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Essay

the great crash 1929

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Issue:

Book Reports

 

Written by:

John R

 

Date added:

January 24, 2011

 

Level:

College

 

Grade:

A

 

No of pages / words:

1 / 232

 

Was viewed:

6712 times

 

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Essay content:

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...
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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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