1. What caused the great crash of 1929?
Banks had started loaning out a lot of money. People who were investing all their life savings into stocks would go and get more loans to invest in the stocks. As the stocks rose and fell, people would try to pay off the loans. Each loan also had it’s own interest rate. With banks loaning out so much, money, there was just nothing left. Stocks finally rose to a huge spot, and if people were smart, the sold all their stocks and got out before it dropped. Not long after it rose a lot, it dropped to almost nothing. Just about everyone lost all their money, and were in debt to banks. People no longer had a home, a vehicle, and hardly had a family as well.
2. What was your strategy in the game?
Mine and Elle’s strategy was to buy up a lot while the stocks were low, and sell when we thought they were decently high. We did an amazing job at this throughout the game until the end when we should have sold all our stocks before it crashed. We discussed it, but had hope that it would rise at one or two more times before it crashed. We were not in debt to the bank. But we did not make any money.
3.Were you using what you learned from the text in your strategy?
We kind of did. We didn’t want a loan though. I don’t trust banks. That’s just me. We were doing rather well without a loan throughout the game, but maybe we should have gotten one. Who knows?
Website: Doing Business.org
This image shows stock markets today, and how precise and technical everything is.
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