The Great Fail Depression: Case Study 1: Great Depression
CASE STUDY 1: GREAT DEPRESSION 1929
The Great depression occurred in the United States of America (USA) during 1929 and lasted until 1939.
The 1920’s, also known as the ‘Roaring twenties’, was a decade were the USA economy expanded rapidly. At that time people had found a new way of making money, very fast, through the buying and selling of market stocks. The interesting thing about this ‘new’ way of making money is that it did not differentiate economic status, hence the problem. Because anyone could buy and sell stocks, individuals (and therefore families) started to use their life savings on the stock market as a way of savings (and investment) not taking into account the risks that this entailed.
So, on the one hand, USA stock market …show more content…
military, who did not foresee the impact it would have on today’s society. Commercially the internet started to catch on 1995 and as everything new, it meant an untapped market and from here the rise of the speculators.
The Dot Com bubble started on April 1997 when access to the internet expanded with online retailing being one of its biggest propellers and when big investors plunged into the newly discovered market. With the investment came the stock value rise, NASDAQ value went from 1000 in 1995 to more than 5000 in 2000, anyone with an idea could make money.
The rise kept on going up until March of 2000 when NASDAQ value dropped from $6.71 trillion to $5.78 trillion in two days, by the month of April, companies were losing between $10 and $30 million a quarter. Many of the Dotcom companies started closing, companies that were making millions of dollars like Pet.com that had invested $2 million dollars solely on advertisement at the 2000 Super Bowl commercials and by the next year it was gone.
Despite the closing of many companies, and companies that at the time were administrating very high incomes, when the crash came down, there was no real impact on the
The Great depression occurred in the United States of America (USA) during 1929 and lasted until 1939.
The 1920’s, also known as the ‘Roaring twenties’, was a decade were the USA economy expanded rapidly. At that time people had found a new way of making money, very fast, through the buying and selling of market stocks. The interesting thing about this ‘new’ way of making money is that it did not differentiate economic status, hence the problem. Because anyone could buy and sell stocks, individuals (and therefore families) started to use their life savings on the stock market as a way of savings (and investment) not taking into account the risks that this entailed.
So, on the one hand, USA stock market …show more content…
military, who did not foresee the impact it would have on today’s society. Commercially the internet started to catch on 1995 and as everything new, it meant an untapped market and from here the rise of the speculators.
The Dot Com bubble started on April 1997 when access to the internet expanded with online retailing being one of its biggest propellers and when big investors plunged into the newly discovered market. With the investment came the stock value rise, NASDAQ value went from 1000 in 1995 to more than 5000 in 2000, anyone with an idea could make money.
The rise kept on going up until March of 2000 when NASDAQ value dropped from $6.71 trillion to $5.78 trillion in two days, by the month of April, companies were losing between $10 and $30 million a quarter. Many of the Dotcom companies started closing, companies that were making millions of dollars like Pet.com that had invested $2 million dollars solely on advertisement at the 2000 Super Bowl commercials and by the next year it was gone.
Despite the closing of many companies, and companies that at the time were administrating very high incomes, when the crash came down, there was no real impact on the