Charles Ponzi - Confidence Trickster
- 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
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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
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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
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- Owned the giant company Chrysler Steel
- Loaned money to brokers in order to carry on speculation
- Carried out "easy credit" avaliability
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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
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- Popularised the stock market
- Failed to report weaknesses and faults in the stock market
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- 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
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- Issued liberty/honour bonds which made loaning easier and increase
- The easier it was to loan, the more people got into the stock market
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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
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Charles E Mitchell
- Threatened to give money to the banks if credit was tightened by the Federal Reserve Board
- This allowed spending to carry on at a mass rate
- Undermined authority
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