People crying, people screaming, dark clouds, thunder rolling, this all started when the banks had been shut down in the late 1920s to the early 1930s. This took place in Nashville, Tennessee, New York City and Gresham, Nebraska . The bank failures happened for many reasons. Above all, the banks had gone out of business. One of the main reasons was because most of the banks had invested in stocks. When the stocks became useless the banks lost a lot of their money. This started before the stock market crashed. People stopped buying the stocks because they were useless. The banks had also loaned out too much money. It got to the point that the banks didn’t have the money they needed to be able to keep loaning money. This conflict …show more content…
The banks were not able to pay their debts. People with money in the bank never got their money back after the banks had shut down. This is when everyone became unhappy and angry with the banks. These people had been happy and proud of themselves that they had saved money in the bank. I believe, the bank selling the stocks caused them to lose most of their money because stocks became worthless. In the end, the people were mad, sad and disappointed. Lastly, this conflict was also caused because some banks closed due to being placed into receivership. Receivership is a form of bankruptcy where a court-appointed person or organization reorganizes the bankrupt business. “ The Depression, which started in 1929 was rather mild from 1929 to 1930. And indeed in my opinion would have been over in 1931 at the latest had it not been that the Federal Reserve followed a policy, lead to bank failures.” (Milton Friedman) Therefore, I think that this conflict could have been avoided. The bank should not have loaned out so much money and should of had a limit of how much money they will loan for specific things. Also, one of the biggest reasons of the bank failures, was that the banks were selling stocks that eventually became worthless. These causes are geographic, political, economic, cultural and