The massive unemployment was a result of the bank runs, not a cause. The bank failures caused the economy to seize up and people to hoard money, leading to a ma

The massive unemployment was a result of the bank runs, not a cause. The bank failures caused the economy to seize up and people to hoard money, leading to a massive wave of foreclosures and business closings, leading to massive unemployment. It wasn't until FDR declared a bank holiday and brought the FDIC up that people were confident enough in their savings to put money back into banks.