Banking Crises 1930

Banking Crises 1930

Z power

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 The Great Depression was the deepest and long-lasting economic downturn in history. It began after the stock market crash, which caused the lost of millions of investors; and eventually led to a higher unemployment rate. The investors and business owners debts increased and their cash deposits decreased. Thus, thousands of Local Banks closed their doors and the Global Banking system crashed. This political cartoon picture from 1930 by Greg Strid represents how different sources stepped in to help the bank crisis, such as the Federal Reserve, The European Central Bank, and The Future Economic Growth. Furtheron, Greg drew a building that is laying in bed sick and is getting aid through intravenous, which are the three sources I mentioned. Additionally, he also drew a mouse hole in the bottom right corner, representing the small local banks that were closed by then. However, the government ended up loaning the Global Bank state money so they would loan it to the bussiness owners in order to invest again and have their employees back. Eventually President Franklin D. Roosevelt came up with The  New Deal plan that aided in recovery from the depression and helped the economy to raise again.                                                                                                                                                                Banking crises image