The Great Depression
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Honey, I am going to invest some money in stocks. It's a really strong bull market, so I will make us money!
Try not to borrow too much money!
I want a loan for $4,000 so I can buy $5,000 worth of stocks on margin.
No worries! I'm going to make so much money, sir.
You will have to pay back the loan with interest!
Haven't you heard? The stock market collapsed today!
I need to go get our money before the bank closes!
Before the stock market crash, many people were investing large sums of money in the rising market.
I need to close my savings account right now.
I can't let you do that. I'm making a margin call and you need to pay back your loan first.
To buy large amounts of stocks, many people took out loans from the bank and created installment plans to pay back the loans with interest.
I'm sorry to have to do this, but with the bear market, there is no demand. I have to let you go.
The day of the stock market crash, everyone rushed to the bank hoping to get as much of their savings as they could.
Were you able to find any food today begging? I'm so hungry.
I couldn't. Everyone is suffering. We have to get help from the government.
The banks had little money left and made a margin call, demanding their money back.
Along with stock market crash, the economy crashed. Consumers had little money and ultimately there was no demand and many factories let their workers go.
Many families starved and their only source of income and food during these few years were begging on the streets.
Over 15 Million
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