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Now, let's take a trip back in time to understand how the **FDIC** came to be. The **FDIC** wasn't always around; it was created in 1933 in response to the Great Depression. The 1920s saw a period of economic prosperity, but that all came crashing down with the stock market crash of 1929. The ensuing economic downturn led to widespread bank failures. People were losing their savings, and the financial system was on the verge of collapse. Bank runs became commonplace as depositors, fearing their money was at risk, rushed to withdraw their funds. This exacerbated the crisis, leading to even more bank failures and further economic hardship. It was a vicious cycle!
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