ipl-logo

Similarity Between The Stock Market Crash Between 2008 And 2008

564 Words3 Pages

Blake Thompson
Mrs O’rear
26 April 2023
English 1-2
Stock Market Crash
In 1929 the stock market lost nearly 198 billion adjusted to 2008 inflation rate. Whereas in the 2008 stock market crash, it lost nearly 19 trillion dollars. The similarity between the 2008 and 1929 stock market crash is the economy was booming right before both crashes and there were falling real estate prices after the crash. In this essay I will focus on three simulatery between the 2008 and 1929 stock market crash, unemployment rate, economy booming, and easy access to loan. These three points can teach about the future of stock market crashed and how to prepare for them In 2008 after the stock crash the employment rate dropped from 5 percent to nearly 10 percent (Bureau of Labor Statistics). Around 1.5 million jobs were lost. To put this in perspective during the great depression in 1930-1933 the highest unemployment rate was 35.6 percent, with more than 3.2 million people becoming unemployed. Though many more jobs were lost in the 1929 stock market crash, the spikes in unemployment for both crashes were caused by a presiding economic boom and easy access to …show more content…

Right before the 1929 crash the economy was booming (France 24), unemployment rate was low and also automobile jobs spread throughout the United States which led to many open jobs and helped many fellow Americans out. Until of course the stock market crash of 1929 when stocks went down nearly 10 times. The economy was booming right before the 2008 stock market crash and then it took a very sudden hit. The economy took a deep dive and is still growing back to this day. The 2008 stock market crash was the most serious financial crisis since the great depression. At first the decline in money was moderen and then it rapidly died and the economy went way downhill from there and is still coming back to this

Show More
Related

Great Depression Dbq

634 Words | 3 Pages

Following the end of the First World War, the United States was initially prosperous. In 1929, that prosperous age about-faced into a downward spiral that enveloped the entire country. What was eventually called the Great Depression was essentially caused by four major events. At the start, the stock market was strong and thriving and the population was willing to invest in it. Americans were so confident in the market, in fact, that it was common for them to take out loans to fund their investments.

Read More

How Did Americans Grow During The Roaring Twenties Dbq

1053 Words | 5 Pages

Leuchtenberg sad, “There was no single cause of the crash and ensuing depression,” [Doc2]. Many things as stated earlier contributed to the crash, such as overexpansion of credit, goods, industries and rising rates of unemployment. Many Americans saw the Stock Market as an easy way to create wealth by buying stocks cheap, usually at a margin, and selling for a higher price, hopeful to profit. Buying on margin was the act of paying some money on a stock, but loaning the rest from a bank who expected would be paid back when profit was made. Stocks became more expensive to the point where nobody wanted to buy them because of their extreme price.

Read More

Great Depression Dbq Essay

768 Words | 4 Pages

Great Depression DBQ Write Your Essay Here: (Be sure to BOLD your document #’s and highlight outside information) After the stock market crash of 1929, America went into a severe financial crisis known as the Great Depression. During this Great Depression, about 75% percent of American Families lived in poverty, and 25% of people lost their jobs and became unemployed. During this time, many banks went out of business too because people demanded their money back due to the Stock Market Crash. This caused a huge economic banking emergency.

Read More

Great Depression Dbq

884 Words | 4 Pages

When these stocks crashed banks were left without money and many had to close down. People lined outside of banks for hours to try and get their savings money out. This was impossible since banks did not have enough money. Millions of people lost their savings and were unable to get the money they needed to support their families. This also led to a big rise in unemployment.

Read More

How Did The Stock Market Crash Lead To The Great Depression

135 Words | 1 Pages

Before the Stock Market crash of 1929, America went through a decade of prosperity and social change known as the Roaring Twenties. New fads and numerous inventions emerged throughout our country. Many people bought on credit and as a result, our economy flourished. However, many Americans failed to realize this would be one of the underlying causes leading to the Great Depression. For instance, “Most people bought, but many couldn’t afford to pay the full price all at once.

Read More

Great Depression Dbq

859 Words | 4 Pages

This led to the Wall Street crash where 9 million people lost their savings and ensued in a bank crisis. Consumerism plummeted and failing businesses laid off workers, where around 12 million people were unemployed by 1932 and the unemployment rate was 33% in 1933. “The Crash exposed the weaknesses that underlay the prosperous economy..” (Leuchtenburg) states how the crash revealed the underlying crippled economy the US had and how it completely shattered the economy. The nature of the Depression was caused through a range of causes and the situation deepened from the

