Explain what happened with the stock market and banks to cause the Great Depression?

The Great Depression was precipitated by the Stock Market crash of 1929, which was driven by speculative investments and overleveraged trading. As stock prices plummeted, confidence eroded, leading to widespread bank failures due to runs on deposits, as many banks had invested heavily in the stock market and lacked sufficient reserves. This created a severe credit crunch and reduced consumer spending, further deepening the economic downturn. The combination of these factors resulted in massive unemployment and a prolonged economic crisis that characterized the Great Depression.