HIST 212 Lecture Notes - Lecture 7: Munich Agreement, Lux, Scratch Building
Document Summary
Many people were overextended in the stock market. Normal people, banks, brokers all saw the stock market constantly going up, To much surplus made for only a few who can afford more expensive items like got in over their means vacuum cleaners. Filled the top of the market and couldn"t move down. Buying things on credit, installment plans when they actually couldn"t afford things. The new global economy meant that a dip anywhere would hurt the whole world. Dust bowl begins after the depression does but the drought exasperates it. Government told farmers to plant less to increase demand even before that. Europe was already weak because they were repaying after the war. Banks became overdrawn after everyone took their money at once. 1300 banks failed in the first 2 years of the depression. Hoover was poor at the optics and ended up getting blamed by the people for many problems. Had programs but got little credit for it.
