THE GREAT DEPRESSION FACTS UNCOVER SIMILARITIES BETWEEN RECESSIONS AND DEPRESSIONS
Today we see a market that is becoming globalized since the inception of online trading. With traders being able to buy stocks in the many different markets we also see similar fluctuations in all markets.
As an example we have been hit with the trouble of the EU banking crisis as well as the bankruptcy of countries such as Greece and Spain. These factors have affected the entire EU banking system and therefore affected global growth forecasts. The market has been a wild ride since the drop in the fourth quarter of 2001 and especially the drop of the fourth quarter of 2008. The great depression facts show us more similarities to the market of then and now. The *great depression facts* show a bubble of credit building to the point where it lost its footing and became just unstable enough for all the creditors to call in their debts. We read of “Black Tuesday” in which we were hit with a plunge in the stock market that would send shockwaves through the economy and trigger the start of the great depression.
A LOOK AT WHAT CONTRIBUTES TO A RECESSION OR DEPRESSION
Great depression facts tell us of an economy that struggled not only to employ individuals but find the bottom of the economy in order to start the re-building of markets. What we noticed that in the prior months before September 2008 we got to watch as many Americans were able to purchase homes that were financially out of their grasp and would send their debt-to-income ratios soaring. Many individuals went with adjustable rate mortgages and interest only mortgages in hopes and the speculation that their already overly inflated home values would continue to rise. The community reinvestment act that President Jimmy Carter signed during his administration used tax dollars to help low income families purchase homes. This law was loosely enforced and under the radar until President Bill Clinton added addendums to the bill which sent it into overdrive. Mortgage companies recognized the leniency of the reinvestment act and started to house families in new homes that were out of financial reach in a standard scenario. With several types of adjustable type loans offered to families when then saw a massive rate climbs in defaulted loans which the hit lenders and secondary lenders and put a halt to lending and the building of new homes which then cased builders to default on their loans and then began a chain reaction. This coupled with state and federal deficits as well as global economic problems caused a ripple effect that would become shockwaves in the eyes of investors of the national economy.
GREAT DEPRESSION FACTS SHOW US THAT HISTORY CAN REPEAT ITSELF
This is a simplified version of many of the contributing factors that caused the recession of 2008.
According to Great Depression facts we can see similarities between in the fact that a bubble of
credit had ballooned up causing a “can’t lose” mentality among investors as well as individuals. *Great Depression facts* state that traders were using credit to buy stocks which is similar to builders building solely on credit which is not uncommon but these individuals became aggressive and were fully extended with no savings what so ever in the hopes of making that much more income. If you would like to learn more about Great Depression Facts then click on our other articles to learn more.
If you study history and the effects the Great Depression had on almost all Americans and large portions of the world, we see that people were unprepared for such a storm to roll in. With the housing bubble bursting and the stock market falling 777 points in a single trading day, I started to sense that history was repeating itself so I started to research great depression information.
GREAT DEPRESSION INFORMATION – TRADING & DEBT
Not sure where to start with all of the great depression information out there. Stock market traders buying and selling in larger quantities in the 20′s, you started having traders give a sort of I O U to one another. This was fine because the market was becoming so strong and such a force that people took one another’s word for it. Just like the housing act enacted by the Carter administration, where citizens who never had the chance to own a home were assisted by the Government. This increased home sales and building stats. These new found home owners had to meet certain recommendations before approval. You would still have consumers with the least capital gaining mortgages. With home loan A.P.R. rates very high compared to todays standards, we started to see banks lending out more and more. They sold these mortgages to secondary buyers. President Clinton then made an addendum to the bill which sent it into a faster pace.
The traders were in essence doing the same, buying more than they could handle if the floor were to give way. Just like home owners buying a house far too expensive for their debt to income ratio. Just like the stock brokers, we saw greed take place and coined the phrase “predatory lending”. This was the banks doing, as well as the builders, and realtor’s. Home building supplies began to rise, causing prices to rise, which in turn caused people to buy houses for higher mortgage payments than they could afford. Once this bubble grew till the point that debts were called, the floor gave way and everything suddenly lost all its worth. Just like the stock market, traders had just started trading worthless paper back and forth. Once the debt was called it all was realized to be worthless.
GREAT DEPRESSION INFORMATION – INSTANT GRATIFICATION
We are a consumer driven economy where we like the best and throw away the rest. We love instant gratification. The thrill of a deal and to be the envy of your friends leads to a mountain of debt. The only people not affected by the great depression were the people that were self sustainable. Everything they needed was around them in the fields and woods. They were more than likely poor in the first place so it wasn’t much of a change. So how do we keep from becoming the people shocked by the fall of the market? We have to clear our debt, wait and save for your pleasures. It makes them worth so much more. It’s like a kid who works for his first car or is given his first car. Which is more gratifying? Which one will be driven easier and taken care of better? Prepare for winter. Take the time to have extra necessities in your home. Imagine if all hell broke loose and you had no gas in your car and no food at home. How packed do you think the supermarket will be? Build a surplus and it will build piece of mind. This article maybe vague but I wanted you to get the gist of things. There are tons of other sites out there with Great Depression Facts. I would love to hear your comments on the subject and articles with Great Depression Information.
