Causes of the 1929 Stock Market Crash (Black Tuesday) Over speculation in stocks

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Causes of the 1929 Stock Market Crash (Black Tuesday)

  1. Over speculation in stocks

  2. Buying on Margin

  3. British raised interest rates – lured investors away from stock market

  4. Collapse in real estate market

Causes of Stock Market decline in 2007-08

  1. Over speculation

  2. Collapse of Lehman Brothers

Causes of Great Depression

  1. overproduction of farm and factory goods

  2. uneven distribution of income – income gap

  3. over-extended borrowers – too much credit

  4. global depression

  5. dust bowl – Midwestern drought

  6. Hawley-Smoot Tariff

Causes of 08-09 Recession (Great Recession)

  1. over speculation in real estate

  2. bad loans to risky borrowers

  3. declining stock market

  4. Adjustable rate mortgages (ARMs)

  5. historically low interest rates

  6. uneven distribution of income

Hoover measures to grow the economy

  1. Government spending on public works –Hoover Dam

  2. Reconstruction Finance Corporation – bail out for banks, RR, local and state governments

Obama measures to grow the economy

  1. Bank bail outs $700 billion – (TARP)

  2. $900 billion stimulus bill – energy, education, infrastructure

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