In 1919 his cpaital resources amounted to $150. In the early 1920's his comapny Old Colony Foreign Exchange made an astonishing offer in a Boston paper.
For every $10 invested in the firm for 90 days it guaranteed a 50% return.
By July the company was receiving $1 million per week
Reporters investigated but couldn't find any investments.
In August the court closed the company and Ponzi was sent to prison.
His investors lost everything.
Ponzi encouraged the "get rich quick" attitude
1 of 10
Investment Bankers & Stockbrokers
"Inside trading" manipulated the stock market and easily exploited vulnerable people.
Borrowed money from the banks to diss out loans to anyone who wanted them, making thousands of people owing money.
Demanded all their money back at one time leaving people desperate
2 of 10
William Durant of General Motors
Gave the impression of great market interest due to artifical inflation and inside trading.
Operated the farmers bull market
Often left people with depreciated stock
Took advantage of peoples naivety
3 of 10
Walter Chrysler
Owned the giant company Chrysler Steel
Loaned money to brokers in order to carry on speculation
Carried out "easy credit" avaliability
4 of 10
Franklin D Roosevelt
Blamed for not being one of the "warning voices of the devils of the stock market"
Failed to take any responsibility to regulate Wall Street
Particulary blamed by Hoover
5 of 10
Popular Press
Popularised the stock market
Failed to report weaknesses and faults in the stock market
6 of 10
Ordinary Americans
Naive and didnt fully understand the nature of the stock market.
Often were "in too deep"
"Easy credit" made borrowing more avaliable
People have a tendency to panic
7 of 10
Woodrow Wilson
Issued liberty/honour bonds which made loaning easier and increase
The easier it was to loan, the more people got into the stock market
8 of 10
Andrew Mellon - Republican Governor
"Laissez Faire" attitude
Government failed to regulate and check the stock market leading to many improper practices
Controversial policies
Failed to oversee a crash and prevent it
9 of 10
Charles E Mitchell
Threatened to give money to the banks if credit was tightened by the Federal Reserve Board
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