131k views
5 votes
Tell me how the 2008 recession was similar to and different from the Great Depression

1 Answer

3 votes

Both the Great Depression and the 2008 recession were characterized by a massive run up in asset prices followed by an incredible deflationary pressure sent both debt and equity markets into chaos.

The difference is that the Federal Reserve did little to save the economy during the Great Depression whereas the recession of 2008 was marked by massive bailouts.

User Elicohenator
by
8.3k points