Answer:
What made the Great Depression "Great" was the government response. Constant changes the regulatory environment, tax increases, massive deficits, and failure to let the market correct paralyzed the economy in its depressed state for 15 years.
Both were caused primarily by an over expansion of credit rooted in loose money supply. The monetary response to the current recession has been different. Rather than tightening to force the market to bottom, the Fed has maintained low rates in an effort to re-inflate the bubble conditions. Hoover/Bush & FDR/Obama responses are similar as all tried to spend their way out of the problem.
1929 crash:
After WWI, Britain reset the pound to the pre-WWI level even though their money supply had far exceeded pre-WWI levels. In an effort to slow the flight of gold from Britain, the US federal reserve (led by Benjamin Strong) lowered interest rates. As always, artificially low interest rates caused massive distortions in asset values. Money flowed into the stock market and people who would not normally have been stockholders bought stocks in place of other investments that would have yielded better interest rates absent fed policy. Margin was used excessively because the real cost of leveraging was distorted by fed interest rate policy.
The fed continually lowered interest rates all the way into 1929. When the bubble popped, they tightened policy and raised rates. This contributed the deflationary spiral; however, the deflationary spiral could not have been as severe without the loose policy during the bubble.
2008 crash:
Beginning in the early 1990s, the federal reserve (led by Alan Greenspan) lowered rates while monitoring consumer prices as indicators of inflation. They ignored bubbles in the stock market directly caused by their inflationary monetary policy. When the stock bubble popped, they lowered rates further and pushed misdirected investment towards other assets - most commonly housing.
After the attacks of 9/11/2001, the fed pushed rates to 0 (long term rates were effectively negative and continue to be).
Explanation:
Answer:
Sworn in on September 27, 2005, the Right Honourable Michaëlle Jean, 27th governor general since Confederation, represents the Crown in Canada and carries out the duties of head of State. The governor general presides over the swearing-in of the prime minister, the Chief Justice of Canada and cabinet ministers.
Explanation:
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<span>False. If a security officer hears shots fired at his post, he should immediately evacuate the building. If a security officer hears shots fired, he needs to try and determine where the gun shots are coming from and call assistance if need be. Evacuating only allows the person to get inside without force or make the security officer a target in the shooting. </span>
The correct answer is "<span>40 percent".
40 percent of students who graduate high school has tried marijuana, how? High School life is considered to be the period of an individual's life where they experience and try a lot of new things, because students are curious. Due to that curiosity they are brought to different experiences, mostly because of their peers as well.</span>
War of the first coalition
