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Technology Stocks : Discuss Year 2000 Issues -- Ignore unavailable to you. Want to Upgrade?

To: David Eddy who wrote (8655)	9/13/1999 7:53:00 AM
From: flatsville	Read Replies (1) \| Respond to of 9818

David-- Re: the following two questions-- >>>What was more causitive for the banks that collapsed? - withdrawals by small depositors? - withdrawals by large depositors? You've got a 50% chance of getting the answer right, so this doesn't show much of anything. So now the hard question... - when did the Federal Reserve know the answer?<<< I don't have a ready reference and frankly it is too early in the morning. My suspicion are--small depositors; post 1932-33 (perhaps much later.) Now, what do I win? (Hint: I need a new microwave.) (We seem to have strayed from the software measurement issue, no?)

To: David Eddy who wrote (8655)	9/17/1999 9:43:00 AM
From: flatsville	Read Replies (1) \| Respond to of 9818

David-- Re: this-- >>>A quiz question from the 1929 market collapse & follow-on bank failures (not necessarily directly related, but that's another issue)... What was more causitive for the banks that collapsed? - withdrawals by small depositors? - withdrawals by large depositors? You've got a 50% chance of getting the answer right, so this doesn't show much of anything. So now the hard question... - when did the Federal Reserve know the answer?<<< I still haven't found the answers. (Galbraith was no help, though I did learn something about the banking structure which contributed to the failures.) So what are the answers?

To: David Eddy who wrote (8655)	9/17/1999 11:32:00 AM
From: Hawkmoon	Read Replies (1) \| Respond to of 9818

Actually David... I was under the belief that the "hard money" policies of the Federal Reserve, in response to the '29 crash, created such a credit crunch that smaller banks no longer had the liquidity available to take on risk and underwrite loans. The resulting economic contraction lead to a belief that depositor money was no longer safe and gold started to be hoarded which eventually forced the Congress to confiscate the metal in anticipation of devaluing the US dollar by 60% in order to force savers to become investors and consumers once again. Kinda like what is currently happening in Japan. They call it a liquidity trap. Regards, Ron