The Cartoon:
The Cartoon
Our Interpretation:
Our Interpretation Investor-Firm relationship
Problems with information
Instability of stocks
Safety issues and problems with predictability
Relation To Economic Theory:
Relation To Economic Theory Role of government in a market economy?
Creating the rules of the game
Create stability, reduce inequities of information
Implications for the Great Depression:
Implications for the Great Depression Problems with investor confidence
Created an investment trap, which made the depression worse
Government did not play a large role in the economic affairs of the nation