Forget 1929,look at 1873 instead

There have been many comparisons with the New York stock exchange crash of 1929 and the subsequent Great Depression of the 1930's.

Rather ominously though it may be more prudent to compare the crash with an earlier one in 1873.

Jennifer Lee at the New York Times certainly thinks so.Then

rampant real estate speculation culminated in a credit crunch, and banking failures that led to broad panic in the stock markets. That crash lasted more than four years.

Furthermore,the property bubble was based on a freeing of the credit markets which created rampant property inflation and new financial mechanisms were invented of which few people understood the principle.-sound familiar?
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Well the parallels are uncanny.The American government attempted to pump money in the failing bank system but its plan ultimately failed.Credit markets froze.

So what happened.Well it took 4-5 years for the economy to recover but not before a deep industrial recession that resulted in violent labour unrest.

Are we listening?