It's difficult to compare this recession cycle to previous, largely because we have such a globalized economy right now. The "Great Depression" was categorized not so much by it's instantaneous down-turn in markets, but by its length-- nearly a decade of depressed growth. Also, the crash of 1929 was not quite so systemic in terms of worldwide ramifications; today, markets are so intertwined, that (unlike in the Great Depression) what happens here is VERY likely to affect markets in Europe, Asia, etc. (We see this trend with the banking bailouts, the majority of toxic investments being here, stateside on the US.) In this current cycle, we have AT LEAST had a more proactive group of world leaders, looking to stem the tide against recession; that is something lacking in previous recession cycles.
Percentage-speaking, recent downturns don't compare to the Black Monday of October 1987, but I would have to say, markets are at an all time high in terms of volatility. The VIX tracks market volatility, it's one indicator of market health, and in one month, the indice jumped 189%-- not a good thing. Nobody is truly confident right now, and for the past weeks, markets have operated completely outside of fundamentals, and instead on consumer psycholology-- a dangerous ground to be on. Either way, previous crises such as the savings and loan of 1990 and the crash in 1987 just don't seem to have the same gravity of this financial crisis. I'm not saying this is the worst in our generation necessarily, but that the fundamentals are SO VERY different from anything we've seen before. And that sentiment comes not only from me, but from relatives who have actually lived through the Great Depression.
Personally, I don't think we will be in for as long of a protracted growth as in the 1930's, but a global slowdown seems imminent. That said, save some extra cash, be prudent in your spending, and start buying into the markets. I know I'm buying right now as opposed to selling...It's the only logical thing to do.
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