Comparing the Great Depression to the Great Recession

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Comparing the Great Depression to the Great Recession The Great Depression and the Great Recession of the early 21st Century have many things in common. The Great Depression and the Great Recession both experienced good economic times before they crashed. Prior to the Great Depression, (1921-1929) the annual real economic growth was at 4.4 percent. Though less, the annual real economic growth prior to the Great Recession was at 3.2 percent. The banks before both times moved into new business lines. In the 1920s banks increased real estate lending and also increased investment banking. Prior to the Great Recession, (1990s-2000s) banks increased real estate lending and the securitization of mortgages. In both times, they were preceded by the innovations in consumer finances of their times. Prior to the Great Depression, (1920s) installment in consumer credit became more popular this included monthly payments. In the 2000’s prior to the recession, banks increased real estate lending and the securitization of mortgages. Pre Great Depression and the Great Recession they were asset bubbles in both real estate and tech-stock market. During the 1920s there was a surge in the Florida real estate as well as the stock market. The time during the 1990s and 2000s were a little different because of the fact that the tech stock market also took off and that the residential real estate grew. Prior to both times the Federal Reserve was highly thought of. In both the great Depression and the Great Recession the Presidents of those times increased spending to try to get the country out of the impending recession. Both Obama and Roosevelt increased the taxes in their presidency but as shown in the Great Depression high taxes are fol... ... middle of paper ... ...://www.britannica.com/EBchecked/topic/9551/Agricultural-Adjustment-Administration-AAA>. "American President:." Miller Cente. miller cente, n.d. Web. 16 Mar. 2014. . "Economic Analysis of the Car Allowance Rebate System." White House. White House, n.d. Web. 16 Mar. 2014. . "The Federal Housing Administration." Hud.gov. hud.gov, n.d. Web. 16 Mar. 2014. . Geewax, Marilyn. "Economy." NPR. NPR, 11 July 2012. Web. 13 Mar. 2014. . "Home Owners Loan Corporation." Next New Deal. Roosevelt Institute, 2014. Web. 16 Mar. 2014. .
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