What are similarities between the 1929 stock market crash and the sub-prime mortgage crash today?

[Bob.Builder]

I have to write a social studies essay on the similarities between the 1929 stock market crash and the sub-prime mortgage crash.

I need 3 good points, and I have to expand on every one of them, so I would appreciate some detail. Great! Thanks a lot

[GeneralWiltsh]

Well this time we turned to a president for help instead of Mass rioting.................o wait thats exactly what happened both times

[easy_peasy]

alcapone and g.w.bush

[WarrenBB]

1. Both times, credit was easy to get.

In both times, people could borrow easily.

2 Both time, there was rampant speculation which created bubbles

In the 20's, the speculation was in stocks, which led to a huge bubble in the stock market. in the current period, the speculation was in housing, which led to a huge buble in the housing market.

3. In both cases, government regulation was weak.

In the 20's leading up to the crash, the two presidents were Warren Harding and Calvin Coolidge, both of whom essentially had the belief that they should to as little as possible. In both terms, the government regulation was weak, leading to poor decisions being made by the banks.

In the current times, George Bush believed very strongly in minimizing government regulation. Government regulatory agencies became do-nothing organizations, which allowed mortgage bankers to essentially create fraud, openly encouraging loan applicants to lie on their applications and developing products that they knew would kick people out of their homes and wreak financial devastation.