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To: pater tenebrarum who wrote (113478)	7/19/2001 1:39:28 PM
From: Box-By-The-Riviera™	Read Replies (1) \| Respond to of 436258

there's an episode of Upstairs Downstairs that portrayed the mania of the 20's market very well... ending in suicide and financial ruin. I cried a bit <g> Ultimately I believe that episode lead to the current lingering malaise now seen repeatedly in episodes of East Enders and the madness found in 3rd Rock from the Sun and the sheer boredom aroused by Love and Marriage. T.V. Nation

To: pater tenebrarum who wrote (113478)	7/19/2001 3:57:19 PM
From: Earlie	Read Replies (2) \| Respond to of 436258

Heinz:: Superb, concise commentary. Well done. Best, Earlie

To: pater tenebrarum who wrote (113478)	7/19/2001 4:47:33 PM
From: Ilaine	Read Replies (1) \| Respond to of 436258

That's quite a "nutshell." -g- I think I counted six different reasons, all happening at the same time, more or less, and sort of going off in different directions. Please forgive me if I say that your explanation doesn't really make it any easier to understand. If the different reasons are related, it needs to be shown how they are related. >>the Fed had of course no chance to avert the winter season of the K-wave, but it would not have turned into as bad a depression had it not financed the extreme speculative boom during the disinflationary autumn season<< How exactly did they do that? I just read in Richebacher that "the money supply grew only modestly. Between 1925-1929, broad money grew by no more than 10%, from $50 billion to $55.5 billion. Demand deposits at banks in late 1929, at $22 billion were no higher than in late 1925." gold-eagle.com I'm looking at a chart for the New York Fed discount rate, and I see it was raised three times in 1928, starting at 4% and ending at 5%, and then was raised again in 1929 to 6%. For most of '26 and most of '27 it was at 4%. And, as you say, commodities started to deflate first, in 1926, so the real interest rate was even higher. Some say that the US stock market boom began in June-September, 1927, when the Fed cut the discount rate from 4% to 3 1/2% for a few months, in order to assist the Bank of England in maintaining the pound at pre-WWI parity, but the Fed raised the rate back to 4% in early 1928. But in fact, the US stock market index rose 50% between April, 1925, when Britain returned to the gold standard, and August, 1927, when the NY Fed cut the rate to 3 1/2%. There was, indeed, an increase in credit. Richebacher says that "no statistics are available." I have no idea what an "autumn season" means in this context.