Great Depression 1930’s…Repeated

On “Black Thursday,” October 24, 1929, U.S. stock market lost nearly fourth of their value in four days.  This triggering event eventually helped lead the U.S. into the worst economic downturn in history known as the Great Depression.  During the 10 years following the market crash, unemployment average in the U.S. was 25% while some cities had over 50% unemployment rates.  Most of the major industries participated in the crash including the railroads, cotton, wheat, beef, coal, and financial institutions became insolvent by the thousands in less than a year.  Although the causes of the Great Depression of the 1930’s were combination of oversupply of agriculture products, inflated stock market, unrealistic growth expectations, risky investments by banks in the stock market, excessive use of credit, and failed business ventures, what is even more shocking is the repeat of the depression in 2009 as a result of similar causes.  Although the major driver of the market crash of 2009 was the financial meltdown tied to real estate and housing bust, all the other symptoms are virtually the same.  Over extension of credit, risky investment ventures by banks and American citizens, inflated stock market, oversupply of goods and services, and failed business ventures.  As FDR and the U.S. government assisted in massive bailouts to help recover the economy in the 1930s, same in 2009 by George W. Bush and the government bailout of the auto, financial, and mortgage industry.  If past history can be a gauge for future history, why should one be convinced the country has learned from the lessons of the past, twice…and likely on track to repeat the depression cycle again in the future.

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