Final answer:
The market collapse led to a banking crisis, corporate downturns, and a faltering global economy. It catalyzed massive unemployment, reduced consumer spending, and public resentment towards financial bailouts. The situation also accelerated the rise of new business models, such as Amazon's impact on the book industry.
Step-by-step explanation:
The collapse of the market had profound effects on the world of business and the global economy. The initial impact was seen in the banking and financial sectors, where the evaporation of asset value led to a collapse in lending due to debts. This resulted in companies reducing production and laying off workers, further deepening the economic downturn. Rural banks, affected by the depreciation of foreclosed farms, started failing, causing a ripple effect of financial instability. The situation was exacerbated by bank runs and the interconnectivity of smaller banks to larger ones.
Corporations in struggling industries such as auto manufacturing faced collapse without federal bailouts, and consumers became hesitant to spend or invest, which affected stock markets like the Dow Jones. Consumer confidence and credit markets were also shaken, preventing economic recovery and leading to massive unemployment and reduced consumer spending. In the international realm, foreign investors withdrew their capital, leading to currency crashes and banking sector bankruptcies in various countries. This crippled credit and lending systems, causing a collapse in aggregate demand and a deep recession.
As credit became scarce, consumer spending declined, and international trade slowed, exacerbating the crisis known as the Great Recession of 2008. This crisis resulted in job losses and public resentment towards the expensive federal bailout of banks. On the industry level, companies like Amazon.com revolutionized the book market, overshadowing traditional retail bookstores and leading to the closure of businesses like Borders and declining fortunes for Barnes & Noble.