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To: Mark Marcellus who wrote (405)	2/16/2002 10:05:56 AM
From: Ilaine	Respond to of 443

Yes, tight credit did cause the crash of the stock market in 1929 - which was a deliberate act by the Fed. I thought I'd posted excerpts from a speech by the President of the NYSE, who was not at all happy about it, given at the Annual Dinner of the Chicago Stock Exchange, on May 9, 1929. They wanted to curb speculation - his point, which I think is perfectly valid, is that it's almost impossible to tell in advance which investments are speculative and which are sound, because almost all Iif not all) business activity has a speculative element. OK, but if you look at monthly economic data, other than the price of stocks on the stock market, the crash was not that big a deal. It appears to me, looking at monthly data, that things started to go to hell around April-May, 1930.