The Great Depression
by Brooke Nichols
1. Economic Cycle
1.1. People couldn't buy, productivity was cut back
1.2. Purchasing power declined again
2. Hoover
2.1. Reconstruction finance corporation
2.1.1. Had power to make emergency loans to banks.
2.1.2. It was too little too late
2.2. Disliked by the public
2.3. Was a president
2.4. Hoover didn't want the government to interfere with the economy.
2.5. Franklin D Roosevelt destroyed hoover in the election.
3. F.D.R
3.1. Created the new plan
3.1.1. government got involved.
3.1.2. fixed the bank crisis.
3.1.3. reformed the stock market.
3.1.4. put more money into circulation. caused inflation.
4. New node
5. Role of Stock Market
5.1. Crash
5.1.1. October 29, 1929- NYC Stock Market Crashed.
5.1.2. Investor's confidence dropped, which lead to market crash.
5.1.2.1. Panic Selling
5.1.2.1.1. Buying and Selling increased stock
5.1.2.1.2. but cos. needed long term investments to afford bills.
5.1.2.1.3. bought and sold to inflate shares on purpose.
5.1.2.1.4. false sense of security.
5.1.3. Stock Speculation- People buy and sell stocks quickly to make money
5.1.4. 1920's money was plentiful so banks didn't hesitate to make loans.
5.1.5. Buying on margin