Is history repeating itself?
"Politics in government will NEVER allow accurate information."
Herbert Hoover, U.S. President in 1929
"We will not have any more crashes in our time."
John Maynard Keynes in 1927
"There may be a recession in stock prices, but not anything in the nature of a crash.
Irving Fisher, leading U.S. economist in 1929
"Stock prices have reached what looks like a permanently high plateau. I do not feel there will be soon if ever a 50 or 60 point break from present levels, such as bears have predicted. I expect to see the stock market a good deal higher within a few months." Irving Fisher, Ph.D. in economics in Autumn, 1929
"For the immediate future, at least, the outlook (stocks) is bright."
Irving Fisher, Ph.D. In economics in early 1930
"The Wall Street crash doesn't mean that there will be any general or serious business depression ... For six years American business has been diverting a substantial part of its attention, its energies and its resources on the speculative game ... Now that irrelevant, alien and hazardous adventure is over. Business has come home again, back to its job, providentially unscathed, sound in wind and limb, financially stronger than ever before." Business Week, November 2, 1929
"I see nothing in the present situation that is either menacing or warrants pessimism ... I have every confidence that there will be a revival of activity in the spring, and that during this coming year the country will make steady progress."
Andrew W. Mellon, U.S. Secretary of the Treasury December 31, 1929
"While the crash only took place six months ago, I am convinced we have now passed through the worst - and with continued unity of effort we shall rapidly recover. There has been no significant bank or industrial failure. That danger, too, is safely behind us.
Herbert Hoover, President of the United States, May 1. 1930
"This crash is not going to have much effect on business."
Arthur Reynolds, Chairman of Continental Illinois Bank of Chicago, October 24, 1929
"We feel that fundamentally Wall Street is sound, and that for people who can afford to pay for them outright, good stocks are cheap at these prices."
Goodbody and Company market-letter quoted in The New York Times, Friday, October 25, 1929
"The end of the decline of the Stock Market will probably not be long, only a few more days at most."
Irving Fisher, Professor of Economics at Yale University - November 14, 1929
"Buying of sound, seasoned issues now will not be regretted"
E. A. Pearce market letter quoted in the New York Herald Tribune, October 30, 1929
"This is the time to buy stocks. This is the time to recall the words of the late J. P. Morgan ...that any man who is bearish on America will go broke. Within a few days there is likely to be a bear panic rather than a bull panic. Many of the low prices as a result of this hysterical selling are not likely to be reached again in many years.
R. W. McNeel - market anakyst - as quoted in the New York Herald Tribune, October 30, 1929
"Some pretty intelligent people are now buying stocks... Unless we are to have a panic - which no one seriously believes, stocks have hit bottom."
R. W. McNeal, financial analyst in October 1929
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Does anyone have a good chart covering period around 1929 crash to present?
As I recall, it took until mid-50's for market to reach 1929 pre-crash level.
Cheryl |
