The day the US stock market crashed – level 2
After World War I, European countries were in big debts. Hyperinflation was very high in Germany. People paid 3 billion marks for bread. Yet for America, the 1920s were a golden age. Many things were being made, and salaries were going up, too. There were a lot of luxury things on the market.
There was no indication that these good times could end. Also buying and selling stocks became very popular. Stock prices were still going up and many people who didn’t understand stocks started to buy them.
These people also didn’t have enough cash for buying stocks, so they borrowed money from banks and big businessmen. They believed that the stocks would go up in value, and they could sell them later and make a lot of money.
Then October 24, 1929 came. It was a day which people later called Black Thursday. On that day, a lot of people decided to sell their stocks. Yet there was no one who wanted to buy them. Prices began to go down. The market fell apart as a lot of people lost all their money and still owed the banks.
Many small investors, banks, and companies went bankrupt. Hundreds of thousands of Americans found themselves homeless and without work.
Difficult words: debt (money which you must pay to somebody), hyperinflation (when the cost of things goes up very high), stock (a piece of paper which is a part of a company), borrow (when somebody lends you money), call (give a name), owe (have a debt), go bankrupt (lose all your money in a business).
What do you think about this day?
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.