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What Are the Causes and Effects of the Great Depression?
The Great Depression has affected the United Sates in many ways and has caused a loss that we can never fully recover from. It was gap in U.S. history that had cost us many lives and jobs. The depression began in late 1929 and lasted for about a decade. The 1920’s or “The Roaring Twenties” played a big role in causes of the great depression. The 1920’s were a time of peace and great prosperity. After World War I, the “Roaring Twenties” was fueled by increased industrialization and new technologies, such as the radio and the automobile. Air flight was also becoming widespread, as well. The economy benefited greatly from the new life changing technologies. As the stock market soared, many investors quickly snapped up shares. Stocks were seen as extremely safe by most economists, due to the powerful 1920s boom. Investors soon purchased stock on margin. Margin is the borrowing of stock for the purpose of getting profit. If a stock drops too much, a margin holder could lose all of their money and owe their broker money as well. From 1921 to 1929, the stocks rocketed. Millionaires were created instantly. Soon stock market trading became America’s favorite pastime as investors bought stocks to make a quick profit. Investors mortgaged their homes, and foolishly invested their life savings in hot stocks, such as Ford and RCA. To the average investor, stocks were a sure thing. Few people actually studied the fundamentals of the companies they invested in. Thousands of fraud companies were formed to trick uneducated investors. Most investors never even thought a crash was possible. To them, the stock market “always went up”. By 1929 the stock market reached its all time high and investors were buying stocks by the dozen. Then all of a sudden prices started lowering. All investors sold their stock buy no one wanted to buy. This one day had caused a decade of Depression.

The causes of the Great Depression
In 1929 a panic on the New York stock Exchange introduced a mouth dropping effect. The stock market that had been giving everyone the profit they wanted collapsed. Several events that occurred before 1929 caused this to happen on a long term basis.
During the roaring twenties everyone was prospering and making profit. The manufacturers were trying to sell there products to as much financial groups as possible, but they were unable to lower there prices so the poor can buy there products. (Lamb, Annette 2008).
The government came out with the process of credit. It worked by a person buying a product over time paying a monthly bill. For example, if someone wanted to buy a washing machine that cost $500 but they only had $100. They would pay there $100 and then pay a certain amount every month till the washing machine was paid off. The government also charged the buyers more than the product actually cost in stores, so in the end they wound up paying more than the original price. This process put many Americans in debt. In record almost every American spent 75% of there yearly income on consumer goods. (Lamb, Annette 2008).
When Americans put more on credit than they could afford they went into debt. This happened to many Americans making the nations total go down and causing a worldwide problem.
The short term reason for the stock market crash of 1929 was the middleclass people getting into the stock market. Middle income people started buying stocks on margin in order to get themselves in on the economic boom the U.S. was having during the roaring twenties. At that time there were soaring prices for stocks. People paid a small percentage of a stock’s price as down payment and borrowed the rest from a stockbroker. (Lamb, Annette 2008)
The system worked well as long as stock prices were rising. If they fell, however, investors would have no money to pay off the loan. In September 1929, some investors began to think that stock prices became too high. They started selling their stocks, believing prices would soon go down. By Tuesday October 24, the gradual lowering of stock prices had become an all out slide downward. A panic resulted. Everyone wanted to sell stocks, and no one wanted to buy. Prices plunged to a new low on Tuesday October 29. A record 16 million stocks were sold. Then what Americans thought could never happen, the stock market collapsed.

