The stock market is a huge part of the world economy. It reflects the way businesses are doing and it affects almost every American household. When the market is up people are happy, when the market is down people are sad. In 1929 when the stock market crashed the Great Depression had been set in motion. When a disaster such as a stock market crash happens, it causes people to wonder, what happened and how can America prevent another crash from happening? In the year 2000 Kristen Brennan wrote a book about the 1929 crash and the Great Depression, she also talks about how to prevent another crash and references the causes of the first crash. It is rather ironic that the book by Kristen Brennan had been written eight years before the next major
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What caused the crash of the 2008? There are many similarities and differences between the crash of 1929 and the crash of 2008, some similarities make Americans think, why did we let this happen to us, again? The failure of the banking system in the years leading up to 1929, contributed to the crash of 1929 we well as the Great Depression. Consumers were putting purchases on credit and the bank did not receive the money back that they were owed. Banks were down 50% (Brennan). Bank failure was one of the main causes of the stock market crash of 1929. “We find that the credit boom view provides a useful perspective on both the boom of the 1920s and the subsequent slump. In particular, it directs attention to the role played by the structure of the financial sector and the interaction of finance and innovation” …show more content…
A large portion of the American population was hurt financially by the crash of 2008. Parents or grandparents today may be able to tell stories about how the crash of 1929 affected their family. Regardless of direct experience or secondhand knowledge, the economy affects all people all over the world. People today need to educate themselves on what happened in the two major crashes in American history so that they do not let something lie that happen again. “Does history repeat itself, the first time as tragedy, the second time as farce? No that’s too grand, too considered a process. History is just burps, and we tasted again that raw onion sandwich it swallowed centuries ago” (Barnes). This quote shows how sometimes people cannot control what ends up happening as far as history goes. Sometimes tragedies just happen. It is, however, our job to prevent these tragedies or “burps” from coming up
What caused the crash of the 2008? There are many similarities and differences between the crash of 1929 and the crash of 2008, some similarities make Americans think, why did we let this happen to us, again? The failure of the banking system in the years leading up to 1929, contributed to the crash of 1929 we well as the Great Depression. Consumers were putting purchases on credit and the bank did not receive the money back that they were owed. Banks were down 50% (Brennan). Bank failure was one of the main causes of the stock market crash of 1929. “We find that the credit boom view provides a useful perspective on both the boom of the 1920s and the subsequent slump. In particular, it directs attention to the role played by the structure of the financial sector and the interaction of finance and innovation” …show more content…
A large portion of the American population was hurt financially by the crash of 2008. Parents or grandparents today may be able to tell stories about how the crash of 1929 affected their family. Regardless of direct experience or secondhand knowledge, the economy affects all people all over the world. People today need to educate themselves on what happened in the two major crashes in American history so that they do not let something lie that happen again. “Does history repeat itself, the first time as tragedy, the second time as farce? No that’s too grand, too considered a process. History is just burps, and we tasted again that raw onion sandwich it swallowed centuries ago” (Barnes). This quote shows how sometimes people cannot control what ends up happening as far as history goes. Sometimes tragedies just happen. It is, however, our job to prevent these tragedies or “burps” from coming up