The Great Depression Of The 1930's

Ðuraškovic (2014) discussed both the Great Depression of the 1930’s and the most recent global economic crisis in 2008. According to Ðuraškovic (2014), the lessons learned in the Great Depression of the 1930’s set some standards and taught some important lessons which prepared for and help through the global economic crisis in 2008. To better understand the most recent economic crisis, this paper will summarize Ðuraškovic’s (2014) academic article.
In the 1920’s the United States underwent what was reported as fascinating expansion and growth of industry, but the outcome was not what was expected. In fact, Ðuraškovic (2014) stated that this growth and expansion ended “miserably”, but inspired changes to economic theory and policy.
Similar to the Great Depression of the 1930s, the 21st century started off without any indication of what was to come. Again, financial theory and policy were flawed and would require substantial transformation before global
Ðuraškovic (2014) referred to the complex and incomprehensible rapid development of financial innovations as “threatening” and “illiquid”. Bank regulations were poorly established and the ability to transfer risk were weakened. Mortgage loans were given out without confirmation of income or assets and were ultimately given to people who were unable to repay the debt. As job wages decreased, the banks continued with risky moves.
In the Great Depression of the 1930’s, the Hoover Administration was the first to deal with an economic crisis of this magnitude which made this what would be a learning experience. The mistakes made by the Hoover Administration were beneficial to the global economic crisis in 2008. Ðuraškovic (2014) reported that anti-crisis measures were taken to strengthen monetary policy as well as an increased and improved budgeting strategy. Fiscal packages, asset relief programs, and financial regulation were