- With the fall of prices and prospect of depression, US banks also slashed domestic lending.
- Farmers could not sell their production, households were ruined and businesses collapsed.
- With falling incomes, many households could not repay what they had borrowed and were forced to give up their homes, cars and other durable items.
- Ultimately, the US banking system collapsed. Unable to recover investments, collect loans and repay depositors, thousands of banks went bankrupt and were forced to close.