1929 Wall St Crash, 2009 Global Financial Crisis, history repeating or economic hiccup?

80 years this year marks the 1929 Wall St Crash and the global financial crisis, 80 years on we face a similar position, have we or our governments learnt anything or is it a simple case of history repeating?



P.S. Interpret this question as you wish :-)1929 Wall St Crash, 2009 Global Financial Crisis, history repeating or economic hiccup?I did an interview with my AP Economics teacher for Journalism class about this very thing, except about "America's financial crisis." I can't say much for the world... but I know that America started the global downturn, so if America picks up, will the world pick up? Anyways, I respect/trust my teacher's opinion and will repeat a few of the Q %26amp; A I did with him here. (And I had previously typed this up lol...)



Q. Exactly how bad is the economy?

A. Historically, it’s fairly deep right now, but not as deep as it was in the 1980s and 60s. You can go back to several times that have been worse than this. It just depends on what is going to happen in the next year. I think we’re heading into 2 to 2.5 years of recession. Right now, the unemployment rate is 7.2 percent; historically, that isn’t so bad. If we get up to the 10 percent range, then we it’s time to worry a bit.



Q. How long do you think it will be till we “pull through” this economic crises?

A. Well, there are a lot of variables that go into that. With all the economic stimulus packages going around and Obama taking over, you really don’t know because it all depends on consumer confidence. Fortunately, we have a new president coming in, and with a new president, there’s always new hope. I think that will help ease it a little bit, but I’m looking for it to be early to mid 2010 before all is said and done about the economy.



Q. With the following year, what immediate effects do you foresee because of our current economy?

A. When people lose their jobs, they stop spending, and that hurts the businesses that would normally be selling to them. People are afraid of losing their jobs, so they’re going to stop spending. What you start to see is companies, that would otherwise be okay, start to have problems because no one is buying their products. Therefore, you’ll start to see more layoffs. Revenue generated by sales tax will be down; state governments won’t be able to raise the funds they need, and at the national level, hopefully you’ll start to see cutbacks on “pet projects” with funds directed at more to places where it is needed in the economy.



BASICALLY... economic hiccup... happens all the time :)1929 Wall St Crash, 2009 Global Financial Crisis, history repeating or economic hiccup?I believe it is a case of history repeating itself. If history keeps repeating itself in this way, within the next 15-20 years we will enter WW3 which is looking likely.



Tensions between Russia and the West are now becoming tighter and it is just as tense in the East with Iran.

If the West keep interfering in other countries, surely it is only a matter of time before Russia forms an alliance with another superpower , say China, or Iran?1929 Wall St Crash, 2009 Global Financial Crisis, history repeating or economic hiccup?Keynesianism did not exist in 1929. The current situation is partly the result of the government misusing Keynesinism for decades.



In 1929 the American people had not spent the previous 50 years being brainwashed by the television set into being good consumers and there were no credit cards. Americans spent 3 generations forgetting the lessons of the Depression and have let stupidity get out of control.



The nitwit economists helped though. How many Americans were high school graduates in the 30s? So why haven't economists suggested mandatory accounting in all of that time?