Is there really going to be another wall street crash!?
Of course, there will be another Wall Street crash. It happens about every six to ten years to varying degrees. The reasons vary, but usually they are a response to a run-up in greed, and if this is really serious, corrective federal legislation usually follows. The Great Depression was triggered as a result of insider trading and highly leveraged stock positions. Cleaning up this mess took a long time, and resulted in three different Federal Acts. These Acts were responsible for much of the oversight that we have on banks and investment firms today (SEC, NASD, etc.), and also resulted in federal insurance for bank and investment accounts (FDIC, SIPC, etc.) In the 1980s, we had a crash caused by irresponsible lending by Savings and Loans or Thrift Banks. The Federal Government backed these institutions, and the government spent years unloading foreclosed properties through the Resolution Trust Corporation (RTC). The Internet bubble and 9/11 were responsible for a series of setbacks, an
