However, since people had been using loans as a way to invest in the stock market, this created a vicious cycle where people began selling off their stocks to pay off their loans. As a result, stock prices continued to fall, and the situation took a turn for the worst after the American public discovered that banks were beginning to no longer be able to back their deposits. Many Americans grew panicked and worried, and rushed to their banks to withdraw their deposits as fast as possible. As deposits were withdrawn from banks at a fast rate and stocks continued to fall, banks began to have no money to return to depositors, which caused the banks to fail and
However, since people had been using loans as a way to invest in the stock market, this created a vicious cycle where people began selling off their stocks to pay off their loans. As a result, stock prices continued to fall, and the situation took a turn for the worst after the American public discovered that banks were beginning to no longer be able to back their deposits. Many Americans grew panicked and worried, and rushed to their banks to withdraw their deposits as fast as possible. As deposits were withdrawn from banks at a fast rate and stocks continued to fall, banks began to have no money to return to depositors, which caused the banks to fail and