It was also a double loss in that though the clients lost their money, the banks were forced to close down.
This is because they directly depended on the stock market.
The stock market that had for long been viewed as a path to wealth and richness was now a sure path to bankruptcy (Martin 106).
Economic impact of the Great Depression Failure of the stock market.
After almost a decade of prosperity and optimism, the US was now exposed to a period of despair.
The day when this happened is referred to as Black Tuesday, and it is the day when the stock market crashed.
They created a situation that was referred to as the Dust Bowl.
The farmers were used to overgrazing, and now this had to combine with the effects of drought leading to a blow to the farmers.
Most of the farmers were situated at the Great Plains before the Great Depression took place.
The territory was affected so badly by drought and dust storms which were horrendous in nature.
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