HISTORY 1DD3 Lecture Notes - Lecture 9: Hirohito, Munich Agreement, Baltic States
22 Oct 2017
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Document Summary
Coming of the great depression: causes of stock market crash, speculative fever. Everyone wanted to be in market: no grasp of reality, no fear of downside, creates artificially high prices, margin loan, money loaded to speculators to buy stock. As high as 90: allows for huge profits, but could be called back any time, works a long as market continues to rise. Along with speculative fever, people were overextended financially: unequal distribution of wealth. In past only wealthy were hurt by crash: the market was depended on inflow of cash from the upper class, holding companies. Act act a magnifying agent: crash spreads to other companies, crash hits holding companies early and quickly, lack of available credit. Tremendous inventory met the small demand for goods so shops closed down: farm depression. Farmers had no money to spend: credit, wealthy and middle class cannot buy so little demand for goods, holding companies.
