Comparing the Crashes by Sierra Spiker https://padlet.com/sspi8121/ypsd2egchpdr Sydney Elliott, Sierra Spiker, Ally Luna, Julianne Tarr en-us 2017-04-19 17:29:38 UTC 2017-04-19 18:47:30 UTC hello@padlet.com https://padlet-assets.s3.amazonaws.com/icons/Lightdecrease.png What happened in the Crash of 1929 and 1987? sell0013 https://padlet.com/sspi8121/ypsd2egchpdr/wish/167106773 The stock market crash of 1929 was expected because there were signs that showed the economy was getting bad. October 24, 1929 (“Black Thursday”), and October 29, 1929 (“Black Tuesday”) were the two worst days of the crash. Stock prices rose in 1928 caused by the Dow Jones Industrial Average being 381.2 on September 3rd and stock prices lowered by 10 percent after this rise. On Black Thursday 13 million shares were traded and broke the record. The average shares traded in September was 4 million a day, so this was a drastic change. technology was not fast enough to keep up with the trading and the ticker tape ran half an hour late. Many of United States’ largest bankers wanted to buy stocks above the going prices, in attempt to discourage panic selling. President Hoover told the people that the “fundamental business of the country — that is, the production and distribution of goods and services — is on a sound and prosperous basis.” Another record breaker occurred on Black Tuesday with about 16.5 million shares traded. The pattern continued and the  stock market went downhill from there. The stock market crash of 1987 was unexpected and the stock market crashed on Monday, October 19, 1987 otherwise known as “Black Monday.” Stock prices increased significantly  in the first half of 1987 when the Dow Jones Industrial Average became 2,722.44 on August 25. Prices fell by 8 percent then increased again by 6 percent in the weeks after. Stock prices fell the largest on Black Monday. The Dow Jones Industrial Average fell a record 508.32 points, closing at 1,738 -nearly double the one-day loss record set during the crash of 1929. Some volume was caused by panic selling and some was caused by programmed computers, which is different than the crash of 1929 which was only caused by insider trading and panic selling because technology was not as advanced. Also, because technology was more improved and advanced markets around the world were impacted due to the crash.]]> 2017-04-19 18:31:39 UTC https://padlet.com/sspi8121/ypsd2egchpdr/wish/167106773 What role did the feds play in the Crash of 1929 and 1987? https://padlet.com/sspi8121/ypsd2egchpdr/wish/167109418 President Hoover once said “It’ll fix itself”. Hoover was simply referring to the economic troubles that were being faced during 1929,  when many believed the reasoning for the stock market crash and the great depression was due to federal policies. Before the stock market crash of 1929, Americans believed they could make a living and become wealthy by “playing the market”, in doing so the feds would drop prices on supply to prevent the amount of people who invested all their money to build a stable business of their own. The monetary policy gave the government the ability to manipulate the nation's money supply to control inflation and depression, which made it much harder for people to borrow money they needed to purchase stocks. Americans who had invested and borrowed a lot of money on stocks that crashed lost a lot of money, which left people with no ability to pay off their loans from the bank. The crash of 1929 mainly destroyed the way the US banking systems ran, banks rapidly lost a lot of their money which did not allow people to withdraw any money. The feds had a lot to due with the collapse of the banking system, if the feds would have increased the money supply to provide more money for the banks to use, the banking system would have not crashed and result into a great depression. During this time, markets were favorable and the major goal of the feds was to reconstruct the banks and monetary systems. The federal reserve system, reformed banking system and created the federal reserve board which oversaw a nationwide system of 12 regional reserve districts each with its own central bank and had the power to issue paper money. The feds use open-operation systems by providing money to increase bank reserves. These actions by the feds allowed banks to loan money  to the businesses and individuals who needed money when they suffered from the decrease in value of their stocks. The major issue that resulted in the crash of 1929 & 1987, were the increase of stock pricing. 

]]> 2017-04-19 18:41:14 UTC https://padlet.com/sspi8121/ypsd2egchpdr/wish/167109418 What Followed after the Crash of 1929 and 1987? sspi8121 https://padlet.com/sspi8121/ypsd2egchpdr/wish/167110450 The crash of 1987 indicated the economy was unstable, Wall Street fraud and negative trade balances heightened the issue. Meanwhile, the Crash of 1929 only led to worse things. Although the stock market took a steep crash there was not significant harm to our economy from either. It never led to a depression and was not even considered a “depression” by reporters of the incident, it was called a “market interruption.” With a quick recovery, stock prices managed to reach up to the extent they were once at the previous year which prevented an ongoing depression for both crashes. Even though the end of 1929 the stocks somewhat recovered, unlike the crash of 1987 the stock prices began to drop again. In 1929 the crash led to multiple crashed around the world not only affecting the US but also beginning in London then moving to Paris, Berlin and lastly Tokyo. The crash of 1987 made it comprehensible to Americans that a country's finances are tied within economies and are becoming international. After the Gulf War a short duration of a slump took place between 1990 and 1991 where the American economy went into an expansion period for the next ten years where stock prices persistently ascended. In order to stop another stock market crash there were multiple improvements that were to take place. In 1988 a principal reform was the establishment of circuit breakers, they were used to stop selling when in a panic and allow investors to have time to think over their choices as stock prices are at a decline.Stock exchanges and brokerage films reformed their computers and phones to dispense and issue at a faster rate. Security markets negotiated a plan to communicate on regular terms to regulate activities. Both consumers and businesses were unwilling to spend money due to previous losses during 1929, banks suffered from losing large amounts which did not allow banks to help people with loans while the market was recovering. Unlike the Crash of 1987 the crash of 1929 led to multiple reforms also to prevent any further detrimental crashes. The Glass-Steagall Act of 1933 prevented banks that are affiliated with the Feds from being in contact with companies who sell stocks; The Securities Exchange Act of 1934 inaugurated the Securities and Exchange Commission also known as the SEC to prevent the public from lawlessness in the markets. 

]]> 2017-04-19 18:45:07 UTC https://padlet.com/sspi8121/ypsd2egchpdr/wish/167110450 What Caused the Crashes of 1929 and 1987? juliannetarr https://padlet.com/sspi8121/ypsd2egchpdr/wish/167110589
The famous stock market crash in 1929 that ultimately led to the Great Depression and the crash in 1987 was caused by overpriced stocks, many people buying into the stock market and many selling their stocks simultaneously. Insider trading is when a group of people buy stock into a company and sell stocks to each other in order to increase the value of the stocks so that they could sell those stocks for much more money than what they paid for. This screwed over the stock market because people will see the stock prices rising and buy stock into the company to hopefully make some money from it, but when the group of insider traders suddenly sell those stocks the price of the stocks dramatically fall causing the other stockholders to lose money. Even worse, many bought stocks on margin, or buying stocks with money loaned to them by the bank, leaving those affected by insider trading in even more debt. Furthermore, the United States implemented the Hawley Smoot Tariff which raise the already high 38.5% Fordney Mccumber Tariff to an all time high of 60% making imported goods unreasonably expensive and allowing american industries the ability to raise their prices , which cause inflation, due to the lack of international competition which means when the stocks crashed those who bought on margin could afford to buy any American products. Before the Crash of 1987, similarly, the price of the stocks were too high and millions bought into the stock market, because of these high prices, if a large amount is sold simultaneously the prices of the stocks will decrease dramatically. Eventually, the stock market finally fell on October 19th of 1987.


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