Consequences of the Wall Street Crash
The Wall Street Crash had consequences in the short, medium and longer term. In the days that followed the crash there was a banking crisis. Banks themselves are investors and they suffered as the stockmarket prices spiralled downwards. Many banks closed, lots of them permanently. This led to savers losing money and access to what was left being restricted.
Video Clip: The Wall Street Crash
This video was created to act as an introduction to the Wall Street Crash. It covers the causes, course and consequences of the Crash.
The crash also led to a lack of trust in the system. Investments clearly were not a sure fire way of making money. Banks had lost their credibility as safe places in which to save. Consequently there was a reluctance by many to invest in new enterprises, or to save in banks.
Politically it raised questions about policies in the years leading to the crash. It also led to fierce debate about the best way in which to tackle the economic consequences of the crash. These debates were to dominate the political arena of the United States in the following years.