Table of ContentsSummaryCrises, Consumption, Investment, and UncertaintyMonetary PolicyHousing and Financial CrisesConclusionSummarySeveral of today's financial crises can be compared to the Great Depression that was observed in 1928, with the similarities being based on the causes and effects of the two events. When comparing the two financial crises, it is important to analyze the role of consumption, investment and uncertainty in the economic conditions of the two periods. The two events are compared with respect to effects directly related to levels of investment and confidence in the economy. A comparison is made between the economic depression of 1928 and recent financial crises such as the 2008 financial crisis. While both crises are undoubtedly global, the analysis primarily concerns the United States due to the role that country has played. played in the financial crisis of 1928. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”?Get the original essayCrises, Consumption, Investment, and UncertaintyResearch indicates that financial crises share many fundamental characteristics, the main one being market collapses of assets. Market dips during financial crises are considered more pronounced in terms of depth and severity. Research also shows that real house prices as well as stock prices decline rapidly during times of financial crisis. The financial crisis of 1928 and the financial crises of today are all linked to a fundamental breakdown of the financial mechanism of the economy. The Great Depression and Recession of 1928 were times when credits came often. The Great Depression and the financial crisis of 2008 therefore share the same situation where overinvestment and overspeculation were much more serious since they were carried out with borrowed money. Borrowing money during the Great Depression period of 1928 and the financial crisis of 2008 led to the collapse of banks due to excessive borrowing of money for investment purposes (Presbitero, n.d.). The Great Depression of 1928 and the financial crisis of 2008 were characterized by overconfidence in the economy and poor policymaking. During 1928 and during the recent financial crises, growth can be described as speculative, thanks to a long period of economic prosperity. The United States, for example, had a stock market in 1928 that was experiencing dizzying developments. Stock prices and daily volume of shares traded continued to set records years later. It comes as a shock when a great economic depression is unexpectedly followed by an excessive boom. The same situation that was observed after the Great Depression period of 1928 has been found recently, where financial crises are followed by a sharp decline in consumption due to an excessive boom. Both periods are therefore associated with a very sharp decline in fixed investments as well as a sharp decline in stocks (James, 2013). Frankly speaking, recent financial crises show signs of declining consumer confidence and, as a result, consumers are showing less interest. by investing and purchasing goods and services. The Great Depression Period of 1928 was also characterized by a significant change in expectations, leading to a decline in consumer consumption. Periods of financial crisis in recent times have been characterized by goods not..