1.1. This chapter discusses how an understanding of adverse selection and moral hazard can help us better understand financial crises. The greatest financial cri- sis faced by the United States was the Great Depres- sion of 1929-1933. Go to www.amatecon.com/ greatdepression.html. This site contains a brief discus- sion of the factors that led to the Great Depression. Write a one-page summary explaining how adverse selection and moral hazard contributed to the Great Depression.