HISTORY 1DD3 Lecture Notes - Lecture 12: Stock Market, Money Supply, World War I
22 Oct 2017
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Strong anti-u. s. sentiment in japan: by 1929 only 150,000 immigrants admitted. The new ku klux klan (kkk: anti-foreigner. Murder scandal (dc stephenson raped and murdered secretary) exposes. Causes of crash itself: speculative fever. All investors wanted to be in market. The demand for stocks creates arti cially high prices. Money loaned to speculators to buy stock. Works as long as the market continues to rise. Along with speculative fever, people were overextended nancially. Created false prosperity: unequal distribution of wealth. In the past only the wealthy were hurt in a crash. Stock market was completely dependent on the in ow of cash from the upper class. Capital dries up bc wealthy pull $ out: holding companies. Companies that own, or hold, other companies. Act as magnifying agent during the crash. Crash devastates holding companies early and quickly. 12 comprehensive exam: 5/11/17: lack of available credit. For crash to subside someone needs to buy stock.
