ECN 440 Term Paper

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ECN 440 Term Paper: Great Depression and 2007-2009 Global Crisis

1929 - stock market crash was the largest economic crisis that the world had experienced length and severity caused a legendary point of reference for historical economic suffering.
2007-2008-2009 global financial crisis - many people compared to the experience to another large scale depression - now coined “great recession” there are key similarities between the two economic crisis and sound contrasts. outline causes leading up to 1929 stock market crash - policy implementations to fix those errors then compare to rise of great depression in 2008. there are similarities and differences in focus when analyzing these two large crisis. explain lessons learned from both eras and raise main points …show more content…

‘Casino Capitalism’ - Canterbury - power to wall street through deregulation - huge shift from production to financial services. growth of financial sector - now much bigger part of national economy. formed into capitalism where value and profit are not produced but are the result of speculation. this gives huge power to unelected rating agencies and bankers, which government and international institutions find are to alter. This system is how the global financial crisis emerged.

Just as the great depression, a booming economy had been experienced before the global financial crisis. The economy was growing at a faster rtae bwteen 2001 and 2007 than in any other period in the last 30 years (wade 2008 p23). An vast amount of subprime mortgages were the backbone to the financial collapse, among several other underlying issues. As with the great depression, there would be a number of factors that caused such a devastating economic

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