Had power to make emergency loans to banks.
It was too little too late
October 29, 1929- NYC Stock Market Crashed.
Investor's confidence dropped, which lead to market crash., Panic Selling, Buying and Selling increased stock, but cos. needed long term investments to afford bills., bought and sold to inflate shares on purpose., false sense of security.
Stock Speculation- People buy and sell stocks quickly to make money
1920's money was plentiful so banks didn't hesitate to make loans.
Buying on margin
government got involved.
fixed the bank crisis.
reformed the stock market.
put more money into circulation. caused inflation.