The effects of the Great Depression
The Great Depression affected not only the people but the country as well. International trade and industrial production dropped sharply right after the stock market crash of 1929. Wages shrank, unemployment rose, and widespread misery proved that something was wrong with the economic system. The whole world felt the impact of this tragedy but Americans suffered it the worst. (Slee, Tom 2008)
What people in America noticed almost instantly about the Depression was the reduction of their incomes. In addition to millions of wage earners who were thrown out of work entirely, millions more became part-time laborers. Even those who kept full-time jobs often had to accept a reduction in wages. (Slee, Tom 2008)
In addition to the cut wages the Depression also affected international trade and manufacturing which shrank rapidly and filled many people with apprehension. In 1929 the estimated value of United States imports and exports had reached almost ten billion dollars. (Mandel, William 2008). By 1933 the value had dropped to three billion. Furthermore, American industrial output was cut in half. This had a big affect on the United States because most of there exports were used by the government to pay bills.
With all the people taking there money out the bank to try and recover their savings, the banks went bankrupt. Thousands of banks were forced to close as a result of this. Business owners also suffered from the Depression. With there bills and debt rising they were no longer able to pay there workers or buy their products, and were forced to fire many workers. (Mandel, William 2008). It was hard to find affordable materials and eventually many businesses had no choice but to close.
The dislocation of trade and industry, the falling prices, and the rising unemployment that came with the Depression forced statesmen and economists to seek remedies. But the experts could not agree in what was wrong or what measures would prove most effective in restoring the U.S economy. The solution to this problem would soon come. (Mandel, William 2008). During the 1930s the government was providing weapons, tanks and other much needed necessities to Great Britain under the lend-lease act. This was a pre-start to the coming war effort. In 1939 when America was hit at Pearl Harbor, World War Two struck out. Many Americans enlisted to go to war in order to get money and start a new life for there families. (Mandel, William 2008). With all the needed supplies for the war, the government hired people in factories to make weapons, munitions, tanks, airplanes and any other supplies needed for war. This was a big opportunity for unemployed people and many took the job as factory workers. As the unemployment rate was lowering so was American debt. (Mandel, William 2008). With people getting money and paying off there bills, they were able to buy everyday items to keep them going. This cycle opened many more businesses and eventually pulled the United States economy out of the Great Depression.
ok well this is my social studies report on the causes and effects of the great depression. it is split into three parts. the first is the introduction and explains what led up to the great depression. the second is the causes and the third is the effects. i just need you just to edit my grammar and punctuation and im good. also i still need a conclusion if you can help me with that.
ohh yea and the names with parenthesis and years are just giving credit to the sources i used. don’t ask my teachers made me do it….
i did this all in like a night and i think i deserve to get it edited for all the work i went though. and i suck at grammar so i cant edit it myself.

Forget the Answerer #1. I will read it for you =]

I didn’t find anything wrong with it. Not one bit. Everything was factual and straight to the point. You didn’t confuse me, one bit!!!

Do you have pictures of the Depression?

http://www.forties.net/files/migrant_mother_1936__great_depression.jpg

http://userwww.sfsu.edu/~hlcooper/images/HIST%20450%20Images/DLangeMigrantMother.jpg

http://history1900s.about.com/library/photos/blyindexdepression.htm

Love the report!!!!!!!!!!

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I want to setup a multi-monitor trading computer like you
see on Wall Street with the four lcd monitors on one stand.
(two on top and two on bottom)

I have also seen them in the Day Trading Software infomercials.

How can I setup a Four LCD Multiple Monitor Computer for
Day Trading the Stock Market and Forex Financial markets?
Is there somewhere I can buy a system, or are there other
options available to consider? I’d appreciate any good advice!

The Three main ways to Setup Multiple Monitors

1) You can buy a pre-manufactured multiple monitor computer. The best place to purchase a multiple monitor computer is at: http://Multi-Monitors.com. They carry a multi-monitor computer line called SUPER PC that can support from 2 to 12 monitors (or more if you ask).

http://www.multi-monitors.com/SUPER_PC_Multi_Monitors_com_Multi_Screen_Computers_PCs_s/23.htm

http://www.multi-monitors.com/SUPER_PC_Multi_Monitors_com_Multi_Screen_LCD_Displays_s/21.htm

2) You can get a USB to VGA Adapter, or USB to DVI Adapter that will allow you to add an extra monitor to your computer via any USB2.0 Port. You can also add multiple extra monitors by using multiple adapters. This is a great option for viewing documents, surfing the web, using Microsoft Office and many other business tasks. This is not a good option for intense graphical situations such as HDTV, Blu-ray, Gaming and 3D / CAD Workstation applications. For those types of scenarios, it is highly recommended that you purchase a high-powered multi-monitor workstation or a Matrox Dual or Triple Head2Go.

