It isn’t the exact situation as enrolling for a credit card, but it is the same concept. I didn’t sign up and I am glad because there could have been hidden fees or conditions that I didn’t know about, like the film explained. I will continue to decline offers unless I fully understand what I am agreeing to and not just doing it for the little enrollment prizes, and I will only sign up if I have the money. It is overwhelming how much debt Americans are in and how much the banks make from interest and late fees, and I don’t want to contribute a dime! Also, if I do ever find myself in debt, I wont make the mistake that some people in the film made by getting loans to pay a debt, because then you are just getting yourself into debt with many different companies and the debt increases.
Perhaps the worst economic downturn in the history of the United States occurred from 1930-1939. The Great Depression led to domestic and international crises effecting the poor and wealthy alike. Many financial experts today continue to debate the cause of The Depression, although most agree that several events led to the economic decline. The famous stock market crash on October 29, 1929 is just one of many causes economists believe led to The Great Depression. Known also as Black Tuesday, October 29th left stockholders shattered with recorded losses reaching $40 billion dollars (Kelly, n.d.).
The financial crisis of 2008 was the most detrimental crisis since the 1930s when the Great Depression transpired. Stock markets had fallen all around the world, huge financial institutions had collapsed or were bought out, and every nation’s government needed to bail out their financial systems. There are many different theories as to why this crisis began including the blame of deregulation and regulation among other things. The housing boom reversal and the subprime mortgage crisis had a large influence on the occurrence of the financial crisis which makes me believe greed and not enough regulation encouraged this to occur. The subprime mortgage crisis was a result of excess borrowing because of the assumption that housing prices would only continue to rise.
For instance, a new home buyer that doesn’t have good credit would be told that a subprime loan is best for them. Subprime loans also use too much information for the average person to understand. So the people who couldn’t afford a normal mortgage rate would see the benefits of a subprime loan. Banks would make sure their clients knew that subprime loans were safe, but they just used the loans to get rich at the expense of their customers. At the same time, subprime loans can be ethical tools that were misused.
Then finally on October 29,1929th the stock market crashed, because no one was buying and this directly led to the Great Depression. After the Stock market crashed not even 2 months later, the stock holders had lost more than forty billion dollars. Though the market had once again began to come of its losses back by the end of 1930, it was not enough and America entered what we now know as The Great Depression. After the stock market
The first big issue is the fact this time period is predominantly remembered as the “Great Depression.” The Great Depression began on October 29th, 1929 with the crash of the stock market in the United States. With stocks worth nothing, and a collapsing banking system the U.S. fell into a serious state of emergency. “The New Deal” had been put into effect by 1933 and had been putting a little giddy-up back into the economy. But by 1937, with the curbed spending by FDR and savings again on the rise, the economy and American lives took a second downturn and was referred to as the depression of 1937 I believe. As a business owner, people faced a lot of trauma in each major industry in Oregon.
From 1930 to 1930 over 10 000 banks failed. This magnitude of banks failing led to 6.8 billion dollars to be lost. Due to inflation, in today's money that would be around 60 billion dollars. This meant the money in the banks had disappeared, and so had people's life savings and investments. This life changing experience shows how extreme the depression was.
The 1920′s could be described as economic boom gone bust. The early 1900′s began with an advancing industrial revolution and ended with the Stock Market Crash of 1929, which is one reason it is known as an era of contrast. The trigger that caused the great depression began with the boom in sales of stocks in a bull market. Credit was developed and debt was created. Stock prices hit rock bottom and wild selling left banks with little in reserves to stabilize.
Franklin D. Roosevelt and the Success of His New Deal The American economy started weakening by the middle of the1920s. However, over investment and speculating in stocks inflated their prices that contributed to the delusion of a robust economy. Since stocks were the hottest commodity to invest in, people borrowed money and used their stocks as collateral to the banks.The Great Depression was considered started on Black Thursday October 24th, 1929 when the New York Stock Exchange collapsed in the greatest market crash with the Dow closed at 316.38, and the plunge continued until the Dow reached its low of 41.22 in 1932. When the stocks values dropped, people were not able to pay for their debts while the banks just held worthless collaterals. Many banks declared bankruptcies because they could not get back their money from stock investors.
The Great Depression was triggered by a sudden, total collapse in the stock market. This day, October 29, 1929, came to be known as Black Tuesday. There were many probable causes of this devastating time, such as massive bank failures, and the stock market crash. Others, such as economists, such as Peter Termin and Barry Eichengreen, believe the blame lies on Britain’s decision to return to the Gold Standard. According to many sources, recession cycles are a normal phenomenon.