What was the effect of bank runs & bankruptcy after the Stock Market Crash of 1929? The banks' customers could not repay their loans.

People sold off bank stocks, making them worthless.

People stopped taking out loans because they were bankrupt.

The Federal Reserve Board reduced how much money it gave banks to loan.

People sold off bank stocks, making them worthless.

Explanation:

The Stock Market Crash of 1929 caused a series of bank runs which destroyed the people's trust in the banking system. It began as a rumor that the banks were unable to pay cash which then transcended to panic among customers causing them to withdraw their funds en masse. They also spent little thus causing a stagnant economy. People withdrew their cash from the banks thus causing the solvency of many banks.

Banks in turn liquidated their loans and sold their assets at very low costs.

supplies had to travel a long distance across water on ships that were often attacked, so they did not reach europe

in the united states, the president is controlled by the

constitution, and in all respects subordinate to it. insofar

as it deals with presidential power, however, the american

constitution has proved to be a highly malleable document.

with very few exceptions,' the constitutional provisions relating to the president have not been changed at all since

they were ratified in 1787. but in the late twentieth century, those provisions do not mean what they meant in

1787. the constitution is a legal document, and it is enforced judicially; but its meaning was hardly fixed when it

was ratified. in particular, the contemporary president has

far broader powers than the original constitution contemplated. it is remarkable but true that large-scale changes in

the authority of the president have been brought about

without changes in the constitutional text, but nevertheless

without significant illegality.

this is a paradox. is it not clear that constitutional

changes, if not textual, are illegal? the paradox has considerable relevance to our current thinking about the presidency in particular and about constitutionalism in general.

perhaps the framers of the american constitution feared

legislative power most of all; 2 but from well-known events

in the twentieth century, it is possible to conclude that it is

presidential power that holds out the greatest risks to both

liberty and democracy. the president is by far the most visible leader in the nation; he is often the only person in government with a national constituency. moreover, he is