HIST 2600 Lecture Notes - Lecture 19: Settlement Movement, Frances Perkins, Civil Works Administration
Document Summary
October 24 1929,or black thursday, the prosperity came to a hault . In black threads, the stock market began to collapse. Investors freaked, and by the next day, the frantic trading caused it to crash october 29th 1929. This revealed issues with the economic system that had been covered up. This included a false buoyancy by easy credit. In 1925,the market value of all stocks was 27 bullion. Then there was a frenzy if buying shares, and by fall 2929, it had reached. Very often people got involved by borrowing money and over extending credit. As stocks went up, the thought it would be easy to pay back loans. People were loaning 75 percent of stock prices. Jen the prices crashed, paying back those loans became impossible. People used credit to also buy houses, cars, appliances, all on credit. The credit issues was exasperated by other flaws. There was an income disparity, huge between the wealthy and poor.
