Will we see another Great Depression?

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Will we see another Great Depression?

December 23, 2008 – 1:24 pm – No Comment

The IMF warned today of another Great Depression. After looking back at the Great Depression I just can’t see it happening.

In the 1920′s and 30′s depression, the government didn’t intervene before it was too late. Now, our government has taken many steps to stave off a depression. The FDIC is already in place, so there hasn’t been a run on the banks. There are federal work programs in place as well as unemployment insurance, so I don’t see unemployment reaching the 25% it was back then. Also, we aren’t facing a natural disaster like we did then (the Dust Bowl).

The government now, though, needs to put in regulations on the market. The SEC was created in the Great Depression, now there needs to be some other regulations put in place to help cut the losses and keep the credit crisis from happening again.