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It really isn't. So many safeguards have been put in place to prevent such a meltdown, it really cannot happen. That isn't to say we can't have a downturn in economics generally, or a slowdown in growth, or a big rise in interest rates. but at the start of the depression the stockmarket was absolutely and totally unregulated; there was no Securities and Exchange Commission (SEC) and stock was insider-traded to a ridiculous degree by bankers and executives of the massive companies of the time like RCA and Westinghouse. By the time they had traded the stock to an insane level and one or another stock began to crash, they were already sold out of it and manipulating up the next in ways that would certainly land them in jail today. A good little book, if you can find it on Ebay or Amazon is The Great Crash of 1929 by Galbraith.


Because the Great Depression demonstrates the ills of buying on margin and many others that made so many people lose their money when the Stock Market crashed so has helped to create regulations for the stock markets nowadays.


The Great Depression not only represents an example of the historically proved importance of an under-regulated market but it also is the source of legislation that is responsible for the US social programs, banking system and regulatory facility.

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โˆ™ 2011-08-27 13:02:13
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Q: How is the Great Depression relevant today?
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