America Goes Bust

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America Goes Bust
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The Bubble

• DOW doubles 1928-1929
• Investment on Margin (10)
• Faith in Market
• RCA increased by 400
• Excitement of getting rich more investment

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October Crash

• 1929- Faith in profits falls
• Banks call in debts
• Stocks are sold
• Several black days
• Thursday- October 24, 1929 Falls dramatically
• 11 investors commit suicide
• People Frantic
• Whitney (Floor broker for J.P. Morgan) begins
  buying
• Causes a short upswing prior to market closing

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More black days

• Monday the 28th- 2nd worst day in history
• Stocks fell and continued to fall unstoppable
• Tuesday the 29th
• Black Tuesday was the proverbial straw
• 16 million shares traded
• Banks sold instead of trying to level the market
• By 1932- DOW down just shy of 90

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Mistakes Made Things Worse

• The rich got richer and the poor population grew
• Coolidge cut taxes on wealthy
• Inflation hit the poor the hardest
• Hoovers Response
• Federal Reserve Board increased interest
• Tight money policy
• US and abroad could not get loans
• Investments abroad failed due to this
• Tariff of 1930- Hawley-Smoot Tariff Act
• Farmers pushed for this to protect their interest
• Retaliation

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Hoover Fails to Bring Change

• Reconstruction Finance Corporation- Provided
  funds to states to help assist public works
  projects.
• Emergency Relief and Construction Act- Provided
  funding for public projects to increase
  employment
• Hoover Moratorium- Forgive European Loans for a
  Year
• Federal Home Loan Bank Act Help people get loans
  to buy house
• Agricultural Marketing Act- Increase susidies to
  help farmers

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Hoover Overall

• Presidency had a tone of Laissez-Faire politics
• The measure he took were too little- to late
  according to mos

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The Bonus Army

• 1924 Congress authorized 1000 for all WWI
  veterans.
• Mature in 1945
• Demand of early payment
• Portland Oregon Veterans to stage mach on
  Washington Bonus Expeditionary Force
• Headed East and Accrued Support
• 20,000 Set up camp in Anacostia Flats (Just
  southeast of capitol)
• Ask for money (HOR aproves- Senate declines)
• MacArthur and Patton attack, burn camp and
  disperse protestors