Comparative analysis of the 1929 crisis and global economic crisis of 2008

2008 Global Economic Crisis, which arose from the deepening of the panic that began in mortgage credit market in 2007 and attained a global magnitude, due to the characteristics of appearance, is likened to the Great Depression by many of the economists, and with the start of the 2008 Global Economic Crisis, the question ?Will the same depression be lived again that was experienced in the 1930?s?? was moved to top of the agenda. Even if both crisis are similar from the point of the appearance characteristics, they differ significantly in the precautions that were taken against them.Both Crisis have similarities and differences, and a comparative analysis of the Great Depression and the 2008 Global Economic Crisis, forms the major axis of this thesis. In this thesis, a detailed analysis of the process of the emergence, development and deepening of both Crisis, and a comparison of similarities and differences is aimed.Macroeconomic data related to the 2008 Global Economic Crisis resembles the data of the Great Depression. Moreover, since both crisis have originated in the USA, and then turned into a global crisis, involving a dangerous activity of banks and financial institutions before the outbreak of both crisis, existence of inadequate regulation and supervision, increasing supply of securitized assets in the USA, and hence, the occurence of a speculative boom form other similarities between two Crisis.Before the Great Depression period, the speculative actions that were caused by the investment of the investors to the stock market with borrowed money, shows itself in the 2008 Global Economic Crisis as a diffusion of the derivative products to the whole system that are deduced from mortgages without any inspection.Key Words:1- Great Depression,2- 2008 Global Economic Crisis,3-Mortgage Credit,4- Deflation,5- New Deal Policies.