Read More

Compare And Contrast The 1930s And The Great Depression

654 Words | 3 Pages

The 2008 Great Recession and the 1930s Great Depression are both aftermaths of similar economic circumstances and are only different in a few ways. Despite the difference in severity of the stock market crash, both periods are unmistakingly marked by speculation on stock leading to Americans buying on margin resulting to the government needing to intervene. Speculation on stock led to the historic stock market crash in 1929 that brought on the Great Depression, similarly speculation on housing prices in 2003-2007 brought on the 2008 recession. With little regulations on stock market purchases leading up to the Great Depression, investors were able to buy stocks on margin, with the only requirement that they put 10% down. In other words,

Read More

Similarities Between 1929 And 2008

367 Words | 2 Pages

The stock market crash of 1929 (great depression) and the market crash of 2008 (financial meltdown) both came as a result of lenders taking so much gambling on credit accessibility, and borrowers taking more than they could earn. 1. the similarities - American economy was flourishing, years prior to the market collapse in the 1929 and 2008. - During the years prior, the economic growth came with bogus speculation, and market forecast that turned out to be false.

Read More

What Are The Similarities Between Great Depression And The Great Recession

1220 Words | 5 Pages

The Great Depression and Great Recession have been known to be the greatest economic crises in the United States. The Great Depression (1929-1939) was a period of drastic economic decline, resulting in the failure of almost half the nation’s banks and the unemployment of several tens of millions of Americans. On the other hand, the Great Recession (2007-2009) was an economic decline, impacting financial markets and resulting in the loss of jobs and homes for millions of Americans. Although the magnitude of the Great Depression was greater by far, comparisons can be made between them. This can allow one to not only enhance their understanding of these catastrophic periods but also the extent to which they were similar.

Read More

Harlem Renaissance Influence

1645 Words | 7 Pages

This caused many people to lose their jobs and many businesses to lose their money. According to Tindall & Shi (2012) “from 1929 to 1933, U.S economic output dropped almost 27 percent. The unemployment rate by 1932 was 23 percent” (1082). This shows how much of an impact the stock market had on people. It caused many people to lose their jobs and people were losing money also, this caused many suffering among people.

Read More

How Did The Great Depression Affect Germany

1096 Words | 5 Pages

The Great Depression was a catastrophic event beginning in 1929; America, and its effects lasting long into the 1930’s, in countries all over the world. The “biggest stock market since records began”9, was caused

Read More

How Did The Stock Market Crash Cause The Great Depression

1257 Words | 6 Pages

During the 1920s, the United States Stock Market underwent rapid expansion, marking a decade of increasing conveniences for the general public and generating a nationwide attitude that positively transformed the American people. In contrast, this economic boom later precipitated a worldwide collapse of share values and triggered economic decline with catastrophic levels of unemployment, poverty, self-doubt, and bank failures. The far-reaching recession in the stock market led to a universal loss of confidence not only in many American families and entrepreneurs, but also contributed to large amounts of social pressures that numerous businesses and farms encountered as a nation. As a result, the Stock Market Crash of 1929 altered a generation not only through financial means, but also reversed America’s attitude that was prevalent during the 1920s – a thriving period of economic prosperity, social change, and mass production of technology, goods, and services.

Read More

What Caused The Great Depression Dbq Essay

726 Words | 3 Pages

In 1929, the U.S. was hit with the worst economic crisis in the history of the country, the Great Depression. The Great Depression left millions of people unemployed and cost millions their life's savings. The Depression lasted for ten long years for the American people. Since the Great Depression ended, people have studied it, trying to figure out what happened that started it all. The problem was, in fact, the poor economic habits of the people at the time, such as speculation, income maldistribution, and overproduction.

Read More

The New Deal And The Great Depression

143 Words | 1 Pages

The American stock market during The Great Depression, had been booming regularly upward for almost a decade; crashed, revealing the country into its most severe economic downturn yet. Speculators lost their shirts, had bank fails, the nation’s money supply go lower; and companies went bankrupt and began to fire their workers in large gatherings. By 1932, one of the bleakest years of the Great Depression, at least one-quarter of the American workforce was unemployed. When President Franklin Roosevelt took office in 1933, he quickly maintained the economy and provided jobs and support to the people who were suffering. About eight years later, the government came up with a series of momentary programs, known as the New Deal, that intended to

Read More

What Caused The Great Depression Research Paper

780 Words | 4 Pages

In the early 1930s the labor force in countries that were industrialized saw as much as one forth of its workers unable to find work. Conditions were starting to improve by the mid 1930s, however total recovery did not happen until the end of that decade. This was a very difficult time in United States history and around the world, but it could be said that something good came out of it, central banks throughout the world now try to thwart or moderate recessions. It is unclear whether a change like this would have occurred if not for the

Read More

More about Similarity Between The Stock Market Crash Between 2008 And 2008

Related Topics

Open Document