During the last week of October, prices tumbled (Ryan 131-132). After October 29, 1929, prices continued to fall as the United States entered the Great Depression. When the market crashed, new investors lost all their money. When brokers made margin calls, they were forced to sell their businesses, cash in their life insurances, and ask banks to loan them even more money. Many people had predicted the crash, so they withdrew all their money in hopes of saving the money they had left; however since the banks had no restrictions and a limited amount of cash in their vaults, these banks soon went bankrupt. This caused people with no association with the stock market to also lose their money
During the last week of October, prices tumbled (Ryan 131-132). After October 29, 1929, prices continued to fall as the United States entered the Great Depression. When the market crashed, new investors lost all their money. When brokers made margin calls, they were forced to sell their businesses, cash in their life insurances, and ask banks to loan them even more money. Many people had predicted the crash, so they withdrew all their money in hopes of saving the money they had left; however since the banks had no restrictions and a limited amount of cash in their vaults, these banks soon went bankrupt. This caused people with no association with the stock market to also lose their money