 Many investors lost most or all of their money, leaving numerous unpaid debts

BANK FAILUREBUSINESS FAILURE  People are unable to repay their loans, resulting in a lack of funds for banks  Bank runs – many people at one time come to withdraw money out of a bank, leaving no cash in the bank, and causing it to close  People are not buying products (No income)  Installment Plans are not getting paid

GLOBAL DEPRESSION CREDIT CRISIS  Countries are not buying American products, resulting in job losses  In 1920s, everything was bought on credit.  Farmers and other investors cannot repay their loans to banks

 The rich continue to get richer, and the poorer get poor.  1% owned 1/3 of the nation’s wealth  75% of the nation lived in poverty