From very early on in 2008 I have thought that today's lead up events have still resembled the 1907 crash more closely than anything from the Great Depression period, especially when you start to look into the similarities and circumstances behind some of the strategies of the less publicly announced wealth transfers (little written in official recorded history and often covered over or 'lost' in newspapers, but can be found with a little work and fact checking). Many transactions and events of 1907 (and it's aftermath) seem to have been as a result of somewhat dubious, unfair, manipulative, or questionable situations and practises. It is also funny how the similar traditional banking and industrial complex family's names keep coming up as the main beneficiaries of these massive crashes and (potentially orchestrated) major asset transfers.
The after effects of massive expansion, easy credit and wild risk taking, followed by panic, collapse, failures, unemployment and a generally battered economy is pretty well similar for any major depression or economic upset I believe. It has the usual knock on effects on asset prices and effects as seen from the street level for the general public. With a lot of in-depth research on all aspects of various crashes in the past, it is clear to me at least, that the initial situation to cause this mess seemed to have stronger parallels to the high level strategies and power tactics played out in the 1907 period.
We will not see massive heights again quickly, but we will see significant rebounds in selected companies and sectors. The re-birth of selected 'refurbished' and Government sponsored industries and companies will help re-inflate and move markets forward again in time.
For starters, just take a look at the massive amounts being poured into infrastructure, renewal, etc, as part of the Obama initiatives already. A good look at who already owns a good majority of the expected beneficiary companies would make a very interesting study for sure! In this respect, the history of downturns and depressions always do repeat. The rest can and will work out as variations on historic themes.
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