Stock Market Crash

by Casey Litton and Alex Johnson

The Rise and Fall of the Stock Market

The stock market became inflated when stockholders started to borrow money from brokers to buy more stocks. Stock prices began to rise so the stockholders could pay the money back. People began to sell stocks. People didn’t have them money to pay brokers back.

Stock Market Decline

On October 24th traders sold about 13 million shares. This is why there is black friday. People weren’t looking at there personal finance and started buying more stocks than they could pay the brokers back for. This made them go into debt. Because of the debt, everyone sold their stocks which made the stock price drop.

Economic Depresion and Bank Failure

During the 1930’s an estimated 9,000 banks closed. Because of the banks closing everyone lost all of their money. People were left in extreme poverty.FDR established the FDIC which made sure that when a bank closed that people got some money back. The economy was unbalanced because they didn’t distribute the income. 10% of the population had 40% of the income. The crash left the whole nation in an international depression. People were fired from jobs, businesses shut down, and people were living on the streets. Nobody had the money to pay anybody or to run a business. People were selling things for cheap on the streets and were begging for jobs. Women made up 25% of the work force. Women were fired first because men were the superior gender then.