Banks
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Bank Run

The erosion of confidence in the banking system
bank closures:
Farmers suffered-> small towns suffered-> financial centers suffered-> banks suffered

The banking system took a fall when people started taking loans out on stocks. The stock market took a crash and the people who took out the loans couldnt afford to pay the banks back. Thus forcing banks to foreclose on lands and the banks to fail.

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QUOTE:
"The bank--the monster has to have profits all the time. It can't wait. It'll die. No, taxes go on. When the monster stops growing, it dies. It can't stay one size."

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The FDIC

Issues with banking during the great depression called for new plans. Many people lost all of their money due to the fall of banks.

What is it?
The FDI is a Corporation created to help keep your money safe in case of bank failures. It insures your money up to 100,000 dollars.


How it pays you back
The FDIC pays your money back in two ways:

*Sends you a check
*Another bank takes over your account



Bank Failures. Bill Ganzel. 2003. 11 March 2009. http://www.livinghistoryfarm.org/farminginthe30s/money_08.html.

Bank Run. 11 March 2009. http://www-stat.wharton.upenn.edu/~steele/courses/434/434indes.html.

Steinbeck, John. The Grapes of Wrath. New York: Penquin. 1976.

What is the FDIC? Your money may not be safe in your bank. 2009. 11 March 2009. http://www.finacephysician.com/2007/09/08/what-is-the-fdic-your-money-may-not-be-safe-in-your-bank/.