The stock market crash of 1929 was the largest 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 went through became famous throughout the world. So when the financial disaster struck in 2007 and the housing bubble burst, many people proclaimed that the next “Great Depression” was approaching. In this article we will compare and contrast the characteristics of the financial crisis of the 1929s and the late 2000s. To achieve this, we will first examine the circumstances that caused the economic collapse of 1929. Second, we will examine how the economy reacted to the economic collapse and what actions were taken as a result. Third, we will explore the specific causes of the 2007 economic recession, allowing us to compare and contrast pre-recession periods. Fourth, we will analyze the lessons learned by the federal government during the Great Depression that led to the adoption of monetary or fiscal policies during the current economic crisis. Finally, we will conclude with a conversation about the main points of the economic downturn and look to the long term towards recovery. Capitalism “is an economic and political system in which a country's trade and industry are controlled by private owners for profit, rather than by the state (Marriam-Webster Dictionary).” Many other economic recessions occurred both before and after the 1929 stock market crash; however, the length and severity of the Great Depression made it the yardstick for every subsequent economic recession. But what caused the Great Depression has been a major debate. While many analysts will point to the collapse of the stock market... in the middle of the paper... the values ​​of bonds. Therefore, when the crisis hit, it wiped out the value of bonds and investors lost their money. The United States was not the only nation to experience economic problems during the 2007 economic crisis. In Europe, trade imbalances, particularly in exports produced by Germany's vast wealth, produced more credit than was required. This has led to easy access to cheap credit that can be used by other European countries within the Eurozone. Countries like Ireland and Spain have taken advantage of this credit by increasing consumer debt. Then, when the crisis hit, consumers began defaulting on their financial obligations. Compounding the problem was the lack of regulatory and accountability policies regarding liquidity from the European Central Bank, as such there was no system in place to manage the unique problems provided by the financial crisis..