USA HISTORY

Detailed explanation-1: -Question: What did the Great Depression and the Great Recession have in common? Answer: Huge economic slumps accompanied both. Also, the diagnoses and prescriptions were the same. Both catastrophes were laid at the feet of market failure (read: the capitalist system is inherently flawed and prone to failure).

Detailed explanation-2: -During the Great Depression, unemployment spiked to 25%, and the country’s output plummeted by nearly 50%. At its peak, the unemployment rate never climbed above 10% during the Great Recession. That was the highest rate since the early 1980s, but nearly as bad as the 1930s.

Detailed explanation-3: -The Panic of 1907 had many elements in common with the financial crisis of 2007-09. Both crises started among New York City financial institutions and markets, and both affected the economy of the United States and the rest of the world. Examining the sequence of events in 1907 makes the parallels clear.

Detailed explanation-4: -Deregulation in the financial industry was the primary cause of the 2008 financial crash. It allowed speculation on derivatives backed by cheap, wantonly-issued mortgages, available to even those with questionable creditworthiness.