Wall Street Crash Flashcards
Link
-America had gone “Wall Street Crazy” and…
America had gone ‘Wall Street Crazy’ and went on a spending spree in the ‘Roaring Twenties’.
Knowledge (1)
-By 1929 ordinary people, banks and big businesses were…
By 1929 ordinary people, banks and big businesses were buying shares ‘on the margin’, which meant they paid only a fraction of the full price, intending to sell the shares at a profit before the rest of the payment became due.
Knowledge (2)
- On the 24th October 1929, (black Friday), brokers were…
- The past few weeks had seen…
On the 24th October 1929, (black Friday), brokers were nervous. The past few weeks had seen violent changes in prices, and by 11am, panic had seized the market.
Knowledge (3)
- Investors panicked and instructed their brokers to…
- Scenes at the stock exchange were….
Investors panicked and instructed their brokers to sell, at any price, and sometimes for virtually nothing. Scenes at the Stock Exchange were becoming so wild that the police had to be called.
Knowledge (4)
- However, over the next few days…
- Until the 28th October…
However, over the next few days things started to calm down, until the 28th October when shares began to fall again and this time bankers didn’t come to the rescue.
Knowledge (5)
- The 29th October (black Tuesday) it was clear…
- $14000 million in…
The 29th October (“Black Tuesday”) it was clear the worst was still to come. $14,000 million in paper profits were wiped out in a single day.
Analysis (1)
-This was important because the Wall Street Crash caused…
This was important because the Wall Street Crash caused a mass loss of confidence.
Analysis (2)
-The moment Americans realised all was not well…
The moment Americans realised all was not well, many people lost a lot of money which set in motion the chain of events that led to banks collapsing and factories switching off.
Analysis + (1)
-However, many historians debate whether…
However, many historians debate whether the Wall Street Crash actually caused the Great Depression or if it coincided with the boom of the 1920s coming to an end.
Evaluation (1)
- In evaluation, this was an important…
- US’ economy had become so reliant on people…
In evaluation, this was an important factor for the cause of the great depression. US’ economy had become so reliant on people buying goods that, because people had no money to invest or buy, it struggled to find a way out of the crisis
Evaluation (2)
- However, this was not as important…
- If the banks were regulated and hadn’t…
However, this was not as important as the weakness of the US banking system, if the banks were regulated and hadn’t invested in shares they would’ve been able to help brokers.
Evaluation (3)
-When the banks started to fail…
When the banks started to fail, it caused a massive chain of unemployment.
Evaluation (4) & Historiography
- It has been argues…
- Peter Clements who thinks Hoover “lost touch with reality” and it he had…
It has been argued by historians like Peter Clements who thinks Hoover “lost touch with reality” and that if he had instored regulation in the banks this wouldn’t have happened.
Evaluation (5) & My Opinion
-I believe that the Wall Street Crash was the…
I believe that the Wall Street Crash was the tipping point of the start of the great depression, it was not a cause simply a nudge to push everyone over the edge.
