This means that the prices for stock were too high, far higher than they were really worth, then they fell drastically. People who had borrowed money to buy high-priced stocks (intending to sell the stocks at a profit and repay lenders), went bankrupt. That’s further expounding on what I said about buying on margin. Black Tuesday also marks the beginning of the great depression (Regan3). Living conditions during this time were unsanitary and horrible.
Since Jerry had no idea what he was doing as a criminal mastermind, he couldn’t successfully put across some guidelines for the two hit men. His greed also just wanted it done for himself, while he just basically sits back and lets it happen. This mistake is what leads to the three innocent lives being lost in the car, and later Jerry’s wife ends up being killed after not cooperating properly with one of the hit men. All Jerry wanted was the easy way out of his financial slump, but he ended up getting himself into much more than he asked
This was because unemployment was rising fast (Doc. E), which meant people were spending less to the point that it caused a huge shortage of income to many companies and businesses. The stock exchange was a replacement of work, where people risked their money on what they speculated would do well (Doc. F). Since the unemployment rate was high and businesses were failing, the stock market went through a dramatic crash causing many people and companies to go bankrupt.
The capitalism created the conditions which lead to the depression. Its effect was tremendous because thee money they used was gold; when Roosevelt started he took all of the gold; this lead to people becoming broke and they could no longer use the gold pieces. The stock market was full of investors whom invested in gold; with no more gold their money was useless. Roosevelt finally tried to increase the number of Supreme Court Justices and this also was a conflict with the principle of checks and balances. Capitalism was involved causing money to disappear and a lot of citizens became broke which effected most of the communities people to become homeless or broke.
The collapse of the housing market and unemployment caused the most damage. Between 1991 to 1992 unemployment had gone back up to 2.6 million. Negative equity meant home owner were paying mortgages far higher than their homes were worth. Many people could simply not keep up with the increased prices and resulted in them losing their homes due to the bank repossessing them. The recession hit close to home for the Tories, effecting the middle class not just the working class of the industrial north.
When corruption occurs it damages the reputation of the employees and the business. Society relied upon this firm to assist in making them money but the firm was more concerned with their bottom line. Many of the individuals doing business with these firms lost their life savings and destroyed some of the trust that investors have with the Wall Street firms. It makes people have second thoughts about investing in the stock market. Another effect this unethical behavior had on these organizations been they agreed to pay a penalty of over $1.43 billion dollars as compensation to the victims.
The ultimate goal is to protect investors. Reason Many acts of corporate corruption in the 1990s and early 2000s brought on this regulation. There were many loopholes that allowed for accounting errors without any legal incentive to correct the problem. Due to the accounting practices at companies such as Enron, Tyco, and WorldCom investors lost billions. The accounting practices created a scandal in which the companies were able to hide information from investors.
They had also not yet learned the importance of limiting the amount of money they leant and to whom. During the Great Depression more than 9000 banks closed and millions of people lost their life savings. When the banks closed people became scared and stopped spending as much. The drop in spending caused companies to lay off workers. This caused more banks to close, followed by more reduction in spending and then more employees were laid off.
The Great Depression changed and effected Americans and the economy. Millions of Americans lost their jobs and homes. The economy went though a lot of failure of meeting financial obligation in banking and in trading. Because of this Europe and many other nations were set back from many of our abilities to help with their broken economies as well.The unemployment in the Depression was very scary. The Depression started with the market crash of 1929.
Unfortunately, it did. On October 29, 1929, the stock market crashed, and the United States once again found itself in economic turmoil. Prior to this, many people had begun purchasing stock on margin, or in other words, on credit. When the market crashed, the stock brokers called the loans they gave out back so that their companies may survive, except the loans couldn’t be paid back by the debtors. Many of the nation’s banks soon went under because they too had paid into the stock market and had lost much of their money.