Barack Obama stated in a speech on May 14th concerning the housing crisis that, "There are some similarities, though, to what happened back in the late 20s and early 30s and what's been happening now, and the biggest similarity is how we've been dealing with Wall Street and what's happening in the financial markets." Today he stated that after the Lehman Brothers crisis and the buyout of Merrill Lynch by Bank of America that we are in "the most serious financial crisis since the Great Depression." On the other hand, John McCain is much more cautious stating today that "There's been tremendous turmoil in our financial markets and Wall Street and ... people are frightened by these events. [However] the fundamentals of our economy are strong. But these are very, very difficult times."
How did the Great Depression start? It began with the stock market crash of 1929 followed by the failure of over 3,000 banks in the 1930s. Americans stopped purchasing across the board. Further, America's policy with Europe and the drought conditions that existed in middle America just added to the events of the day. Understanding this, the answer to whether we are entering another Great Depression lies in part with how Americans react to the latest news. If individuals fear for the future, they might not purchase as much. Obviously with less being purchased, there will be less to manufacture. This will result in a loss of jobs. If consumer confidence stays high then we might experience a serious recession but hopefully we will be able to avoid the worst of the Great Depression.
Do you believe that we are headed for another Great Depression? Why or why not?
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15 comments:
I dont think there is going to be another depression. I agree with the text because it depends on the peoples reaction to daily news. like McCain said the american stock market is strong and it would take alot for the stock market crash. from reading this text i dont really see a treat to our country, But you can never predict the future.
Ramell Pearson
Period 2
I dont think that we will go through another depression....The United States is strong and we think on our feet most of the time, so i believe we will bounce back quick. Its kind of shaky though if we actually think about it, no one can ever be sure about the future but I hope everthing work out for the best because I cant accept the fact of a bag of chips goin up to $26.00. ha ha ha.
~Malika Franklin
I dont think that is going to be another great depresion.
Because the United State have already past through one.
Not couse they just have past through one, But
because I think they have already experience with this
kind of problem. The united state always become
sucessfull in there problem. They will find the way to get out of this.
- Rafael Consuegra
I think that it can
happen because the United
States waste a lot of
money in the war with
Irak. If the United
States don't want to
have an other great
depresion they have to
ttry not to spend a lot of nomey in unnesesary stuff.
-Jonnathan Quito
I say yes to the question that we are almost getting in another great depression because now president Bush is asking to congress for money because of the problems with the stock market,that money will come from the taxes.
Daliz Rivas
I think that United State can get in another great depression because with the president Bush we lost alot money in a war with Irak. And now we need a republican president to stop the war and overcome this problems with the economy.
Cristal Acosta._
i really dont think there going to be another depression like da text said "But these are very, very difficult times" and pules we people think fast and quick and if do have one we back right before you know it !
~Erick Ortiz~
i think we are to strong to be going through another Great Depression.on the other hand we might be going through a depression because we went in wars wit Iraq and lost money. i just think right now times are getting hard but we will survive it.
Jamila Lofton
period 2
i believe that there is a 50/50 chance that we are going through anothere great depression. Why I say this bescause of the this that have happened to the states and city' wit stock market and we are win in the war. Also money lost even though we are a stong state we are falling in deep.
tatiana folk
As of now it is really hard to determine if we're headed for another Great Depression. The stock market always has its ups and downs but as recently seen with the current drop it is possible. All goods/ materials are being hiked up in prices and the salary maintains at a very low minimum wage of $7.15 in which people can't live off. I can only imagine what we're headed for if jobs are seriously being cut.
-Liliany Rodriguez
To be honest, i think there will be another great depression because of the houses crisis. Also the stock market is lower now then it was since 9 11. I think if obama wins the election he will help to stop this new great depression.
Daniel Rivera
There are a couple of thing that have an effect on weather or not there will be another great depression, it depends on us. By this I mean that if a lot of people lose there trust in banks, then they will retrieve they're money and the banks will collapse. However, if the government succeeds in bailing out these companies and banks then there is a great chance that there will not be another great depression, or at least for another few decades if the economy keeps getting better and stays that way.
Lisenny Rodriguez
i believe that we are heading for another great depression because there is a great loss in money.And many people are lossin there jobs.I think we should stop wasting money on the war and help save families
arielle
Yes i think that there is going to be another depression because we spend a lot of money on stock markets and other useless things like the war and history is most likely to repeat itself again.
Kern Oliver.
i believe that we are headed for another great deppresion, bussinesses are not making money like they used to and the stock market is going down everything is getting more and more expensive no one is able to afford as much
Edith Santiago
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