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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: ayn rand who wrote (89228)	7/30/2009 3:14:55 PM
From: Elroy Jetson	Read Replies (1) \| Respond to of 94695

Central bank response around the world to the post WW-I depression created the credit bubble which caused the 1929 to 1939 economic depression. "Policy does not allow a choice between depression or no depression, but between depression now or a worse depression later. Inflation pushed far enough would undoubtedly turn depression into the sham prosperity so familiar from European postwar (WW-I) experience, and would, in the end, lead to a collapse worse than the one it was called in to remedy. For recovery is sound only if it does come of itself. For any revival which is merely due to artificial stimulus leaves part of the work of depressions undone and adds, to an undigested remnant of maladjustment, new maladjustment of its own which has to be liquidated in turn, thus threatening business with another worse crisis ahead." Harvard economist Joseph Schumpeter .

To: ayn rand who wrote (89228)	7/30/2009 4:19:14 PM
From: Hawk	Read Replies (1) \| Respond to of 94695

In that recession the government and FED did nothing and it lasted less than two years. In 1929 they got involved and it lasted 10 years.

To: ayn rand who wrote (89228)	7/30/2009 5:59:54 PM
From: Oblomov	Read Replies (1) \| Respond to of 94695

In part the lack of intervention in 1920-21 was due to the complete lack of any public appetite for it. Americans had had enough of Wilson's "wartime socialism", his nationalization of the railroads, and other affronts to liberty such as the Palmer Raids and Prohibition. Harding won on a campaign of "normalcy" in 1920, and the Democratic Party retrenched... its Klan wing (Wilson's base of support- to repay them, he banned blacks from federal civil service) lost out to its more urbane (classical) liberal wing: they nominated Governor Al Smith for President in 1924 and 1928. Smith was no less an anti-interventionist than Coolidge, and was certainly to the right of Hoover. Smith was a prominent member of the Liberty League in the 1930s. In contrast, Hoover never questioned the need for an unprecedentedly large state intervention following the 1929 crash.