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To: Ilaine who wrote (81500)	3/16/2001 12:30:48 PM
From: Les H	Read Replies (1) \| Respond to of 436258

There was also a Florida real estate bubble of the mid-20s and Florida banking crisis that preceded the rest of the country by a good two years.

To: Ilaine who wrote (81500)	3/16/2001 12:34:56 PM
From: ahhaha	Read Replies (2) \| Respond to of 436258

Your statement that prices were stable in the 1920's is inaccurate. You're looking at the CPI - you need to look at commodity prices, especially agricultural prices. If you read closely, I mentioned that. Agricultural prices didn't reflect what you describe until 1926 as I stated. The farm erosion was gradual. The fact that 50% of Americans were still on the farm has little to do with the phenomenon of the '20s or the financial ramifications. What had occurred was due to a rapid transformation away from agrarian based economy to industrial based. The wealth was generated by industrial corporations and had been for 50 years. It was the blow to them that was the major effect of the actions of the FED and Congress which led the country into depression. The farm aspect is merely a sidelight and was due more to farmers abusing the land and weather than its connection to the national economy. With respect to whether or not the Fed instituted a tight money policy in 1929 - 1930 - take a look at the rate of bank clearings. That isn't necessary. They raised the call loan rate and re-discount rate in '28 and '29 in an effort to slow speculation because margin lending had exceeded money market liquidity. Since a lot of wealth was built on stocks the effect wasn't immediately felt. If the Fed/Treasury hadn't done that, it wouldn't have made much difference to stocks. The game had turned into a Ponzi Scheme. It's clear you're from a farm state.

To: Ilaine who wrote (81500)	3/16/2001 12:42:57 PM
From: ahhaha	Read Replies (2) \| Respond to of 436258

Concerning bank clearances, you are mistaking money supply with clearances. Clearance refers to activity level or turnover and you'll find a good correlation between the margin speculation driven stock market prices and level of clearances. You'll also find a very good correlation between margin debt and clearances. Clearances fell for the obvious reason that the crash cooled speculation and then fell more due to slowing of all kinds of economic activity. They also started rising before the stock market did in 1932.