The Great Depression

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The Great Depression by Mind Map: The Great Depression

1. Stock Market Pre-Depression

1.1. Money is plentiful

1.2. Banks Quick To Make Loans

1.3. Investors only pay 10% of the stocks actual value at the time of purchase (Buying on Margin)

1.4. Stock Speculation (quick buying&selling)

1.4.1. Stock values increase

1.4.2. Inentional inflation False sense of security in the American Market

2. The New Deal - FDR

2.1. Program to fight Depression

2.2. Changed Gov't functioning

2.3. Steps To New Deal:

2.3.1. Step 1: Banking Holiday; Shut down for the day for gov't inspection

2.3.2. Step 2: Stock Market Reform

2.3.3. Step 3: Put More Money out for circulation

3. CRASH!!!

3.1. Oct. 1929 investors losing confidence; Market Collapses

3.2. Panic Selling- All tried to sell at once; bottom fell out of market

3.3. Lots of bankruptcies, banks called in loans