The day the US stock market crashed – level 1
After World War I, some European countries have money problems. Inflation is very high in Germany. People pay 3 billion marks for bread.
However, for America, the 1920s are very happy years. Factories make more things. People have more money. There are a lot of nice things on the market. People think that these happy times are here forever.
In New York, the prices of stocks are going up and up. More and more people are interested in stocks. However, these people are not businessmen. They are normal people. They buy something what they don’t understand.
These people also don’t have a lot of money. They borrow money from the banks. These people buy stocks. They want to sell them later when the price is higher. Many people do this. The prices of stocks go up and up.
Then October 24, 1929 comes. It is a day which people later call Black Thursday. On that day, a lot of people want to sell their stocks. However, there is nobody who wants to buy them.
Prices start to go down. The market collapses. A lot of people lose all their money.
Many banks and companies close. Many Americans lose their homes. They are without work.
Difficult words: inflation (when things cost more), forever (for all future time), stock (a piece paper which is a part of a company), borrow (when somebody lends you money and you must pay it back), call (give a name), collapse (fall apart).
What impact did the stock market crash of 1929 have on the world economy?
LEARN 3000 WORDS with DAYS IN LEVELS
Days in Levels is designed to teach you 3000 words in English. Please follow the instructions
How to improve your English with Days in Levels:
- Do the test at Test Languages.
- Go to your level. Go to Level 1 if you know 1-1000 words. Go to Level 2 if you know 1000-2000 words. Go to Level 3 if you know 2000-3000 words.
- Read two new articles article at Days in Levels every day.
- Read one previous article too and check if you remember all new words.
- Listen to the new article and read the text at the same time.
- Listen to the new article without reading the text.
- Answer the question under the new article and write your answer in the comments.
- Choose one person from the Skype section.
- Talk with this person. You can answer questions from Speak in Levels.