HIS 106 Lecture Notes - Lecture 15: Hooverville, Stock Market, Consumerism
Document Summary
1920"s were economically sounds and lavish soon we will no longer have poverty prez hoover. Over night the economy came to a crash, basically. Causes of great depression: role of credit (installment) People were buying stuff with money that they did not have. Buy on credit then lose your job: playing in stock market. Upper-class, upper-middle class would play the stock market. Stock market rose and rose and rose throughout the 1920"s. The quick way to success was thought to be to invest in the stock market: margin buying. Borrow money to play in the stock market. Borrow money to make a quick return: stock market crashes. People just started selling stocks and cashing out. The more people sold the further the price went down. People were in debt bc of margin buying: banking crisis. People could not pay back their loans. The ripple of the depression starts panning out: business failures.
