Is the Current Economic Meltdown comparable to the Great Depression?
Though it kind of feels the same…
- In both time periods banks closed, recovery seemed long and painful, and the general country’s mood was negative about the future .
- During both crises the banking system was crippled by bad loans due to stock speculation.
- During both crises banks loaned significantly less money, which slowed the economy even further.
…this is just a teaspoon of hurt compared to the tsunami of financial pain caused by the depression.
- During the Great Depression unemployment in the U.S. rose to 25%, whereas the current unemployment rate is only 10.4%
- Because deposits weren’t insured during the great depression millions of Americans watched their deposits literally dissapear.
- During our meltdown the DOW lost about 42% from it’s Oct 9th in 2007 to Oct 27, 2008. But during the years coming after the Great Depression, the DOW had fallen 89%.
- The word “depression” became so terrifying that economists have ever since stopped using it to describe economic downturns, they’ve been called recessions.
- Perhaps the greatest difference is between the crisis of today and the great depression is how quickly the government and banks have acted to try to stop the me
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