automobiles, telephones, cameras, appliances (refrigerators, washing machines, vacuums,), furnishings, clothing, alcohol, etc., etc., etc. Real estate Rise of (a culture obsessed with the purchase of consumer consumer culture products & showing off those products) mass consumerism —> Advertising and marketing became virtually religions started convincing the masses that the and these products needed deserved —> Very little cash savings High debts People borrowed money to buy consumer products or bought —> products lay-away” (a form of credit) “on Overproduction excessive demand pushed production higher & higher —> 1930's unemployment people unable to repay debts —> 6. STOCK MARKET CRASH (1929) Revealed severe in market economy” (capitalism) “the Demand for stocks and expectations that prices would go higher —> drove prices to unrealistic levels on Margin” people borrow up to 90% of cost of stocks to “Buying —> buy them —> Buying on Margin: Buying on Prices Margin 1929 Others to Collapse Some began tried to sell —> —> —> (borrowed up to sell their to 90% of shares stock cost) Banks began People frantically tried to sell, <— <— in to get whatever they “calling loans” for their investments (Black Tuesday)
automobiles, telephones, cameras, appliances (refrigerators, washing machines, vacuums,), furnishings, clothing, alcohol, etc., etc., etc. Real estate Rise of consumer culture (a culture obsessed with the purchase of consumer products & showing off those products) —> mass consumerism Advertising and marketing became virtually religions —> started convincing the masses that the needed and deserved these products Very little cash savings High debts —> People borrowed money to buy consumer products or bought products “on lay-away” (a form of credit) Overproduction —> excessive demand pushed production higher & higher 1930's unemployment —> people unable to repay debts 6. STOCK MARKET CRASH (1929) Revealed severe in “the market economy” (capitalism) Demand for stocks and expectations that prices would go higher —> drove prices to unrealistic levels “Buying on Margin” —> people borrow up to 90% of cost of stocks to buy them —> Buying on Margin: Buying on Margin (borrowed up to 90% of stock cost) —> 1929 Some began to sell their shares —> Others tried to sell —> Prices to Collapse <— Banks began “calling in loans” <— People frantically tried to sell, to get whatever they for their investments (Black Tuesday)