HIS 1110 Lecture Notes - Lecture 4: Social Darwinism, Fireside Chats, Reserve Currency
22 Jul 2016
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Document Summary
Herbert hoover elected under slogan: a chicken in every pot (when stock market crashes he tries to say everything is ok and it"s temporary people lost faith in him because it turned out to all be false) People think that the future calls for wealth and prosperity because of tremendous progress by us stock market (centre goes from london to nyc) Nyc = centre of world"s economy (will affect rest of world) Stocks became completely inaccurate; value of stocks artificially inflated and value of company appears to be more. Many people begin to buy stocks, with borrowed money (on margin) stocks appear to rise and rise and more people buy stocks; (small amount of money can turn into huge profit by credit) More people buy stocks on margin and this leads to disconnect between stock value and company value. Value of ny stock exchange will quadruple (unsustainable)
