Similarities and Differences of the Great Depression and The Current Recesssion

Today I was asked to put together a piece on current recession compared to the great depression of the 1929. First thing to point out in this case is there was similarities. However i would also like to point out that this recession is one to the likes we have never seen. So lets go back to the great depression. The reason why the depression happened was from a melt down in our financial system.

This melt down was do to an inflationary period in our dollar. This didn't mean that there was no money to be made in the stock market. If you look at this period of time it set what we should ve done to correct this. There is only one problem though the dollar is no longer backed by gold. As you should have realized gold was the only true gainer in the market.

Now lets head back to the current recession we are in. Which in my eyes should be labeled a depression. These markets are only going to get worse with all of the money our government is pumping into it. We are going to go through an inflationary period like Great Britain. Can you imagine if you went to the store to buy a loaf of bread. That loaf of bread was priced at a couple thousand dollars. This period is the most similar to what our markets are going through right now.

Here is one thing that sets it apart from the great depression. When the great depression started it was cause of the banks. With this recession it started because of the banks as well as the price of oil going through the roof. With that being said the banks choose not to fix there bad assets and continued to take on bad assets. The oil companies choose to keep driving the price of gas higher and higher. If you know what a short squeeze is you know what i am going to say here. Instead of the market getting squeezed we the people where squeezed by the government the financials and the oil companies.

We could have avoided all of this if opec wouldve stepped in soon and said pump as much oil as you can. We also couldve avoided this if these banks would have rewrote some of those mortgages to eliminate the bad assets and make them good assets.

So once oil sky rocketed and are financials choose not to correct anything. We are now in a depression yet to be announced. From my research on the us markets and recessions/depression. Most recessions are caused by one or the other not both at the same time. I have also noticed that this happens about every 20-30 years.

The depression lasted from 1929-1939. The next depressions period was during 1979 crash. Going by this it was time for us to go into another big recessionary period. Rest assured with everything the government is doing. We will get out of this depression sooner then they did in during the great depression.

I will create a follow up in a few days after i see the comments so that i can add to this what everyone wants to see in this article. Until that time if you are in need of debt relief or help. I have reviewed a few companies that will help you eliminate your debt and receive a loan. So if you have the time please visit my site Click Here thank you for your time and support with this article i will see you again.

Pete Bernaeyge