HISTORY 100AC Lecture 21: lec21_democratizing_stock_ownership
Document Summary
Announcements: essay due, from last time, open immigration policy for the jewish immigrants mentioned last time, bracero program, prof: changed who became successful . Scholars and politicians had aspired to predict market changes for a long time. Prediction of cycles might lead to taming capitalism. Gathers economic data on stock markets ++ industry. Milton freedman: one of the greatest economists. Forecasts based on theories of causation, not observation. Fisher fails to predict crash in 1929, babson predicted it. Stuck with his theories, fisher lost almost everything. Fisher: stock prices have reached what looks like a permanently high peak. Bank and business failures (1929-1932, over 100,000 businesses failed; in 1932 alone. Prof: the problem arose due to the market being flooded with payments or purchases based upon credit . Common stock -- # of shares may influence company"s executive business decisions (board of directors)
