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Institution that caused [the great depression]. The Federal Reserve loaned out extra lines of credit to lower banks and those banks loaned out the [extra credit] to the people. In Capitalism there wouldn't be extra money given to banks to loan out. The banks would restrict credit and the business cycle would stablize itself. When the economy turned bad starting in the mid 1920s people couldn't pay back all of their credit, banks lost money and failed, and [the Great Depression] started.
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