Businesses faced bankruptcy from "summary" of The Great Crash 1929 by John Kenneth Galbraith
The most devastating consequence of the stock market crash of 1929 was the wave of bankruptcies that swept through the business world. Countless companies, large and small, were unable to weather the storm of financial ruin that followed in the wake of the crash. As stock prices plummeted and investors saw their fortunes evaporate, businesses found themselves unable to raise the capital they needed to stay afloat. Banks that had once been willing to extend credit now tightened their purse strings, unwilling to risk their own financial stability on companies that seemed on the brink of collapse. With revenues sharply declining and debts mounting, many businesses were forced to declare bankruptcy. Companies that had been household names for decades suddenly found themselves facing liquidation, their assets sold off to pay off creditors. The impact of these bankruptcies rippled through ...
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