Historical analogy

Historical Analogy: Similarities and Differences between the 1929 Great Depression and the 2007-2009 Great Recession [student`s name] [university] [course] Historical Analogy: Similarities and Differences between the 1929 Great Depression and the 2007-2009 Great Recession Failed banks, panicked markets, record-high unemployment and widespread poverty - for students of history, all these have an all-too-familiar ring. But this isn`t the Great Depression, at least, not yet. This is the Great Recession, named as such to signify that the problem is not as serious as the 1929 event. Yet the parallels are uncanny, and many are asking, is history repeating itself? Through its name, the Great Recession people are wont to believe that it is only temporary and will not have the same devastating effects as the Great Depression, but three years after it was first acknowledged, Americans are still wondering when economic recovery will arrive, and how. The government has intervened through a stimulus package, a lesson it learned during the Great Depression, but economic production is slow to respond. Moreover, many companies are still having troubling in keeping their business afloat, and with stricter banking regulations, many are bound to fail from acquiring additional loans to sustain their operations. What are the similiarities and differences between the 1929 Great Depression and the 2007-2009 Great Recession? This paper hopes to address this question as well as determine some of the lessons learned from these two economic recessions. The Causes of the Two Economic Recessions Like in the Great Depression, economists have warned early in 2007 of an impending economic disaster if the derivative market remains unregulated. But it wasn`t until the collapse of the Lehman Brothers in August 2008 when the United States was finally forced to admit that a financial crisis was underway ADDIN Mendeley Citation{1719923e-a255-4f95-a489-1aaa9c52bad2} CSL_CITATION { "citationItems" : [ { "id" : "ITEM-1", "itemData" : { "author" : [ { "family" : "Sandbrook", "given" : "Dominic" } ], "container-title" : "Daily Mail Online", "id" : "ITEM-1", "issued" : { "date-parts" : [ [ "2011", "9", "23" ] ] }, "title" : "Meltdown month: Wall St Crash, Black Wednesday, collapse of Lehman Brothers... all were hit in September. So is history about to repeat itself?", "type" : "article-newspaper" }, "uris" : [ "/documents/?uuid=1719923e-a255-4f95-a489-1aaa9c52bad2" ] } ], "mendeley" : { "previouslyFormattedCitation" : "(Sandbrook, 2011)" }, "properties" : { "noteIndex" : 0 }, "schema" : "https://github.com/citation-style-language/schema/raw/master/csl-citation.json" } (Sandbrook, 2011). The Lehman Brothers, itself a survivor of the Great Depression, was an important financial adviser and underwriter for many of the world`s growing companies. It had a key role in the derivatives industry, holding more than $400 trillion in investments. By defaulting on its obligations, it caused chain reactions to the market and caused the destabilization of the stock market. The day it filed its bankruptcy is now known as "Black Wednesday", a clear referral to the "Black Tuesday", that day in 1929 when the Wall Street prices crashed and the Great Depression was...