The author included the information about 1920 and 1925 because that was the time the U.S economy expanded rapidly, The Roaring Twenties. Until 1925 there wasn’t legal requirement to separate the operations of commercial and investment banks, the investment banking was consisted of <em>JP Morgan & Co, Kuhn, Loeb & Co, Brown Brothers and Kindder, Peabody & Co</em>. Their funds could be used to fund the underwriting business of the investment baking side.
In 1929 everyone was putting their savings into stocks, not only the wealth part but the poor part too and because of that the stock market reached the peak in August 1929. But than the production declined causing unemployment and with that the stock prices were much higher than their actual value. The economy was struggling, the debt was rising and the banks had and excess of large loans that couldn’t be liquidated.
In the 1930s over 9,000 banks failed because people didn’t trusted them to put their saving. The Great Depression the official unemployment rate was 25% and the stock marked declined 75% since 1929. But in 1933 now with Rooselvet’s administration he took immediate action about the economic woes first announcing that all banks would close, Bank Holiday. The Congress would pass reform legislation and reopen the banks. In “<em>first 100 days</em>” Roosevelt’s administration stabilized the industrial and agricultural production and created jobs and also created the Federal Deposit Insurance Corporation (FDIC) to protect depositors’ accounts and the Securities and Exchange Commission (SEC) to regulate the stock market and prevent what happened in 1929.
The big change between the crises in the 20s and 30s were all about who was in charge, President Hebert Hoover didn’t take much lead about the crises but Roosevelt did.
No. European countries wanted colonies because they wanted to gain more wealth. Gold and silver from the colonies made the countries richer. Another reason was for the raw materials that they needed for their factories. Getting raw materials from the colonies was much cheaper than buying from other countries. One more reason was the desire for land and power. Having colonies made replenishing supplies easier and in case of war, the colonies could be used as military bases.
<span>Nationalism is an extreme form of patriotism and loyalty to one’s country. Nationalists place the interests of their own country above the interests of other countries. Nationalism was prevalent in early 20th century Europe and was a significant cause of World War I. Most pre-war Europeans believed in the cultural, economic and military supremacy of their nation. </span>
The answer to which of the following is NOT a purpose for reading stories in a newspaper is to incite.
