Some people fear an economic downturn like the Great Depression. Do they not realize that other factors were involved in the Great Depression, such as the Smoot-Hawley Act and the drought in the midwest? Gov't intervention caused the last one :O
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WoOZackWoO
ANSWERS: 1
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There's a lot to what you say, but the biggest single cause of the Depression was a liquidity crisis -- not enough cash for banks to be able to make loans that they could expect to be repaid, hence a contraction of the economy and a vicious cycle. Today's parallels to *that* problem are too near for comfort, especially because we don't have any certainty that we've yet gotten to the bottom of our problems, or that the proposed bailout would be enough to stem the tide. In addition to that, we are the biggest debtor nation on Earth, ever, and if we default on our debts -- or attempt to pay them off with inflated currency -- then the rest of the world will precede us down the toilet.
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