“In the summer of 1929, the stock was sold at 20, 30 and 40 times more revenue. The action was divided and re-divided until the most talented accountants struggled to make rational calculations. To divide. All vigilance was lost, stocks were bought blindly, and good 4% or 5% bonds were ridiculed. “
The above is taken from Benjamin Ross’ book The Great Depression, Diary. Roth was a lawyer in Youngstown, Ohio, from the early 1920s to the 1950s. His diary note, published in 2009, details not only Youngstown, but also the Great Depression in the country and the Western world. A common thread in his diary during the period 1931-1941 was employment, frozen cash withdrawals from banks, the insanity of asset values in 1929, the food line and the FDR abolished the standard- gold in 1933. It was a potential inflation after having financed a certain number of alphabetic establishments.
“Over the past two months, all kinds of business activity has completely stabilized. Much worse than any time in the past two years. Even if creditors find it unnecessary to push debtors, bankruptcy is almost zero. “June 10, 1932.
“The Secretary of the Treasury will issue a new order that calls all the gold into the hands of the individual. It will be paid at the old price of 20.34 per ounce instead of the world market price of 36. ”December 28, 1933.
January 15, 1934: “A significant financial development has taken place today. President Roosevelt called on Congress to devalue gold coins from 50% to 60%. As a result, the government said, “Over $ 4 billion. Made immediate profit. “The Great Depression got worse and yesterday the stock market hit 1937 lows. Prices are back in 1934. March 25, 1938.
There are some similarities in economic, financial and market conditions between 1929 and 2008, including major speculation in asset and bank failures, as well as other factors. The subsequent results so far appear to be quite different, especially with stock and property market bubbles and interest rates. www.wallstreetonparade.com June 10, 2020: “December 2007: The Fed created a massive octopus rescue program for Mega Bank and its foreign derivative counterparts. The Fed then collapsed on Wall Street. The government fought for years in court to keep Congress and the public from learning of the astronomical amount the Fed spent to support the banks. The government fought the Fed on July 21, 2011. When the audit of the bailout program was finally announced, the total reached $ 16 trillion, but when the Levy Economics Institute added another Fed bailout program that the government audit bypassed. The actual tally reached $ 29 trillion. “
Add an additional $ 10-15 trillion to those numbers since the pension crisis and blockade of September 2019 (which we are already counting), and the trend starts to show. We have an economic / financial system as good as the government. Please tell me that’s not the case.
Consider the following: Over the past 15 years, M2 money supply has grown from $ 6.8 trillion to $ 20.2 trillion. US public debt rose from $ 8.3 trillion to $ 28.2 trillion, and gross domestic product (GDP) increased from $ 13.6 trillion to about $ 22 trillion. Viewed through the lens of history, this sounds like a recipe for imprinting on the road to stagnation, at best. Or maybe the real equivalent of the 1929 stock market crash awaits us. After all, if the money (probably) isn’t, but goods and services are finite, don’t you think the Greeks and Romans got it? This is exactly the opposite of what history has recorded.
As expected, future market turmoil will be filled with cash and credit easier than ever. The subtle difference between 1929 and 2008 and today is that Wall Street, with roughly $ 1.5 trillion in derivatives on its balance sheet, has learned to take advantage of speculation to portray 1929 traders as classified amateurs. Those who command to reach and grasp to identify these risks (ps please let us know) will give you more power, those who lack it are suspicious words.
As the man said, when it comes to the cultural side of the issue (the depressing subject), hard times make people difficult. On the contrary, let me suggest that you shouldn’t expect the Greatest Generation II right away. In fact, the critical “putting on the family table” theory may reappear.
Voices from the community: The Great Depression followed by the Biggest Generation | Community voice Source link Voices from the community: The Great Depression followed by the Biggest Generation | Community voice