Stock Markets Exposed

Back in the depression in 1929 0r 1930 when the stock market crashed.did people lose there money in the?

bank to ???or was the money worth anything????and today if the stock market crashed would the money in the bank be worth anything???i guess this is a 2 part question

Public Comments

1. Not everyone with $$$ in the stock market in 1929-1931 lost everything...In fact many got out in time...The run on banks was what made things really bad as they simply didn't have the capital to cover the requests for withdrawals. Watch the movie "It's a Wounderful Life" as it pretty much illustrates what happened. Wall Street's failure didn't cause the banks to go under...FEAR motivated more FEAR and that prompted a perception of the need for LIQUID cash not stocks...Many that had a brain and few bucks left jumped back into the market immediately and were paid off handsomely as a result of not reacting out of FEAR. PEACE!
2. Those who were not diverse enough in their investments lost everything. Banks were not insured at that time in history so when banks closed or went out of business the money that was deposited was lost. today money deposited in the bank is insured up to 100 K I think so if the banks failed as long as the federal government has not failed financially we'll be okay. After that it is at risk.
3. After 1929, the banks loaned out the depositors' money as they do now. A lot of loans weren't repaid, so the banks had no money left to repay depositors. The cushion is the bank's capital, but the loan losses were so bad that the capital got wiped out quickly. There was no deposit insurance, so the bank went bankrupt and you never got your deposit back. The dollars were worth a lot, if you had them. If the market crashed today, money in the bank would still be there. There is deposit insurance for all but the biggest depositors. Also, the banks wouldn't lose as much because they are not allowed to loan out 90% of a stock's price today, like they were in the 1920s.
4. you bet ye they did
5. Your money in the bank is probably safe now. But the value of that money is not safe. Inflation and devaluation can make your money worthless. And with the current low interest rates, you are actually loosing the value of your money through inflation of prices, when you keep your money in the bank. You'll still have the money all right, when this is all over. But you won't be able to buy much with that money. Because the prices for everything will be a lot higher than before.