Wall Street crash

• • October 1939, share prices fell in New York
  • falling shares meant people’s investment fell
  • People rushed to sell shares before it fell further
  • Black Thursday, 13 million shares were sold
  • investors lost $4000 million in a week
• | economic effects on Germany

  • causes banking crisis: German banks were major investors & suffered many losses
  • people rushed to get money out; some banks ran out of cash
  • collapse of German banking: caused general economic collapse because to pay out many demanded by account holders, banks urgently needed cash
  • banks demanded money lent in business in industry & farming which cut back their production