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.
