Throughout the 1930’s, 9,000 banks failed. This means that any bank that overstretched itself through loans could declare bankruptcy. Any person with funds in that bank would simply lose their entire life savings. Also, people stopped investing their money in banks, and banks stopped offering loans creating a series of continued problems. A final cause came because of this lack of personal and commercial investment. Whether because of a loss of personal finances or a lack of commercial options, people stopped buying things. Without money to buy things the market continued its downward spiral, bringing banks and personal finances with it. This lack of personal spending perpetuated the problem of dwindling market values. In the end the causes of the Great Depression were byproducts of each other. Starting with problems of an overextended market that crashed and died quickly over a few months, the spiral began. From there the failure of banks coupled with a lack of purchasing destroyed exchanging finances. Thus the United States created and endured the greatest financial disaster of the
Throughout the 1930’s, 9,000 banks failed. This means that any bank that overstretched itself through loans could declare bankruptcy. Any person with funds in that bank would simply lose their entire life savings. Also, people stopped investing their money in banks, and banks stopped offering loans creating a series of continued problems. A final cause came because of this lack of personal and commercial investment. Whether because of a loss of personal finances or a lack of commercial options, people stopped buying things. Without money to buy things the market continued its downward spiral, bringing banks and personal finances with it. This lack of personal spending perpetuated the problem of dwindling market values. In the end the causes of the Great Depression were byproducts of each other. Starting with problems of an overextended market that crashed and died quickly over a few months, the spiral began. From there the failure of banks coupled with a lack of purchasing destroyed exchanging finances. Thus the United States created and endured the greatest financial disaster of the