http://www.multi-monitors.com/SUPER_PC_Multi_Monitors_com_Multi_Screen_USB_Adapters_s/22.htm

3) You can replace or add an extra video card to your existing computer, depending on how many monitors you wish to support. Although this sounds easy enough, this is a rather complex solution for a beginner, especially when trying to find a compatible graphics card. For this reason, I am going to write an entirely seperate post on that topic and will link to it here, very soon.

http://www.multi-monitors.com/category_s/1914.htm

Once you have your multiple monitor system set up and ready to use, you will need to enable all of your monitors in your “Display Properties” Control Panel. Here is a great link to a complete and animated walkthrough of how to enable your multiple monitors in Windows.

How to Setup Multiple Monitors (Instructions)

http://www.multi-monitors.com/SUPER_PC_Multi_Monitor_Computer_Setup_Instructions_s/40.htm

This is what it will look like when you are done:

Multi-Monitor Video Demos:
http://www.youtube.com/watch?v=j_avGStqZOI
http://www.youtube.com/watch?v=1AR7WDpCXj4

What do you think the U.S. should do to solve the economic crisis? How should we fix the stock market, the banking system and our trading of imports and exports?

The US and all other countries should take a long hard look in the mirror and ask themselves what got them into this mess in the first place. If they are honest and identify that their greed and their desire to put one over there fellow man caused it, then we have a chance to really change things. If that is not recognized then further crisis are guranteed. This is also the opinion of Alan Greenspan:
http://news.bbc.co.uk/1/hi/business/8244600.stm

The only way that the world can come out of this crisis is by people changing their attitude towards there fellow man. How can we change mankinds egoism ? The following links explain how:

http://www.laitman.com/2009/04/the-worlds-problems-are-our-problems/

http://www.laitman.com/2009/06/will-the-crisis-bring-us-closer-to-marxism/

http://www.laitman.com/2009/06/we-can-learn-a-lot-from-an-international-hate-your-children-day/

Just looking into different types of investment. I’m already investing in US Savings Bonds but I was curious about the stock-market. I know nothing at all about it. A friend recommend to invest in ALSK Alaska Communications Systems Group and LINE Line Energy, LLC. I just wanted to know about trading and pretty much how the stock-market works.

Go to Yahoo Finance and type in those names on the subject line, a lot of information will pop up, and you at least can read all about these companies.

Forex and Stock Traders that have success. I know that You won’t tell me how to actually trade Your system or method, but i am just saying,….it would be a really good thing if You did. You don’t know how I feel trading for 4 years, everyday, trying out differnet methods. none of them work. I’m just saying it would be a really goo dthing if You told me. I am in such stress right now, and please, don’t tell me to take a break from Forex. Do You remember when You first started trading FOREX? It was really hard. And then, You found something, a secret of the Market trading. Well, I am using all differnet kinds of indicators, methods, systems, advices, and they don’t work. Please, I don’t want to quit with 4 years of wasted time in my life. Just send me an email….Dan7974@yahoo.com

Thank You.

p.s. again, I would be very happy if someone owuld help me.

4 years is a long time. Do you have any mentor ? Maybe you should ask around ? There are bascially 3 things in Forex you must remember. 1. Money Management. 2 Trade management 3 Trading Psychology. All 3 must work. 80% of the time traders especially novice spent 80% of their time twitching their system. Which is important. But you can get it right but nver see you Acct Equity grow. Becasue to see it grow. You need the other 2 legs, Trading psychology. And Money Management. If you have never heard of this before its time to take a "break" i know you hate to hear that word. But to jump higher you need to flex your knees and go down abit. So take a break, restrategise, do some reading, do a course, get a mentor. To break a habit takes 30 days. Its a battle out there. And its a mental battle. So behave as if you are in a battle. You are the general of your Forex Army, namely your equity. There are some resources here might help you so do take a look. And drop me a line if you need some more pointers. If i were you, start with Dr Alexander Elder’s Trading for a living and Come into my Living Room. And also get the work book. But please, take a break and restrategise. Dont "revenge" trade. There is a fine line between "gambling" and "Trading". Also another fine line between "Addiction" and "Working". Whatever it is i have been there. No insult intended.
http://www.geocities.com/lcming/Forexbooks
http://www.geocities.com/lcming/ForexForex
http://www.geocities.com/lcming/Forexsignals

