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Pastimes : Ask Mohan about the Market -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (9774)	11/29/1997 5:44:00 PM
From: Monty Lenard	Respond to of 18056

To All **** Check these headlines from New York Time in 1929 sac.uky.edu sac.uky.edu God, I love this one. Saturday, October 26, 1929, Page 2, Col. 5 CAUTION ADVISED BY STOCK BROKERS Letters to Clients Warn Against Hysterical Selling and Favor Some Buying ---------- TONE IS OPTIMISTIC ---------- Narrow Trading is Predicted for a Time Till the Market Recuperates -------------------------------------------------------------------------------- Friday, November 1, 1929, Page 3, Col. 3 SISSON DECRIES INFLATION Lays Crash to Small Investors' Lack of Experience And how about this----- The Stock Market Crash of 1929, in terms of sheer price drop, was not the largest crash the stock market has sustained. "Black Monday" in 1987 was considerably larger. The Crash of '29 did not even cause the great depression. It was as much an effect of the economic instability that did cause the Depression as the Depression itself. There was ample warning of the coming fall - warning that may have actually contributed to the panic. There was blind folly - like the predictions of Professor Irving. And there were attempts during and after the panic to remind investors that the state of the stock market was not necessarily tied to the state of the economy. But as one of the landmark events of the century, it stands as a monument to the human "herd instinct" and to the dangers of greed and folly. Fisher, Prof. Irving Professor of Economics, Yale University. Professor Irving was quoted many times in the Times predicting continued high prices and growth in the market. He was wrong. Quotes from October 22, 1929 Article "He dismissed yesterday's break in the market as a 'shaking out of the lunatic fringe that attempts to speculate on margin.'" "During the next few weeks, he predicted a 'ragged market, returning eventually to further steady increases.'" Note that these statements were made two days before the crash.