Identify two similarities and two differences between the Great Depression and the global financial crisis of 2007–2009.

Great Depression: In the 1930s, several countries around the world experienced severe economic depressions - however, the Great Depression did not begin until 1929 in most countries.

Global financial crisis: Between 2007 and 2009, the global financial crisis imposed extreme pressure on international financial markets and banking systems.

Stock market crashes and bank panics led to the Great Depression. This worsened asymmetric information problems.

On the other hand, the global financial crisis of 2007-2009 was triggered by the mismanagement of financial innovations such as subprime mortgages and the bursting of the housing bubble.

The U.S. faced different results from these events as well.

The financial crisis did not lead to depression because of government intervention (such as President Obama's decision to bail out AIG) and aggressive actions taken by the Federal Reserve. In contrast, the financial crisis in 1930 led to the Great Depression.

Therefore, both of these financial crises had global impacts and affected the markets worldwide; other banks and financial institutions deteriorated. They also caused unemployment in the United States to skyrocket, worsening the state of the economy and making recovery difficult.