The Great Depression, to 1935, U.S. Economy Hits Bottom,Pt2

Great Depression Part 2 

In the wake of the stock market crash of October 1929, people were growing increasingly anxious about the security of their money. Wealthy people were pulling their investment assets out of the economy, and consumers overall were spending less and less money. Bankruptcies were becoming more common, and peoples' confidence in financial institutions such as banks was being rapidly eroded. Some 650 banks failed in 1929; the number would rise to more than 1,300 the following year. The first of four separate banking panics began in the fall of 1930, when a bank run in Nashville, Tennessee, kicked off a wave of similar incidents throughout the Southeast.