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Why Is Al Capone Called The Stock Market A Racket

733 Words3 Pages

Chelsea Pearce
AMH 2020
Mr. C
September 29, 2014
Ch. 20: From Business Culture to Great Depression
2. Al Capone called the stock market “a racket.” What does he mean by this? Give a specific example of how he was correct. Al Capone was a bootleg business man in the 1920’s; but even he thought the stock market guys were too crooked. When talking about the stock market he says it’s “a racket,” “those stock market guys are crooked.” Capone knew that the stock market men were colluding together. When he said the stock market was a racket he was referring to the fact that it was like an organized crime; one that even Capone felt was too crooked for him. Most people knew that the men would work together to get as much money possible, but what kept them coming back was the idea that they might make it. The possibility of beating the system was a huge …show more content…

The Government felt that it shouldn’t have to interfere with the regulation of the stock market. The economy wasn’t a priority for the government back then like it is now. They didn’t take responsibility for it. When the people asked for the government for regulation of the stock market the government had no comment, this made the people worry. The presidents of the 1920s also had little concern over the stock market. They felt that it was their responsibility to promote happiness rather than concern over the crookedness of the stock market. President Coolidge would only comment on “how wonderful times were, how happy everyone was going to be, and how prosperous everyone was going to be.” President Hooper was “responsible to continue to promote this optimism.” The Federal Reserve board wasn’t as “optimistic” about the stock market. They “distrusted the boom.” They didn’t like that the base of the stock market was borrowed money. They felt that is was “reckless and dangerous.” The Federal Reserve had later gained the power to create new

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