Bank Runs

Occurs when a large number of depositors, simultaneously try to withdraw their funds If bank runs out of capital, it becomes insolvent and eventually bankrupt If banks are highly leveraged, their position becomes even more precarious Prime example of self-fulfilling prophecy (positive feedback loop) Sometimes started by pure, insubstantial rumour

During the Depression

Mass bank runs caused the failure of 11000 banks from 1929-1933 City-wide epidemics Indicators of the systemic failure of banks One of the things that led to the establishment of the lender of last resort. i.e. The Fed One of the many iconic images of the Depression Its A Wonderful Life

Possible Mitigation
Have a large lobby and fast service Recruit employees relatives to stand in line and delay bank run Capital Adequacy Depositor Insurance Lender of Last Resort; Capital infusions Declaring an emergency bank holiday Diamond-Dybvig Model

The Dust Bowl

Caused by a combination of severe drought, high intensity windstorms and poor farming practices Uprooting, burning and ploughing away native grasses for cash crops Use of combine harvesters on the prairies Monoculture

Cultural Impact
Literature: To Kill A Mockingbird, Gone with the Wind Movies: Its A Wonderful Life, Mary Poppins Music: Louis Armstrong, Jazz, Blues, Swing Okies Cartoons Photography Agricultural Sciences