Many American generally remember the crash of the stock market in 1929 as a very scary moment in American History. It marked the fall of the biggest economy and the start of a great depression in the greatest country in the world. It was a terrible time for many people who not only lost all of their money, but their jobs, homes, cars, and personal belongings. Many men, women, and children were put on the street with no place to sleep, no food, and only the clothes on their back.
Before taking this course, I had a basic understanding of the Great Depression, I knew about the economy, the high number of unemployment, the Dust Bowl, and the extreme poverty that existed in America. However after participating in the class exercise of playing the market before the crash, I now know how so many people lost and were influenced by the market itself. I now realize that investing in stocks and seeing the HUGE amount of possible profits that it could provide is very relatable to playing black jack in Las Vegas, but in the blink of an eye all your money could disappear. Even for those who did not play the market, but instead bought cars and borrowed money from the banks were effected with the crash of the markets. The banks lost everything and started calling in loans and people were just not prepared to pay resulting in the loss of car or home. With no investors, overproduction, and underconsumption businesses began to fail forcing people out of a steady job. In the exercise it was terrible to lose all of our family’s money, although we mentioned more than once we were glad it was not real money. The decisions of if, when, what, and how much to invest were decisions made on simply educated guesses, some got lucky, however most fell short when the crash finally came.
Obviously the crash came next as I am posting a tad bit late, but now the question is what to do about it?