This vs. Great Depression

[Dequeant]

That other thread with the quotes from the depression got me thinking....

How did the stock market act just prior to the great depression......?

he Roaring Twenties was a time of prosperity and excess in the city, and despite warnings against speculation, many believed that the market could sustain high price levels.

In the days leading up to Black Thursday, the market was severely unstable. Periods of selling and high volumes of trading were interspersed with brief periods of rising prices and recovery.

The crash followed a speculative boom that had taken hold in the late 1920s, which had led hundreds of thousands of Americans to invest heavily in the stock market, a significant number even borrowing money to buy more stock. By August 1929, brokers were routinely lending small investors more than 2/3 of the face value of the stocks they were buying.

The rising share prices encouraged more people to invest; people hoped the share prices would rise further. Speculation thus fueled further rises and created an economic bubble.

The failure set off a worldwide run on US gold deposits (ie, the dollar), and forced the Federal Reserve to raise interest rates into the slump. Some 4,000 lenders were ultimately driven to the wall.

Seems like they had a stock bubble extremely similar to our housing bubble, and also ignored warnings about speculation. The dollar is no longer linked to gold, so they'll be no run on our gold.......quite the opposite. Since the strength of our economy is what basically backs our currency, when we start defaulting on debt they'll be dumping dollars........ The dollars will drop to zero (or just above), the Fed will be forced to raise interest rates to try and combat inflation, businesses and industry will outright fail, and the rest reads like the book of revelation.

 

[ChooseLiberty]

If this bubble crashes it'll be worse than the 1930's adjusted for modern technology of course.

That's why the Fed/Gvt have the USA by the ying yang at this point.

Just go find a chart of the total debt for the past 100 years.

BTW. Heard the total consumer debt just passed the GDP - just like 1920's.

 

[Nanerbeet]

The difference between then and now is back then those responsible for this mess jumped out the windows and fell to their deaths. Today they are landing safely with their golden parachutes.

 

[acptulsa]

The difference between then and now is back then those responsible for this mess jumped out the windows and fell to their deaths. Today they are landing safely with their golden parachutes.

Oh, there's another difference.

In 1929 the nation was debt-free and had excellent credit.

 

[Dr.3D]

...... and the rest reads like the book of revelation.

I would have to say, you may be spot on with that.

 

[Truth Warrior]

Bernanke: Federal Reserve caused Great Depression
Fed chief says, 'We did it. … very sorry, won't do it again'
http://www.worldnetdaily.com/index.php?fa=PAGE.view&pageId=59405



"It's deja vu, all over again" -- Yogi Berra

"Those who do not learn from history, are condemned to repeat it."

 

[CUnknown]

Oh, there's another difference.

In 1929 the nation was debt-free and had excellent credit.

Yeah. If I am understanding this right, the level of debt the US currently has means there is no real seeable bottom to how far things could fall if it gets out of control. At least in 1920 there was an industrial base and a credit base that caught us.

I hate the bailout as much as anyone, but I swear I am frightened as to what could happen if they don't do it. I think there could be terrifying levels of debt deflation waiting for us if they don't do the bailout, just days or weeks away. I mean imagine... everything disappears except for what is real in our economy.. How much would we be left with? It's like the Onion says, we need to find a new bubble, quick! Any bubble will do! It's completely absurd, but that's where we are... it's like, shoot the economy now or later, when would you like your horrible death? Can we really blame Bush and Congress for answering: "Um...later?"

 

[acptulsa]

I hate the bailout as much as anyone, but I swear I am frightened as to what could happen if they don't do it. I think there could be terrifying levels of debt deflation waiting for us if they don't do the bailout, just days or weeks away. I mean imagine... everything disappears except for what is real in our economy.. How much would we be left with? It's like the Onion says, we need to find a new bubble, quick! Any bubble will do! It's completely absurd, but that's where we are... it's like, shoot the economy now or later, when would you like your horrible death? Can we really blame Bush and Congress for answering: "Um...later?"

The only thing is, will the bailout help one bit? I mean, of course it will help the brokers pay off their Ferraris, but will it help the economy one bit? Isn't seven hundred billion a lot to pay for one month's reprieve?

 

[Truth Warrior]

http://rexcurry.net/fascism=socialism.html

 

[slacker921]

Take a look at the first two charts here also notice the chart showing the PPT channel..

 

[freelance]

Yeah. If I am understanding this right, the level of debt the US currently has means there is no real seeable bottom to how far things could fall if it gets out of control. At least in 1920 there was an industrial base and a credit base that caught us.

