The Crash of 1929

The Crash of 1929

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  • 1918
  • We can make a fortune on the Stock Market! If we invest our life savings, nothing bad could posibbly happen!
  • 1925
  • We're even richer than before! The more we invest in the Stock Market, the more we make! We should tell all our friends to invest!
  • 1928
  • It's like all our dreams are coming true! The American Economy just gets better and better! I'm fabulously wealthy!
  • After World War One, Americans, full of confidence in the future, invested their savings in the stock market or deposited their money in banks that did so.
  • 1929
  • Don't worry sir! I know the Stock Market is failing, but I'll lend you money anyway!
  • Whew! That was close!
  • The steady Stock Market slowly grew and grew, and by 1925 it was doing better than ever.
  • 1929
  • We're out of money!
  • Oh no! We're poor again!
  • Starting in 1927, the stock market saw a huge upwards swing, leading to a boon in 1928. At this point, everyday Americans thought they could become rich through it.
  • 2016
  • Thank goodness we understand economic downturn better now!
  • We even have government bailouts to save the economy in close calls!
  • In March of 1929, the stock market suffered a mini-crash, which was prevented from becoming a full blown crash when bankers assured debtors that they would keep lending.
  • In October, there was another crash. Bankers again tried the tactic of reassurance, but when this failed to work, it caused the banks to fail, who could not repay the money they had invested and then lent.
  • To say the crash of 1929 devastated the economy would be an understatment. Luckily, we learned from our mistakes and can now predict and prevent similar economic disasters from occurring again.
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