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

To: ayn rand who wrote (89230)	7/30/2009 3:37:36 PM
From: Elroy Jetson	Read Replies (1) \| Respond to of 94695

You are completely wrong that nothing was done to fix the post WW-I slump. This is a laughably false history. During WW-I prices rose sharply. This led farmers and manufacturers around the world to take on huge debts in order to expand their production. When WW-I ended prices collapsed leaving farmers and manufacturers unable to pay their massive debts. The response by the Fed and other central banks was pure Alan Greenspan. Lower interest rates and make credit freely available. A 1920s version of "quantitative easing". This created a bubble in real estate and stock prices - the roaring twenties. Yet while speculation was roaring, farmers and manufacturers around the world continued to go bankrupt, because cheap credit helped but didn't fix their problem. Eventually these failures led to the collapse of major banks and an implosion of the real estate and stock market bubbles. Sound familiar? If nothing had been done to avoid the post-WW-I depression, the world would have avoided the Great Depression by experiencing a smaller depression beginning in 1919 - the one you thought was more serious, but actually wasn't. If only history had conformed to your false memory, the Great Depression of the 1930s would not have occurred. .