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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: critical_mass who wrote (14683)	11/19/2008 3:55:49 AM
From: Don Earl	2 Recommendations Respond to of 71456

RE: "The stock market crash in the US had more to do with the rise of Hitler than the 1923-24 hyperinflation." The stock market crash of 1929 was the direct result of a credit bubble, just like today. In 1929, if you owned 1 share of stock, you could buy 10 more on margin (credit). Once an account was fully leveraged at 10 to 1, all it took was a 10% dip in values to wipe out the account. And, of course, once the margin calls were exercised, the stock was dumped, driving prices lower, taking out each successively over leveraged account like dominos. Whether it's stock or real estate, the results are the same. It isn't possible to run an economy on credit that isn't fully backed by assets.