Compare great depression with the last recession of 2008-2009 Term Paper

Compare great depression with the last recession of 2008-2009 - Term Paper Example Its impact hit the world for a long period that would see governments elect new leaders for several terms before it came to an end. Most of the African countries were still under colonial leadership and hence their independence came after the depression. It is estimated to have begun in October 1929, in United States, stretching across the next decade until 1939 (â€Å"The great depression,† thinkquest.org). At the beginning of the depression, Herbert Hoover was the president in United States, but transitions led to Franklin Roosevelt becoming his successor, while the country struggled to recover its economy. The end of the depression marked the beginning of World War II, where the United States appeared to be the chief creditor and source of funds for the war. The European nations were the most indebted to the United States; Germany and Great Britain suffered the most with regard to how their economies were devastated, as they struggled to pay war reparations, what they owed the United States, and change the weak state of their nations. The commonly referred 2008/2009 recession was termed as the worst so far since the postwar period. Precisely, its origin can be traced back in the United States after December 2007, in the emerging issues of the housing market; the economies linked with the United States had to experience the economic shock afterwards till the approximated time of its ending in June 2009 (EPI stateofworkingamerica.org). Majority of nations worldwide are in the better stages of recovery, and some have actually succeeded to overcome the tragedy. The global economy had shown progress before the recession, as most developing countries were working hard enough to raise their economies, since they had acquired development funds and support from the developed nations. Although the depression period was shorter, most developing nations were hit hard due to their linked economies and investments with developed nations. According to Cross, Canada stands out as the only G7 country that has entirely pulled out of the crisis compared to the rest six (statcan.gc.ca). In the United States, the recovery is yet to end though the economy’s progress is encouraging the citizens concerning their future. As for the European nations, the Euro zone crisis continues to affect their economies and industries to date. Most of their powerful nations like Italy, Ireland, Portugal and Spain are thriving on rescue program funds by the European bank and IMF (Raman ibtimes.com). Cause of the crisis: The great depression had earlier been preceded by another depression six months earlier, though its impacts were not severe. Great recession was initiated by the collapse of stock values in the New York stock exchange in October 1929; investors saw a quick and great loss in their shareholdings that after the next 3 years, the stock prices had reduced by 20% of their value in 1929 (â€Å"About the great,† illinois.edu). Before the decline o f the stock prices, New York stock value had increased, which encouraged massive number of investors to purchase more stock, in the hope that it would pay back with much profits when the future stock prices raise. However, the stock prices expressed variation in a very short period before drastically dropping. The value of assets downturn did not spare financial institutions that