Cause Of The Great Depression

Many People may say that history repeats itself, it might be with climate, politics, or even an economics. The two major wounds in the American economy, were both cause by Wall Street. One in 1929 named the great depression, it did not end until World War II started. The second economic tragedy was the recession of 2008 and shortly ended in 2009. Individually of these caused great devastation towards the American people which lead them to be homeless, hungry, and sometimes led to suicide.
To begin with, the Great Depression was an economic devastation in the U.S. In 1929, the stock market crashed, creating millions of people without jobs. It wiped out millions of investors, a lot of people lost their earnings they made in the stock market.
The great depression was a starting point of the music industry singing and writing about the countries flaws (ASS). A very famous song named, “Brother can you spare me a dime?” singed by Bing Crosby, written by E.Y Harburg and Jay Gormey. It is a tune written about the great depression in full effect. The lyrics read, “They used to tell me I was building a dreamWith peace and glory ahead Why should I be standing in line Just waiting for bread?” It interprets many things about the situation for example the ambition of working hard towards a dream and seeking financial stability one’s family. Instead of being a bread winner for his family, now he was in line for bread. It paints an image of a hard working American suddenly just waiting for a hand out. (ASS) As people realized the economic issue was too far from a solution, in 1929 American’s were using stock as a collateral for a loan, as we know it the stock market is as stable, as the sea. Indeed we can see that history repeated itself in 2008, the Great Recession was an economic down turn for the twentieth century. Just like the Great Depression the New York Stock Exchange played a major role. It started in 2007, to June 2009 this was the longest economic tragedy since World War II. The real estate market was a disaster waiting to happen. The housing bubble was the issue that affected half of the U.S. housing market it declined
People with the subprime loans were not making the payments. Supply was high and demand was low for the housing market. Borrowers had a mortgage more than what their homes were worth. Some eventually stopped paying creating a default. Investors were stuck with the defaulted shares and lost money but there was insurance for these kinds of stock they were called credit default swaps and created mortgage back security. The company AIG sold tenths and billions of dollars of these kinds of insurances. AIG sold a vast amount of these insurances but had no money to back them up when they would fail. As we know it things went wrong and there was no money to back up the default. The financial institutions stopped purchasing subprime loans because of their dependency. The big name lenders declared bankruptcy and the ship was