I want to know which of the following advisory services is the best:
* Anacott Investments Limited
* Big Trends*
* Disciplined QQQ Trading
* Glinser.com
* Grandslam Options
* Income Spread Trader
* Income Trend
* Index Trading Systems
* International Stock Report
* Investfit
* Investors Observer*
* Kash Kings Systems
* NOS Uncovered Options
* The Optionist
* Option Partners
* The Option Principal
* OptionSmart*
* Option Alarm
* The Options Report
* OTS Options Signals
* Schaeffer’s Research*
* SRS Market Research Services
* Stock Market Cash Machine
* Wicked Profits
* WiseOptions
Swaminathan P, can you please provide some links to the "scam" sites you are talking about? Thanks.
Note: the reason I use this list is because this is who I have setup for auto-trading with my broker OptionsXpress.

As far as my goals, they are capital growth with high risk tolerance. This would be a small percentage of my trading captial. However with most of these services you use iron condors and spreads, in which case $5000 per trade seems like the magic number to be worth the trading fees.

Without comment on the quality of any on your list. It would depend on your level of trading, and what your goals are… That being said most if not all of the information in ANY market should always be taken with a grain of salt….

I will end with one bit of advice I gave some students at a speech I gave several years ago on the topic…

Trading is not easy, I spend 50+ hours a week if not more. Trust me if there was a way to do this for 30 min a day I would not sell it to you on an infomercial, I would be phoning my orders in from my house in the mountains.

Hi, I am a newbie in stock exchange market and have the following questions.
What’s the difference between NYSE/AMEX and NASDAQ?
as I know, NASDAQ is a automated system that help buy/sell stock automatic. however, what does it mean by NYSE listed or NASDAQ listed stock, isn’t it we are trading the same stock no matter what system they are at? if I buy/sell a stock (e.g. FBTX – NYSE stock) over the online broker account, let’s say tdameritrade, is that means I am trading over the automated system, if so, it is a NASDAQ system? kind of confuse.

my second question is: I got an answer for telling whether a stock is NYSE/AMEX or NASDAQ stock base on its symbol,
1,2,3 letter – NYSE and 4 letter was NASDAQ, however, why the FBTX is a NYSE stock?

please help. thanks.

The following link is a tad bit technical but it gives some starting reference points to look up elsewhere, and it is authoritative: http://www.sec.gov/divisions/marketreg/mrexchanges.shtml

Go to the ten exchanges listed and each one will have a history page(s).

As for the odd-symboled stock, some companies move up. NASDAQ has a largely small technical company representation. NYSE expects some solidness and stability that NASDAQ doesn’t. Sometimes, then, when a company feels it is sufficiently "ready for prime time" they move up. Think of the exchanges as major league baseball. Chicago, Boston, and Philadelphia have minor league teams while NYSE and NASDAQ are the majors. Just the same, if you were a good baseball player, would you rather play for the Yankees, or the Mets? FBTX moved to the Yankees.

When I say beginner i don’t mean brand new, I’m only 16, but i’ve already read a few books for beginners on the basics of how the stock market works and how to read a stock quote. I have bought a few stocks and actually made a little money but that was all blind luck im looking for a good book preferably on how to pick good short-term stocks, im smart but not very patient. If you know of a book ,preferably from this time period and not one that talks about how the internet is the "future of stock trading", and outlines how to find a stock you may be interested research it and decide weather or not it is a good stock. I’d like something that helps me work out a system and reduce the amount of luck involved in my trading.
Thank You,
Brian Knight

Hi,
A good practical way to have way an experience for investing into stock market is play dummy game on site called moneybhai.com