The great depression vs. The Horrible recession of the present time

The Great Depression versus the Great Recession
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The Great Depression and the recent recession both led to massive job losses and rise in the unemployment rates, whereby the government and businesses prolonged their effects. The Great Depression was devastating to the economy of USA in the 1920’s and 1930’s as the US government led to the increase in the gold reserve ratio. This intervention initially caused contraction, but when the government later lowered the ratio other nation kept raising. America was the initiator of the changes in gold reserve ratio but they could not control the impact of her policy. In essence, financial deregulation led to the financial crisis as banks and investors participated in excessive risk taking.
The recent recession of 2008, is a scenario that began with the housing market through the mortgage backed securities. Businesses in this sector sold complex mortgage instruments to banks and investor as though the products were secure. Consequently, banks sold the products to more customers without verifying their credit worthiness which led to an unsustainable boom in the housing and property market. Faced with the promise of quick returns, banks encouraged many citizens in the United States to acquire the products even when the clients could not afford repayment. After many mortgage holders began to default on their repayments the housing market suffered as prices of homes declined substantially and there was an increase in foreclosures.
The federal government is also partly to blame for the recession especially with their minimal involvement in regulation. There were signs that the economy was slowing down, but after many years of deregulation in the housing market there emerged complex derivative ins...