 and a half years
what was the problem with the banking system?
- 12 reserve banks headed by the federal reserve board
meant no government intervention
what was the problem with local banks
- not part of the centralized system headed by government
- 30,000 banks too small and unable to cope
what was the stock market value in 1925 and 1929?
27 billion dollars and 87 billion dollars
20 million shareholders
what was the problem with credit and hire purchase during the depression?
- everyone was in debt becuase they owed money on goods bought during the boom
how many purchase price shares were borrowed by 1929?
75%
what was market structure maintained by during the 20’s?
confidence in the market
what were reasons for loss of the in the stock market?
- FRB rumored to be tightening credit facilities (borrowing harder)
- men like Bernard Baruch who made their fortune on the stocks were selling their shares
