The great depression
Storyboard Text
- Federal reserve
- Interest rates goes down
- Time to borrow money while it's cheap
- Interest rates goes up
- That's going to be too much money to pay back
- This could be a major problem. The federal Reserve has to do something about this.
- The Federal Reserve system was established in 1913 and became the nation's central bank. One thing it did was control the interest rates
- We have told the banks to stop lending people so much money for the stock market. Everything will be okay.
- Will it....?
- when the interest rates increase, banks borrowed less money because they would have to pay more back. when interest rates decrease, banks borrow more because it is easier to pay back.
- Thank you kind sir ill get that back as soon as possible
- Here's your money. Pay it back by the end of the month.
- How much longer can we do this for?
- in the late 1920s, stocks were costing more than they were worth.
- i knew something like this was going to happen .The federal Reserve Should have done more
- hey, i can't pay back that loan i had because i spent it on stocks
- You're not the only one. Pay it back when you can.
- The federal reserve ended up just telling the banks to stop lending people money to spend on stocks.
- There was no punishment if banks didn't stop lending money to people so they continued to do it.
- when the stock market crashed, people couldn't pay back the loans they had and many suffered from a lot of debt.
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