a system for buying and selling stocks in corporations
Stock market
A long period of rising stock prices
Bull market
Buying a stock by paying only a fraction of the stock price and borrowing the rest
margin
Demand by a broker that investors pay back loans made for stocks purchased
margin call
act of buying stocks at a low price then selling at a higher price
Speculation
Buying an item at a small amount then paying the rest monthly
installment
4 time Governor; 1st catholic president to be nominated for president
Alfred E. Smith
Where stocks dropped extremely on October 29
Black Tuesday
June 1930 Act which raised tariffs to their highest levels; was supposed to protect US business but it back fired
Hawley-Smoot Tariff
Court official
bailiffs
A community formed on used or public lands by newly homeless people
Shantytown
Nickname given to the shantytowns
Hoovervilles
A unemployed individual who wanders around
Hobo
Name given to the area of the Southern Great Plains severely damaged by droughts and dust storms during the 1930's
Dust Bowl
A serial drama on tv or radio, usually listened to by women to pass time
Soap opera
Producer of the first feature length animated film
Walt Disney
Novelist who wrote about poverty and misfortune; wrote "Grapes of Wrath
John Steinback
Southern author about racism; good at showing what his characters are thinking
William Faulkner
Government - financed building projects
public works
Money that went directly to the people in poverty
Relief
To take possession of a property
Foreclose
Provided financial support to state and local governments and made loans to banks, railroads, mortgage associations and other businesses.
Reconstruction Finance Corporation
WWI veterans that were promised a bonus; gathered in Washington, DC to demand cash payment redemption of their service; marchers
Bonus Army
Why did the banks close after the crash?
People were not repaying their loans so banks could not return depositor's money.
Where was the Dust Bowl located?
Great Plains
What were causes of the Dust Bowl?
There wasnt enough rain, there were no trees to hold it together, and land was being plowed through to break through top soil.
What were results of the Dust Bowl, and what did people have to do?
People (Okies and Arkies) had to move out West. Many mainly moved to California in search of jobs
What is escapism?
Where the mind allows you to escape harsh conditions by taking you to a place that is purely beautiful
What were Hoovers ideas to solve depression?
Indirect relief which consisted of giving loans to big businesses in hopes that they would create new jobs for individuals
What did the Reconstruction Finance Corporation do?
It loaned banks and businesses money to help the economy (indirect relief)
How did farmers continue to suffer during the depression?
They went bankrupt and often lost their farms
Give an example of direct and indirect relief.
Direct - providing food to starving families
Indirect - loaning money to a big business in hopes that they will create more jobs
What was the overall picture of the stock market in 1920 up until the crash?
Stocks kept going up and it was being overall inflated. It wasnt worth of what it was being sold for.
What were reasons for Hoovers victory over Smith
Hoover was a republican and Smith was a democrat. Smith was also a catholic and many believed that if a catholic was president, the pope would indirectly rule the country.
What were effects of the Bonus Army march?
Lives were lost and it ensured that Hoover would not be re-elected as president
A tent city set up by the homeless in public areas
Hooverville
Somebody that pulled their pockets inside out
Hooverflags
A newspaper to cover the homeless as they slept
Hooverblanket
At the beginning of the depression, who or what provided relief for the poor?
Charities ex. Salvation Army, churches, and gangsters
SA: What are pros and cons of indirect and direct relief?
Indirect relief
Pros: helped avoid people taking advantage of the government and not working
Cons: many people suffered with no help of the government and often stayed in poverty
Direct relief
Pros: helped people out of poverty and gave instant results
Co
SA: How did the crash effect different people?
It was a vicious cycle that effected anyone involved
What was the worst year of the depression?
1932
What percent of Americans were unemployed and underemployed?
25%
By October 1929, a bear market began and stock pricing began to _____
Decrease
When banks ran out of money because of withdraws
Bank runs
Meant that the middle class was small and the wealthy owned most wealth
Uneven distribution of wealth
Buying on credit with installment plans caused debts to _____
Rise
Broken down car that could be pulled by horses
Hoover wagon