Today, in class, we talked about our blogs!! yayy.
Someone talked about how the banks collapsed after the stock market crashed. The Federal Reserve Bank was created to help prevent banks from closing down, but it failed miserably. Banks would turn to it to borrow money in emergency situations. Over 9,000 banks failed in the 1930's, due to giving out loans and never getting paid back, along with investing it in the stock market, which crashed, losing all the banks' money.
The vicious cycle of the stock market crash:
People don't spend money -> Businesses don't make money ->Businesses close down or lay off people->People don't have money to spend->Businesses don't make money. etc.
I didn't get to talk about the dustbowl :(, which was a region in the US where dust storms would form, stealing100 million acres of topsoil, right from under our nose!
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