What was hoovers initial reaction to the stock market crash of 1920?

Answer 1

At first President Hoover tried to organize national optimism by summoning business execs to DC to declare that conditions were sound and that there would not be wage cutting. When that did not work (stop the depression), he became inactive for a while, trusting to the idea that it all would self-correct. When that did not work, he organized an international moratorium in war debts and reparations. This actually did help stem the slide further into depression, but only briefly. Then he set up the Reconstruction Finance Corp. to bring federal aid to hard pressed banks and businesses. Just as it seemed that this might work and that recovery was at hand, in the winter of 1932-33 the banking system in America went into a tailspin. On March 4, 1933, the American banking system ground to a complete halt. Hoover was an able and intelligent president who attempted orthodox economic ideas, but became a victim to the collapse of the system.

Answer 2

President Hoover established the President's Emergency Committee for Employment to coordinate efforts of local welfare agencies. No need to fear, ChaCha's here!

Answer 3

Hoover lost the election in 1932 letting Dem. Franklin D. Roosevelt get into office and giving the Democrats a super majority in the Senate allowing them to pass any law they wanted. They used this power to pass the New Deal which eventually led to an increase in trust in the system even though it was still broken. Eventually the Democrats entered into WWII allowing for Keynesian deficit spending.

Answer 4

He tried to ignore it, expecting it would recover best on its own without government interference.

Answer 5

he was enthusiastic that it would be okay

Answer 6

come on now no body gives two poops.

Answer 7

He wanted more hoes