Buying on Margin; gave people the ability to take out loans from banks and only had to pay 10% interest
Stock Speculation; Buying an item and then turning right around to sell it to make a quick buck // this gave the public a false sense of security.
Panic Selling; Beginning of October the market crashes causing the panic selling - which was everyone selling @ once.
Ripple Effect; very little people traded on the side, but soon they to were taken by the dying economy.
Uneven Dist. of Wealth ; everything was distributed unfairly 0.1% were making more than 42% were in poverty and the other 58% were pushed up or down into middle class.
The overproductivity was the 2nd problem causing the great depression.
President Hoover believed government should play active role.
Persuaded bankers to follow his plan and provide job for the unemployed.
Hoover wanted to put a stop to war debt.
But, things like Tariff Wars failed through and everyone had to come to acknowledge the world had become a global economy. However, foreign goods were not purchased the U.S decreased.
Bankers Panic; Soviet Union flooded the market w/ cheat wheat (1/2 the US price) to get money to back Australian banks.
Banks of International Settlement; Austria borrowed from Germany
No one likes Hoover
Reconstruction Finance Corporation; Hoov established it.
Rugged Individuals; Hoov invited it to make Americans fell better
Bonus March // Bonus Army; Boycotting
Hoovervilles; marched and set up shantytowns; food scraps; hitchhiking journey. After year dispersed by army.
Winner by a landslide; FDR