the great crash 1929

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Title: the great crash 1929

Essay Details:

Subject: Book Reports

Author: Ashley S

Date: May 12, 2014

Level:

Grade: A

Length: 1 / 232

Essay text:

When stocks dropped, indicators sunk into a steep three-year decline. Today indicators bounce around from month to month, but generally they don't indicate much growth. The income distribution in the 1920s was strongly skewed toward higher-income people; this meant that the economy was dependent on their purchases of luxury items. When the stock crash hit, this group was greatly affected and their reduced purchases made the downturn more serious. Investment trusts used an incestuous web of cross-investments to inflate their performance, similarly to how Enron built a network of shell companies that traded among each other to create illusory profits...

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