Great Depression
The Great Depression
In America the 1920's were a decade of prosperity some every claimed that we had entered into the age of permanent prosperity. Much of the world was still struggling to get over the affects of World
War I but the United States was thriving. The U.S. sentiment can be depicted from the lyrics of the song “…Blue skies, nothing but blue skies from now on…” that was composed in 1926 by Irving Berlin. However this sentiment would not last and American was soon to find that there is no such thing as permanent prosperity. Change was coming both in economics and climate and in turn policy; these changes were to bring the roaring twenties to a dead stop. October 29, 1929 became known as Black Tuesday; the day the stock market crashed which marked the beginning of the Great Depression.
The average American had been introduced to consumer credit throughout the twenties. With this new line of credit everyone was interested in the “buy now and pay later” scheme and there were so many new innovative inventions available such as radios, refrigerators, washing machines and air conditioners that every American thought they were entitled to. This was the dawn of the consumer revolution. The stock market had also become the ideal easy money maker for the everyday man but in many cases the big winners in the market were the ones with the most skin in the game.
The wealthiest had the ability to manipulate a stock to by pooling to inflate the price to make it appealing to the everyday investor and as the everyday investor was buying into the company the price manipulators were selling off their shares and enjoying the climb along the way. The manipulation was often done through increased share activity as well as false positive publicity. By the time the stock hit its peak the original pool manipulators had sold off their shares and all of the everyday shareholders that had been duped into their shares got to ride the stock back to its real market price. What
In America the 1920's were a decade of prosperity some every claimed that we had entered into the age of permanent prosperity. Much of the world was still struggling to get over the affects of World
War I but the United States was thriving. The U.S. sentiment can be depicted from the lyrics of the song “…Blue skies, nothing but blue skies from now on…” that was composed in 1926 by Irving Berlin. However this sentiment would not last and American was soon to find that there is no such thing as permanent prosperity. Change was coming both in economics and climate and in turn policy; these changes were to bring the roaring twenties to a dead stop. October 29, 1929 became known as Black Tuesday; the day the stock market crashed which marked the beginning of the Great Depression.
The average American had been introduced to consumer credit throughout the twenties. With this new line of credit everyone was interested in the “buy now and pay later” scheme and there were so many new innovative inventions available such as radios, refrigerators, washing machines and air conditioners that every American thought they were entitled to. This was the dawn of the consumer revolution. The stock market had also become the ideal easy money maker for the everyday man but in many cases the big winners in the market were the ones with the most skin in the game.
The wealthiest had the ability to manipulate a stock to by pooling to inflate the price to make it appealing to the everyday investor and as the everyday investor was buying into the company the price manipulators were selling off their shares and enjoying the climb along the way. The manipulation was often done through increased share activity as well as false positive publicity. By the time the stock hit its peak the original pool manipulators had sold off their shares and all of the everyday shareholders that had been duped into their shares got to ride the stock back to its real market price. What