Throughout the 1930s, more than 9000 banks failed. As banks failed, individuals lost their savings because banks deposits were not insured. Surviving banks stopped their willingness to create loans because they were not sure about the economic situation but more concerned with their survival. This even exacerbated the situation thus resulting in less and fewer expenditures causing the depression. The stock market crash, as well as bank failures, decreased the spending power of the stockholders who lost money. The stock market crash on Black Tuesday wiped out many investments of individuals and understandably shook the public. And when the failure of the banks erased the savings of individuals who did not invest in the stock market, people were
Throughout the 1930s, more than 9000 banks failed. As banks failed, individuals lost their savings because banks deposits were not insured. Surviving banks stopped their willingness to create loans because they were not sure about the economic situation but more concerned with their survival. This even exacerbated the situation thus resulting in less and fewer expenditures causing the depression. The stock market crash, as well as bank failures, decreased the spending power of the stockholders who lost money. The stock market crash on Black Tuesday wiped out many investments of individuals and understandably shook the public. And when the failure of the banks erased the savings of individuals who did not invest in the stock market, people were