Solution pre intermediate 3rd edition: Unit 7 Wall Stre… — Transcript

After the First World War, from 1918 to 1929, the USA's economy grew quickly. On Wall Street, share prices on the American stock market rose, and a lot of people believed this growth would never stop. But this period of prosperity, known as the Roaring Twenties, ended suddenly with the Wall Street Crash. The problem was that it was too easy for people to borrow money. As share prices rose, the banks lent more and more money so people could buy more and more shares. After all, if share prices continued to rise, they would make a lot of profit. But if they fell, then people wouldn't be able to pay back the money they had borrowed. Sadly, this is exactly what happened.

In September 1929, when the Dow Jones Index, a list of 30 of the most important stocks on the stock exchange, started to fall in value, suddenly people started selling all of their shares. [Music] On Thursday, the 24th of October 1929, people traded 12.9 million shares, and the Dow Jones Index fell dramatically. The next day, the heads of New York's biggest banks decided to act. They bought a large number of shares in important or blue-chip companies. At first, they thought the plan had worked, but in reality, it hadn't. People all over the United States were still selling their shares. On Monday, Black Monday, the Dow Jones Index fell by 13%. On Tuesday, the index fell by another 12%.

That day, the market lost 14 billion dollars in value. In November, the market began to recover, but millions of people had already lost everything. People that had borrowed money couldn't afford to pay it back. Some people, those that owed a lot of money, lost their homes and their savings. A lot of people that hadn't borrowed money lost their jobs as companies across the United States closed down. The country went into an economic depression that soon spread around the world. It was the longest-lasting depression in the 20th century.

in september 1929 when the dow jones index a list of 30 of the most important stocks on the stock exchange started to fall in value suddenly people started selling all of their shares [Music] on thursday the 24th of october 1929

people traded 12.9 million shares and the dow jones index fell dramatically the next day the heads of new york's biggest banks decided to act they bought a large number of shares in important or blue chip companies at first

they thought the plan had worked but in reality it hadn't people all over the united states were still selling their shares on monday black monday the dow jones index fell by 13 on tuesday the index fell by another 12

that day the market lost 14 billion dollars in value in november the market began to recover but millions of people had already lost everything people that had borrowed money couldn't afford to pay it back some people those that owed a lot of

money lost their homes and their savings a lot of people that hadn't borrowed money lost their jobs as companies across the united states closed down the country went into an economic depression that soon spread around the world it was the

longest lasting depression in the 20th century