Comparing current economic crisis and Great Depression
The current U.S economic crisis that begun August 2007 has plunged the country into a very dangerous phase in the U.S economic performance (Hilsenrath and Paletta, 4). The great decline in stock market which reduced spending and wealth among people resembles to the great economic depression (Katz, 10). The Great Depression was an economic recession that eroded stock market wealth and eventually spilled to other sectors of the economy (Hilsenrath and Paletta, 4). During the Great Depression, it has been recorded that Dow-gold ratio reduced substantially to a lower of 47 percent, most similar to the 42 percent experienced in the current crisis.