The stock market collapse of 1929 was the greatest financial crisis the United States had ever experienced and marked the beginning of the "Great Depression." The Depression was disastrous for many American families and the suffering they endured was world famous. So when financial disaster struck in 2007 and the housing bubble burst, many people proclaimed the coming "Great Depression." In this article, we will compare and contrast the characteristics of the financial crisis of the 1929s and the late 2000s. To do this, we will first examine the circumstances that caused the economic collapse of the 1929s. Second, we We will examine how the economy reacted to the economic collapse and what measures were taken as a result. Third, we will explore the specific causes of the 2007 economic recession, allowing us to compare and contrast periods leading up to the recession. Fourth, we will analyze lessons learned by the federal government during the Great Depression that resulted in monetary or fiscal policies during the current economic crisis. Finally, we conclude with a conversation about the main points of the economic downturn and look at the long term towards recovery. Capitalism “is an economic and political system in which the commerce and industry of a country are controlled by private owners for profit, rather than by the state (Marriam-Webster Dictionary). » Many other economic downturns occurred before and after the stock market collapse of 1929; However, the length and severity of the Great Depression made it the measuring stick for all other economic downturns since. But the cause of the Great Depression has been the subject of much debate. While many analysts will point to the collapse of stock markets... middle of paper... the value of bonds. Therefore, when the crisis hit, the value of the bonds was wiped out and investors lost their money. The United States was not the only country to experience economic problems during the economic crisis of 2007. In Europe, trade imbalances, particularly in exports produced by Germany's immense wealth were producing more than credit than was necessary. This led to easy access to inexpensive credit that could be used by other European countries in the Eurozone. Countries like Ireland and Spain have taken advantage of this credit to increase consumer debt. Then, when the crisis hit, consumers began to default on their financial obligations. The problem was compounded by the European Central Bank's lack of regulatory policies and liquidity responsibilities. As such, no system was in place to manage the unique problems posed by the financial crisis..