Is the great depression going to happen again?

Question

The great depression happened because:

Banks failed

Farms withered in the Midwest

Now in my opinion i think America is going to go down the tiolet not once again! Our banks are shutting down. Our goverment is taking over the biggest banks of America.

I surely do agree the great depresion is going to happen our stock markets are going down as we speak!!

Answer 1

It looks like it doesn't it? :(

Answer 2

Hahahaha. Everyone thinks that every little dip in the economy is the beginning of a depression...not even close. Even if this recession got ten times worse, it would still be nowhere near as bad as the great depression. Until it gets as bad as the recession of the early 70's, I'm not going to worry too much.

Answer 3

Don't be ridiculous of course it won't happen again as the financial infrastructure in place is far better.

Answer 4

Its scary.  What do you do ?  Pull out your IRA's or ride it out?  Not sure!!  We will have to wait and see.  I think it is a good time for a Presidential change (not because of the current pres.) but because it usually refreshes the economy.

Answer 5

I don't think we are that unstable or stupid enough (yet) as a nation to slip into a major depression like 1929 in the next couple of years.  However, I believe that we are in a recession and it will stay a recession for a while.  Then it will level up eventually and we will be in a plateau: then it will get better. After a while of better we will slip into a deep depression (possibly) if we do not learn to avoid making stupid mistakes or having false faith.

Answer 6

It's quite possible; the main source of the price inflammation, in my opinion, is gas prices. Because transportation is such a large part of shipping, goods, and sales, gas is slowing us down. It doesn't help that we have a mindless war going on, either. (Not to mention the employment crisis and the many jobs that have been outsourced.) And it's really a shame that we've burned a few bridges with other countries that could have (or have already) offered us some help. c**p!

Answer 7

no cuz everyone wud just move out of the country or atleast i wud

Answer 8

I believe it will happen again. By the government has taken away so much money from the social security fund already that we are in so much debt. People would be lucky to get social in 5 years. The demand for gas has gotten so high and the price that people will stop buying and so the price may rise to make up for the losses.

Answer 9

Yes it is being planed and executed . Get prepared . This is to eliminate the middle class in the US . For they are or were a threat to the power of the elite . The depression will not be as bad as the civil unrest in the cities , food problems , and the so called police authorities turning on the people for there own sake .

Answer 10

The Great Depression will never happen again because:

The FDIC (Your money is being insured for $100,000 through the Federal Government within the banking system) which was founded in the "New Deal" that took effect in 1934 after the worst part of the Depression where America had 25% unemployment and FDR had just been elected.

The FED - The monetarist's perception is that the FED failed to back the banks during the depression and they felt that the banks should have failed due to poor management and to increase efficiency in the system.

The FED was created in 1913 as a "Lender at Last Resort" so that we'll never face another "Panic of 1907" in which people will rush to the bank and take all their money thus leaving the banks w/no reserves allowing them to fall.

Freddy Mac, Fannie Mae, and Bear Stearns were backed up because the FED actually DID THEIR JOB this time.

If the FED didn't back up the banks, then CONSUMER CONFIDENCE goes down thus making the stock market collapse as people will pull their stocks to get liquid assets on hand.

Remember, the stock market is based on "consumer confidence" that tomorrow will be a better day and we will get returns on our investments. If our outlook is bleak or pessimistic, then consumers pull out of the stock market.

Our banks are America's "water fountain" that help secure consumer confidence.

Technically, we AREN'T in a recession even though it feels like it and personally, I think we are, but analysts are saying "no" at this moment.

We have to see how deep the rabbit hole goes. The Great Depression will never happen again because remember, the series of events that occured during that time were almost like "the perfect storm"

The agricultural arena was suffering after WW1 and there was lack of construction in residential/commercial building. The stock market was a "giant bubble" and the FED didn't back up the banks at the time.

The FED knows now on when to react.

Hope this helps bud!

-Jerry, Economics Major, University of South Florida

Answer 11

you'd think it would be obvious that this could happen after that one in the 20's, but some people never learn.  and no, there will not be another depression (maybe if obama is elected).