The worst hard time

1. The conditions in the economy before the Great Depression were rapidly increasing causing a huge growth in the city. Throughout the city new towns were appearing, and in these towns banks, opera houses, streetlights, and restaurants were being made (Chapter 1). “America was going on the greatest, gaudiest spree in history” according to F. Scott Fitzgerald. Basically the quality of life and business was immensely good at the time. The wheat industry was undoubtedly the way to go for those who wanted to earn large amounts of money (Chapter 1). People everywhere were enjoying the improvements in the economy including Faye’s father who bought her a three hundred dollar piano for her birthday, and was paying fifty-cents for each lesson. Frederick Folker took advantage of the uprising economy to buy a new dodge for the whole family (Chapter 2). The growing economy increased the business of the banks because everyone started taking out loans to improve their lives. The banks were offering forty year loans with a 6% interest rate (Chapter 2). This new law was a grand temptation for women to take out as many loans as they could in order to satisfy their luxury needs. Some however saw it as way to invest in their dreams and instead of using this for necessities they purchased luxuries (Chapter 2). Everyone was living in an abundance of wealth, including the new president Herbert Huber who believed we were in a final triumph over poverty (Chapter 3). The Great Depression and the Great Recession are a lot alike in various ways. They both began on a seemingly positive note and eventually ended badly. The prices of houses reached a peak in 2006 and the housing bubble was ready to pop. House prices were good, the market was doing well and people were buying their dream homes. Rather than playing it safe and purchasing houses they could afford, people chose to buy expensive homes.