The 1929 Stock Market Boom and Bust

The video discusses the economic decline in the late 1920s, highlighting the disconnect between the real economy and the speculative stock market boom. Despite declining industries and rising debt, stock prices soared due to mass speculation and confidence. The Florida real estate bubble serves as a cautionary tale. As the market frenzy continued, even prominent figures invested heavily, ignoring warnings of a crash. The video concludes with the market's volatility and the eventual crash, emphasizing the dangers of speculative bubbles.

What was the state of the steel production and construction industry during the late 1920s?

• Steel production was declining, and the construction industry was sluggish.

• Both industries were unaffected by the economic conditions.

• Both were booming with high demand.

• Steel production was stable, but the construction industry was booming.

What was the nature of the speculative boom in the 1920s?

• It was based on solid company profits.

• It was limited to a few wealthy individuals.

• It was driven by mass illusion and speculative investments.

• It was a result of government intervention.

Which famous personality was involved in the stock market during the speculative boom?

• Charlie Chaplin

• Thomas Edison

• Albert Einstein

• Groucho Marx

What role did astrologer Evangeline Adams play in the stock market frenzy?

• She predicted the market crash.

• She advised people to avoid the stock market.

• She published a newsletter linking zodiac signs to stock prices.

• She invested heavily in technology stocks.

What was the general public's belief about the stock market in 1929?

• They believed it would continue to rise indefinitely.

• They were indifferent to the stock market.

• They thought it was a temporary rise.

• They believed it would crash soon.

What significant event occurred on September 3rd, 1929?

• The stock market crashed.

• The government intervened in the market.

• The stock market hit its all-time high.

• A major bank declared bankruptcy.

Who warned about an impending market crash in September 1929?

• William Durant

• Thomas Lamont

• Roger Babson

• John Jacob Raskob

What was the Babson Break?

• A sudden rise in stock prices.

• A severe dip in the stock market.

• A new investment strategy.

• A government policy to stabilize the market.

How did financial leaders react just before the market crash?

• They predicted a market crash.

• They advised people to sell their stocks.

• They were optimistic and confident.

• They were pessimistic about the future.

What was the general trend of the stock market in the weeks following the Babson Break?

• It stabilized and continued to rise.

• It fluctuated wildly up and down.

• It crashed immediately.

• It remained unchanged.