This incident is the mother of modern Economics and proved classical economic is not an ideal.
A mother of seven in 1936 Nipomo, California. (REUTERS)
A job line in 1940 Los Angeles, California.(REUTERS)
An unemployed graduate in 1940 Oakland, California.(REUTERS)
Unemployed men sleeping in a park in 1939 Minneapolis, Minnesota.(REUTERS)
An unemployed man in 1939 Illinois.(REUTERS)
A family outside their farm in 1936 Tulsa, Oklahoma.(REUTERS)
Unemployed men outside a bank in 1939 Illinois.(REUTERS)
Unemployed former railway men in 1938 Nebraska.(REUTERS)
A family living out of their car in a 1936 photo.(REUTERS)
A man selling his possessions in 1933 New York.(REUTERS)
A Works Progress Administration worker in a Depression-era photo.(REUTERS)
A group of boys on the south side of Chicago in a Depression-era photo.(REUTERS)
Residents survey the damage following a tornado in 1936 Gainesville, Georgia.(REUTERS)
Workers cutting lettuce in 1935 Salinas, California.(REUTERS)
Residents await rations in 1937 Louisville, Kentucky.(REUTERS)
Snowbanks in Woodstock, Vermont in a Depression-era photo.(REUTERS)
A roadside stand in 1936 Birmingham, Alabama.(REUTERS)
Two men hitchhike towards Los Angeles in a 1937 photo. (REUTERS)
This is a result of the miss management of the resource and over production of good than required and soon every thing turned to a chaos.
I can relate the 1929 crissi and 2008 credit crisis are same, cause due to over optimisum and speculative production of good and serivces above the required range.In 1929, production was due to hope that world war wil end soon and will be able sell good at some point. But present senario is same in optimisum tided to over seculisation of risky assets, but this is done with a greed to earn more which lead to mismangement of lending huge sum of dollars to the potentially week customer.
From this, I can only observe one thing greed when overtakes disciplain and potential to bear loss over a limit will cause havoc not only for one but its a suffering for those who are connected to it.
One more interesting differnce in 1929 and present 2008 is the economies are interconnected and if one collapse all will collapse, and recovery time will be more than 1929's but stimulus to the ecomomy will work for a short term but for a long term stimulus there must be an overall balance to be maintained my the regulators.
And most peculiar thing in present 2008 is the country which taught capitalism to whole world and converted other ecomomies to capitalitic is now using the socialist methods to save its economy which put the existance of other economies at a grim future.
Above all is just by the intensity seen until now but the dust has to settle and there will be pannic run which will give little clear picture for the damage(recession).