I hate the bailout as much as anyone, but I swear I am frightened as to what could happen if they don't do it. I think there could be terrifying levels of debt deflation waiting for us if they don't do the bailout, just days or weeks away. I mean imagine... everything disappears except for what is real in our economy.. How much would we be left with? It's like the Onion says, we need to find a new bubble, quick! Any bubble will do! It's completely absurd, but that's where we are... it's like, shoot the economy now or later, when would you like your horrible death? Can we really blame Bush and Congress for answering: "Um...later?"

I know--TULIPS!

Here's the practical problem with the bailout--never mind all the real reasons I'm against it--we have no reasonable expectation that it will work. Some say, try anything. Oh, sure, that's easy to say with OPM!

I have an idea for you. Let those who created this monster for all of us pool their massive personal wealth to pull us out of the mess that they personally created.

 

[freelance]

The only thing is, will the bailout help one bit? I mean, of course it will help the brokers pay off their Ferraris, but will it help the economy one bit? Isn't seven hundred billion a lot to pay for one month's reprieve?

I believe it's 800 billion at any one time, BUT it's a revolving credit account. There IS no ceiling. Oh wait, but they'll only use what they need. Sound familiar? Had enough?

 

[Truth Warrior]

Thomas Jefferson quotes:

We must not let our rulers load us with perpetual debt. We must make our election between economy and liberty or profusion and servitude. If we run into such debt, as that we must be taxed in our meat and in our drink, in our necessaries and our comforts, in our labors and our amusements, for our calling and our creeds...[we will] have no time to think, no means of calling our miss-managers to account but be glad to obtain subsistence by hiring ourselves to rivet their chains on the necks of our fellow-sufferers... And this is the tendency of all human governments. A departure from principle in one instance becomes a precedent for[ another]... till the bulk of society is reduced to be mere automatons of misery... And the fore-horse of this frightful team is public debt. Taxation follows that, and in its train wretchedness and oppression.

 

[acptulsa]

Thomas Jefferson quotes:

We must not let our rulers load us with perpetual debt. We must make our election between economy and liberty or profusion and servitude. If we run into such debt, as that we must be taxed in our meat and in our drink, in our necessaries and our comforts, in our labors and our amusements, for our calling and our creeds...[we will] have no time to think, no means of calling our miss-managers to account but be glad to obtain subsistence by hiring ourselves to rivet their chains on the necks of our fellow-sufferers... And this is the tendency of all human governments. A departure from principle in one instance becomes a precedent for[ another]... till the bulk of society is reduced to be mere automatons of misery... And the fore-horse of this frightful team is public debt. Taxation follows that, and in its train wretchedness and oppression.

I have emailed this to one so-called news organization, posted it on another website and given a copy to my boss so far this morning. I hereby nominate it for Quote of the Day and recommend it to you all for viral disbursement. Thanks, TW.

P.S. Don't forget to give ol' Tommie J his credit when you post it! That good brand will help it get attention!

 

[Truth Warrior]

I have emailed this to one so-called news organization, posted it on another website and given a copy to my boss so far this morning. I hereby nominate it for Quote of the Day and recommend it to you all for viral disbursement. Thanks, TW.

P.S. Don't forget to give ol' Tommie J his credit when you post it! That good brand will help it get attention!

You're welcome.

There's another more common relevant one somewhere, I'll see if I can find it again.

 

[wizardwatson]

Oh, there's another difference.

In 1929 the nation was debt-free and had excellent credit.

Oh, there's another difference.

In 1929 we didn't have the world's largest military in over 130 countries, with thousands of ICBM's, and submarine launchable "nukular" warheads.

This is my fear, that rather than shrinking our military and pulling back, the worlds watchdog (guard dog? eh, probably attack dog.) gets rabid.

 

[Truth Warrior]

 

[Truth Warrior]

"If the American people ever allow private banks to control the issue of their currency, first by inflation then by deflation, the banks and the corporations will grow up around them, will deprive the people of all property until their children wake up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs." -- T J



"The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks." -- Lord Acton

 

[moostraks]

Fantastic quotes truth warrior. Will send these out to my circle as well...

 

[Acala]

Difference

I think the biggest difference between now and 1929 is that now we have a fully fiat currency and the government has (or is about to get) all the mechanisms in place to inflate it at ANY rate they choose. That is why this will end with hyper-inflation rather than massive deflation.