The Great Depression
The Stock Market and the Banks
The Great Depression began in 1929. The economy was going downhill and suddenly people lost their money in the stock market overnight. This was on black Tuesday. People began to get nervous because of the stock market crash and went to the bank to withdraw all of their money. However, when there was a run on the banks, they didn't have enough money stored up to give people their savings. This was because they had given most of the money out in loans so that they could make a profit. The banks later closed down so that the government could intervene, but by then a lot of damage had been done.
Above is a visual of the unemployment during the Great Depression. By 1933, almost 25% of Americans were unemployed.