American crisis

Fourth class was about the Great Depression and the Subprime mortgage crisis. 

These crises seem to have similarities. For example, in the Great Depression there was an “Economic bubble” while in Subprime mortgage crisis there was a “Real estate bubble”. 

Another similarity is that Wall Street was involved in both crises. In the Great Depression, companies and people bought and sold shares. In the Subprime mortgage crisis, investors and banks bought and sold ‘toxic bonds’. 

The consequences are also similar: lots of companies and/or banks went bankrupt, thousands of people lost their jobs, unemployment rate increased, middle class people were affected, crises spread all over the World, etc. 

 

 At the Great Depression time, the President of the US was Hebert Hoover. He did not take the necessary measures to face the crisis so people got angry. When the Subprime mortgage crisis started, the President of the US was George W. Bush. He did take measures but these measures consisted of save banks and companies which were responsible for the crisis. Once again, people got angry. Both Presidents were from the Republican Party. Both Presidents were succeeded by Democratic Party’s candidates. 

Finally, despite the facts, I think the main reason of both crises was greed. People were not happy with what they had, they wanted more and more.