The+Great+Depression+Begins-RN

= = The Election of 1928 - Calvin Coolidge choose not to run in the election of 1928 so the Repbulicans nominated his secretary, Herbert Hoover. The Democrats chose Alfred E. Smith who was a four time governor of New York. Smith's beliefs became an issue because some people claimed that the Catholic Church finnanced the Democratic Party and would rule the U.S if he won. Hoover ended up beating Smith by more than 6 million votes and won the Electoral College votes by a landslide. On March 4th, 1929, Hoover was inaugurated.

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The Stock Market Soars and Crashes
-Stock markets experienced a long period of rising stock prices, or a bull market. This convinced many people to invest. Investors began buying margins, making only small cash down payments. To protect this loan, a broker could issue a margin call, demanding the investor to repay the loan at once. Buyers engaged in speculation. The Bull Market lasted only as long as investors continued putting new money in. By 1929, the market was running out of new costumers. In September, prices slipped and fell further. On Monday, October 21, 1929 the stock market plunged. Banks began to close and bank runs occured. The federal reserve board failed to raise interest rates. This helped the great depression.