1. The Depression Continues

2. Wash, Rinse, Repeat
 Because the Stock
Market crashed,
companies laid people
off.
 This made the surplus
stock grow, because
less Americans could
buy companies’ items.
 More people then went
to the banks to withdraw
all their money.
 More layoffs

3. Runs on the bank
 When people ran to get
to their money out of a
bank, it was called a
“run on the bank.”
 Banks loan money out
using the money put in.
 When people took their
money out suddenly,
many banks had to
close completely.

4. Calling in the loan
 At the same time, in an attempt to recoup
the money they were losing, banks
required people to pay ALL the money
they were loaned or they would lose their
house/car/etc.

5. Continuing the Cycle
 Unemployment and
homelessness
continued to increase,
banks and businesses
closed, and the
economic depression in
the U.S. then intensified
the worldwide
depression.

6. A Change of Direction
 Remember the Depression began in Europe.
 Remember Europe owed America a great deal of
money for loans during and after World War I.
 Germany borrowed more money from the United
States to pay back reperations.

7. Taking these ideas global
 Similar to how banks
were treating
American consumers,
American banks and
businesses that
loaned Europe money
began demanding
their money back.
 Many countries in
Europe (Germany
especially) suffered
even more due to this.

8. The Third World
 Poor nations (Asia,
Africa, and South
America) are often
called the Third
World.
 Countries in the Third
World suffered
because European
and Americans
stopped loaning and
investing in them.

9. Worldwide Depression
 As these investments decreased, the economies
in nations of these other continents began to
suffer, and by the early 1930s the worldwide
depression had begun.