It is true that the Great Depression of 1930s is considered to be the worst economic period of this century and there are some shocking Great Depression facts and statistics to assist this truth. There have been some shocking revelations which have brought some undiscovered Great Depression facts to the fore, some facts which clearly show how much the people and the economies suffered during this time. These facts about the Great Depression show the severe cases of loss in money, the dropping employment rates, the worst conditions and the lowering standard of living which had affected the people in the entire world severely. Other than that, there are some interesting Great Depression facts which show how and why this condition came to the fore and what made it slowly fade away and put the economy back on track.
DISTURBING GREAT DEPRESSION STATISTICS
Some disturbing Great Depression statistics have been uncovered which clearly state the worsened condition of living in those times. For example, according to a Great Depression fact, almost 50% of the children who were born during this period did not have the adequate shelter, food or medical facilities for their care. Another shocking Great Depression fact shows that the unemployment rate had reached 80% for some cities while on an average, it was somewhere around 25%. The farmers were the worst hit as there was a steep drop in the prices of the crop and around 750,000 farmers had declared bankruptcy during the Great Depression 1930s. These Great Depression statistics are enough to give you a fair idea of the living condition of people during those times and some Great Depression facts would tell you how the economy recovered after this period.
GREAT DEPRESSION FACTS ON RECOVERY OF THE ECONOMY
After the extreme slump that was witnessed by the world in this decade, there were some interesting factors which brought about the recovery of the economy. The Great Depression facts consider the World War 2 to be a catalyst which sped up the recovery of the countries and the world economy. The jobs which were provided to people through the means of war covered for the unemployment and the trade which commenced again led to the revival of the economy. Most of these Great Depression Facts and Statistics point towards the importance of World War 2 in boosting the economy and ending the Great Depression in America.
Even though the Great Depression was one of the most challenging periods of world history, here are some of the Great Depression fun facts which were witnessed throughout the decade of the Great Depression. The Great Depression fun facts are mentioned here in a lighter vein and should not be linked with the trauma and suffering which went through the entire period of the Great Depression.These Great Depression facts were mainly used as a respite from the problems of the regular life, especially the escalation of the basic necessities and challenges of daily life during this period.
THE GREAT DEPRESSION FUN FACTS FOR OUR GENERATION
For those who have not witnessed the Great Depression, here are some interesting Great Depression fun facts which made the life better for the people during those times. The most basic Great Depression fun fact is the establishment and popularity which movie theatres enjoyed during that time. This was one of the few industries which experienced a big boom during the Great Depression of 1930s as these were the means of entertainment for most Americans. A Great Depression fun fact mentions that on an average, 65 million Americans went to the movies every week and the reason behind the popularity of this medium lied in the entertainment and the use of movies in escaping the reality. Movies provided an alternate dimension to the suffering Americans and this brought satisfaction and energy back into their lives. Another Great Depression fun fact tells us that most of the development of highways and buildings was done during this period because there was a need of creating employment in the nation, for curbing the higher rates of unemployment for this period.
GREAT DEPRESSION FACTS FOR CHANGING FASHION
Fashion was another industry which saw major boom and innovation during the Great Depression period. Facts on Great Depression mention that due to the crisis, there was an influx of affordable fashion items which allowed stylists to cut costs while providing new fashion items in terms of longer hemlines, lower heels, slim waistlines and less makeup. These fashion items became quite popular in those days and fashion accessories were invented during this time, according to a Great Depression fun fact, as they helped in achieving a different and new look even while wearing old dresses.
For collecting the most basic information on the Great Depression, you need to know what the term Great Depression means. According to various Great Depression facts, Great Depression was the term coined for the period from 1929 to 1941 which saw extreme economic slowdown, loss of employment, lowered standard of living and basic problems of food, shelter and medical facilities. It is still known as the worst period which the world has seen till date and according to various Great Depression facts, the Great Depression in America spread to the entire world and gripped the world in acute recession. Herbert Hoover was the President of the United States of America during those days and he is still blamed for his inability at handling the crisis effectively. Apart from this information on the Great Depression, there are some other Great Depression facts which can help you in understanding this period well.
GREAT DEPRESSION FACTS FOR UNDERSTANDING ECONOMIC CRISIS
According to popular Great Depression facts, the onset of this economic condition throughout the world happened through a series of market crashes. Every subsequent day of a market crash is marked and the three main days were Black Thursday, Black Monday and Black Tuesday, with Tuesday being accounted for a loss of $14 Billion alone. Some Great Depression facts tell about the unemployment condition in the world, with 25% being the average unemployment rate around the world. The Great Depression of the 1930s also saw a lot of drop in the standard of living and according to some Great Depression statistics, nearly 50% children did not have access to the basic necessities like shelter, food and medical facilities. The Great Depression was finally ended by the onset of the World War 2 as the war brought in various job opportunities and trade options between the allies of the country.
WHAT THE WORLD LEARNED THROUGH THE GREAT DEPRESSION
The Great Depression facts hold this period to be the worst in the history of the world and a lot has been gained from this experience. The economies have become smarter and the government has changed its functions to ensure that another such condition doesn’t set in easily. According to the information on Great Depression, the banks which had suffered huge losses during that period taught the government about better banking facilities which can be implemented in the world economy, thus making the world safe from threats like the Great Depression of the 1930s.