For first, Paqui has reminded us the schemes we had to copy in last class, and after we've copied this from the blackboard:
Wall Street Crash of 1929
24th October (Black Thursday): -11%
25th October : -6.4%
28th October (Black Monday) : -13%
29th October (Black Tuesday) : -12%
-42.4% of its value
In four days only.
For second, we've continued the class checking the exercises. Silvia has checked the first exercise, which was about how the crisis of 1929 spread to Europe:
The public evidence of the crisis came on the 24th October 1929, when the price of stocks in Wall Street fell down. The stockholders panicked and tried to sell their stocks massively. Prices shrunk, many investors got ruined and they couldn't give their loans back. Bnacks crashed down and economy collapsed. When the USA banks asked the European banks for the money they had lent them before, the crisis spread to Europe and the Great Depression became a world problem.
Paqui has explained this in the blackboard and we've seen how Herbert Hoover intevened:
- At the beginning, no reaction following the liberal orthodoxy (no intervention of the State in economy).
- Later there was a deflation (tried to keep prices and salaries low).
- And protectionism: increased tariffs to protect industry.
After that we've started checking exercise 5, which was about the different decisions made to reduce the impact of the Great Depression. We've started checking it, but we haven't could finish it because the bell has rung:
F.D. Roosevelt won them in 1932 with a program called New Deal and when his government started ruling in March 1933 the Congress and the President issued a lot of laws (Alphabet Laws) in order to recover economy.
Vocabulary:
Foreclosure- Embargo
To foreclose- Embargar
N.Y. Stock Exchange Market- Crack de la Bolsa de N.York
To panick- Entrar en pánico/Aterrorizarse
To warn- Advertir
Risk bonus- Prima de riesgo
Good journal Sara, but I have seen some mistakes like the following:
ReplyDeleteBanks crashed.
Hoover intervened; you can add who was Hoover
F.D Roosevelt won the elections….
You can write the meaning of deal= trato.
You can say that we have to finish for homework the exercise five, adding the decisions made.
Hello Sara,
ReplyDeleteThese are my corrections:
- the 2nd of Bachillerato students were not there
- You can´t say " for first, for second". You can say "firstly, secondly" or only "first, second" or you can also use "afterwards", "after this"...
- "On" the blackboard. If you say "in", it means "inside the blackboard"
- I´ve made a mistake with the expression "risk premium". I´ve said "risk prime", but the correct way of writing it is "risk premium". You´ve written "risk bonus". Please, cange this
You could also add the comparisons we´ve done between the 1929 crisis and the subsequent Great Depression and the current one. YIf you have a look on the presentation, maybe you will remember more things about the lesson.
Rebeca´s corrections are O.K. Please, correct the mistakes soon. Have a nice Castilla-La Mancha Day.
Hello everyone!
ReplyDeleteGood journal Sara! It is really complete but we have been speaking about the risk prime, Alejandro has explained what it is and Paqui has said that now the risk prime in Spain is really really high. She has said that it has 512 points but yesterday I saw in the news that it has increased and now it has 519 points. We are in a serious problem, because Portugal and Greece were resqued having a lower risk prime.
Well that's all.
Bye bye, see you tomorrow!
Hi Yolanda,
ReplyDeleteYou can read the post I wrote about the risk premium. It explains the present situation and what could happen in some days. The Eurozone rulers (Germany)are waiting for the results of the new elections in Greece on the 17th June. They will have to decide very soon. In the meanwhile, the Spanish government will try to avoid selling more bonds for some weeks, in order to cool the risk premium. Anyway, I think these alarming news we are constantly listening to are exagerated, but they create a suitable climate for future sacrifices. We should look around and analyze if things are as bad as they are telling us or they are thelling us these awful things to make us accept unacceptable things. Think about it ;)