HIST 2112 Chapter Notes - Chapter 25: Indian Citizenship Act, Monroe Doctrine, Scottsboro, Alabama
Document Summary
Review questions: what caused the great depression, compare and contrast hoover"s and roosevelt"s approached to the great depression. Speculation: investors purchase into high-risk schemes that they hope would pay off quickly. Ponzi schemes : named for charles ponzi, emerged early in the 1920s to encourage novice investors to divert funds to unfounded ventures = simply used new investors" funds to pay off older investors. Some banks offered easy credit, allowing people to invest, even when they lacked the money to do so. On margin : buying for a small down payment w/ borrowed money, w/ the intention of quickly selling at a much higher price before the remaining payment came due (worked well as long as prices continued to rise) Black tuesday: october 29, stock holders traded over 16 million shares + lost over billion in wealth in a single day. Causes of the market crash: international economic woes, poor income distribution + psychology of public confidence.
