The End of the Roaring 20s

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The End of the Roaring 20s
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Economics 101

• Economics is hard to understand. However, one
  general rule explains it all
• The whole world runs on borrowed money.

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The six underlying weaknesses of the 1920s economy
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1. Lack of diversification
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2. Maldistribution of purchasing power
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3. Farmers in debt
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4. Reckless banks
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5. International trade
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6. International debt structure
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The stock market
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Out of control speculation
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Everybody ought to be rich.
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The crash
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The aftermath
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The role of the Federal Reserve Bank?
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President Herbert Hoover

• We in America today are nearer to the final
  triumph over poverty than ever before in the
  history of any land. The poorhouse is vanishing
  from among us. -Aug 1928
• The fundamental business of the country is on a
  sound and prosperous basis. -Oct 26, 1929
• What the country needs is a good big laugh.
  There seems to be a condition of hysteria. If
  someone could get off a good joke every ten days
  I think our troubles would be over. -1931