In this case the stagnation was caused by a lack of banking regulations. Look up Glass-Steagall Act ( <a href="http:&#x2F;&#x2F;www.nytimes.com&#x2F;topic&#x2F;subject&#x2F;glasssteagall-act-1933" rel="nofollow">http:&#x2F;&#x2F;www.nytimes.com&#x2F;topic&#x2F;subject&#x2F;glasssteagall-act-1933</a> )<p>The act was repealed and banks blew up the economy - the same way they did in 1929.