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To: bucky89 who wrote (53247)	8/31/1998 11:54:00 AM
From: Thomas M.	Read Replies (1) \| Respond to of 61433

You are changing the subject to policy decisions made after the 1929 crash, which exacerbated the Depression. Originally you were talking about the characteristics of the boom period, saying that such a boom have not spawned a big bear market. I'm saying the conditions in the 1990s mirror the 1920s. Both booms were characterized by remarkably low inflation that confounded experts, low unemployment, low interest rates, and tremendous corporate profit growth. Notably, both booms were preceded by a strong inflationary period. BTW, the Fed did cut monetary policy loose after its initial mistake of tightening. Just like in Japan in the 1990s, no amount of money printing by the Fed was enough too get money supply to expand. Regarding productivity growth, you are mistaken. Today's benefit might be the word processor vs. the typewriter. The improvement of the 1920s was a little thing called electricity. Which would you call a quantum leap? Tom

To: bucky89 who wrote (53247)	8/31/1998 9:28:00 PM
From: Joseph G.	Read Replies (1) \| Respond to of 61433

Which textbook you found this crap in? - pure fantasies. <<I think you'd better check your textbooks. The Great Depression was caused by improper fiscal policy by the Federal Government. Since the US currency was fixed on a gold standard at the time, there was no such thing as inflation. Unemployment was much higher, and in response to a slowing economy the Government cut back fiscal spending in order to maintain a balanced budget. This in turn caused more unemployment which led to an even slower economy, and more spending cutbacks, which led to...a spiraling effect. The spiral was not broken until FDR started massive deficit spending to jump-start the economy and shock it back to life. I don't think we have the same conditions today--far from it. In the event of economic slowdown, the Fed has all the power it needs to cut loose its monetary policy. In fact, if anything, the US economy today is in danger of overheating rather than slowing down. However, inflation and interest rates are held low due to weak currencies overseas. If anything, we have the opposite of the conditions which started the 1929 Great Depression.>>