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To: engineer who wrote (88120)	11/22/2000 7:33:33 PM
From: Cooters	Respond to of 152472

<<The FED also blew it BIG time from 1930 until 1933. I think AG needs to go read some history lest he repeat it.>> A couple more major differences: - Massive contraction of free trade due to Smoot-Hawley tariffs, with accompanying retaliation from trading partners. - Extremely high marginal taxes, even more pronounced by the rapid escalation to those rates from 0% the decade before, when an amendment was required to initiate income taxes in the first place. I think the framers of the Constitution had it right the first time!! We could also get into what happened after 1932-1933, but that is a different argument. Cooters

To: engineer who wrote (88120)	11/22/2000 7:38:14 PM
From: marginmike	Read Replies (2) \| Respond to of 152472

Your right,but today's leverage in the system is almost extreme, albeit different. Hedge funds, derivitives, swaps etc have created leverage at a level similiar to 1929. I would alos mention that the personal level of debt per capita is way to high as well. The world economy is to highly based on credit and worthless assets. This is being unwound. I use 1929 as an example not because of the similarities in Macro econ but in the fact that it was a so called new ERA much like we have today. We had new technologies like Automobiles, Radio, Phonograghs etc which were spurning a revolution in productivity. These technologogies were revolutionary but werent able to forstall economic malaise.