Stock Markets Exposed

What was one reason for the stock market crash?

a. the economy was fueled too much by the spending of the wealthy-the poor were unable to purchase all the necessities. b. the economy was fueled by the poorest 10%, most of whom had some disposable income-when they lost jobs, the economy suffered. c. difficult to figure out, economists still haven't figured out why the market crashed. d. the middle class had not put enough money in the market ot keep it growing.

Public Comments

1. e
2. Nope. There had come out a thing that reserved you money, in your bank account, to be spent when a stock hit a certain low price, and sell when it hit a high price. One hit to the market left people penniless, the companies had closed their door by the time the money from shares bought came in. The money left the general economy.
3. C
4. The crash on Black Tuesday in 1929 ended the unbelivable prosperity of the 1920's. They did not have controls that stopped trading if things begin to tumble like we have today. Investors bought borrowed money from their brokers who went to the banks for that money. If their stock failed the money was permanently lost. The 20's was a time of great invention and limitless prosperity. The Model T got cheap and everyone could afford a car. Wages went up. Consumers bought newly released radios and consumer goods. Then when folks had all of these things, they stopped buying. The market cooled. Millionares became penniless over night. The market was fairly new to this type of volume and caved in on itself, government policy being "hands off". Now we know better. The market is run smarter.
5. i would say A
6. I would say A.
7. Economist know well what happened. The problem was not "Real" economy, but was "Stock exchange "economy , that influenced real economy with the crash. !929 was the crash of a huge speculative bubble, one of the biggest of history , and , at least , one of the most remembered. When stock exchange grows too much only in prospective and forecasting of a "Eternal Growing" , not on the basis of a equal real economy, it is doomed to crash. Lets remember that in 1927 there was a Real Estate crash who hit above all Florida speculative investment. And that happened in 1929, after a huge post -war stock exchange increase. BTW this happened also in 2000, in 1985, and has happened even in XVII century. with "Tulip crash" in Netherlands... When people things of earning easily from speculation and stock trading, and invest more and more money to gain, and makes debt for increase gaining, all is ready for the crash. Base of crash, at the end , is people greed and laziness.... I give you a suggestion : in 5 years Shanghai stock exchange index grew 250%, while economy only 50%.... waht will happen ? ;)
8. those are all lame and relatively unrelated choices A huge part of the cause of the Great depression was the improper use of credit. People were buing and selling huge amounts of products and services without any real money. People were using IOUs on everything and over time all the real money turned in to IOUs.