The Great Depression and Today

In the Great Depression, the stock market crashed because consumers investing with money they did not actually own. While America has long since recovered from the burdens of the 1930's, our economy in today's society still has its flaws. according to this article on SeekingAlpha.com, the recession of in our lives was caused for reasons not completely unlike those of the Great Depression. Similar to the 1920's, the American government offed low interest loans to consumers, allowing them to buy what they wanted on credit. The government also allowed the creation on agencies, in specific Frannie Mae and Freddie Mac, that allowed people to pay for pretty much anything they could never afford otherwise. So in all, The Great Depression is extremely similar to today's recession, especially in regards to the stock market. Even though the stock market has hit extreme lows and has rebuilt since, experts say that the market can crash again, leaving stocks at 90% their worth. So is it worth it to still invest?