Banks were collapsing, families lost their savings in the crash, banks had a little bit of cash left reserve. Banks lost their money loan to buy on the margin. People defaulted on their mortgages because of their unemployment. By 1932, 1 and 4 of the banks had been closed like 6,000 banks.
In the United States, the Great Depression began soon after the stock market crash of October 1929, which sent Wall Street into a panic and wiped out millions of investors.The term was first coined in the United States to describe the economic collapse that, by 1931, had shattered the US economy and Americans’ faith in the future.