Historians most often attribute the start of the Great
Depression to the sudden and total collapse of US stock market
prices on October 29, 1929, known as
Black
Tuesday.
[1
]However, some dispute this conclusion, and see the stock
crash as a symptom, rather than a cause of the Great Depression.
[3
][9
]Even after the
Wall
Street Crash of 1929,
optimismpersisted for some time;
John D.
Rockefellersaid that "These are days when many are discouraged.
In the 93 years of my life, depressions have come and gone.
Prosperity has always returned and will again."
[10
]The stock market turned upward in
early 1930, returning to early 1929 levels by April, though still
almost 30% below the peak of September 1929.
[11
]Together, government and business actually spent more in the
first half of 1930 than in the corresponding period of the previous
year. But consumers, many of whom had suffered severe losses in the
stock market the previous year, cut back their expenditures by ten
percent, and a severe drought ravaged the agricultural heartland of
the USA beginning in the summer of 1930.
By mid-1930, interest rates had dropped to low levels, but
expected
deflationand the reluctance of people to add new debt by
borrowing, meant that consumer spending and investment were
depressed.
[12
]In May 1930, automobile sales had declined to below the
levels of 1928. Prices in general began to decline, but wages held
steady in 1930; but then a
deflationary spiralstarted in 1931. Conditions were worse in
farming areas, where commodity prices plunged, and in mining and
logging areas, where unemployment was high and there were few other
jobs. The decline in the
US
economywas the factor that pulled down most other countries at
first, then internal weaknesses or strengths in each country made
conditions worse or better. Frantic attempts to shore up the
economies of individual nations through
protectionistpolicies, such as the 1930 U.S.
Smoot–Hawley Tariff Actand retaliatory tariffs in other
countries, exacerbated the collapse in global trade. By late in
1930, a steady decline set in which reached bottom by March
1933.
I am puzzled by some of the comments here. It's not "what
we want". What we want is IRRELEVANT to what may or may not
happen! reality check: we as individuals are ants in the land
of dinosaurs! All we can do (IMHO, should do) is to keep our
eyes open and make the most of the opportunities that may come our
way.
How many of us have an ARMAGEDDON PLAN? Would you know
what to do if there is indeed a total market or societal
meltdown? Think about it, if anybody could have even half
predicted what transpired during Oct 2008 - March 2009, and taken
appropriate action, they would be retired and living "happily ever
after". Yes, it CAN happen again! Am I prepared?
YOU BETCHA!
Posted by pthoreson on 16th of Apr 2010 at 03:04 pm
"Think about it, if anybody could have even half predicted what
transpired during Oct 2008 - March 2009, and taken appropriate
action..." I DID! "they would be retired" I SHOULD HAVE!" and
living "happily ever after"." I WILL STILL....ONE DAY!
Posted by rgoodwin on 16th of Apr 2010 at 02:28 pm
Sethbru - How do you interpret my post of wikipedia info as
wishing a great depression on the country - or did you maybe just
click on an easy post to the topic. I voiced not a single opinion
about anything here. Gee - nice!
I definitely do not think a 1930's depression would happen
again.A liquidation of malinvestment would be just a cleansing.I
don't envisage soup lines and the like when half the world owns 2
cars per family and a couple of investment properties...get rid of
the greed and start again.Encourage saving,family values and living
within your means IMO.
Posted by jdaswani on 16th of Apr 2010 at 01:04 pm
Are you sure you want a repeat of that? Like your self I have
been positioned more cautiously in the markets but the
ramifications beyond the market can be drastic. Realestate
collapses, families homeless, crime skyrocketing etc. I most
definetly would like to profit on the coming pullback its just I
fear this leg down will be more painful for all of us. Even if we
profit from this doomsday scenario we all suffer in other parts of
life. Hardships to friends, family always spillover in the end. So
do we want a repeat? I hope not but I fear its inevitable.
Posted by hurricanemalta on 16th of Apr 2010 at 01:18 pm
I do not view a market crash and across the board liquidation of
assets as bad.We need it.Presently we live in a world where saving
is not rewarded and asset bubbles are the name of the
game.Liquidation of all the bad investments made in the last decade
is a good thing IMO.I don't believe that families have to go
homeless....families can live with other family members..that IMO
is a good thing for society..that is getting back a sense of
community and family.So I don't care about my profit scenario at
all ..I want to see all the malinvestment liquidated and
although I don't favour hardship on anyone I also don't favour
hyperinflation on savers either.
So basically we have had a rally and solved nothing..GS has made
money but my parents now get zero return on their savings but GS
makes billions by betting with cheap credit...bring on the crash I
say and lets reset the system and society for that matter.We can
have a better world than this one.I am sick of living in world full
of greed and deception.
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Wikipedia and the great depression Interesting...I added the RED
Posted by rgoodwin on 16th of Apr 2010 at 12:44 pm
Start of the Great Depression
Historians most often attribute the start of the Great Depression to the sudden and total collapse of US stock market prices on October 29, 1929, known as Black Tuesday. [1 ] However, some dispute this conclusion, and see the stock crash as a symptom, rather than a cause of the Great Depression. [3 ] [9 ] Even after the Wall Street Crash of 1929, optimismpersisted for some time; John D. Rockefellersaid that "These are days when many are discouraged. In the 93 years of my life, depressions have come and gone. Prosperity has always returned and will again." [10 ] The stock market turned upward in early 1930, returning to early 1929 levels by April, though still almost 30% below the peak of September 1929. [11 ] Together, government and business actually spent more in the first half of 1930 than in the corresponding period of the previous year. But consumers, many of whom had suffered severe losses in the stock market the previous year, cut back their expenditures by ten percent, and a severe drought ravaged the agricultural heartland of the USA beginning in the summer of 1930.
By mid-1930, interest rates had dropped to low levels, but expected deflationand the reluctance of people to add new debt by borrowing, meant that consumer spending and investment were depressed. [12 ] In May 1930, automobile sales had declined to below the levels of 1928. Prices in general began to decline, but wages held steady in 1930; but then a deflationary spiralstarted in 1931. Conditions were worse in farming areas, where commodity prices plunged, and in mining and logging areas, where unemployment was high and there were few other jobs. The decline in the US economywas the factor that pulled down most other countries at first, then internal weaknesses or strengths in each country made conditions worse or better. Frantic attempts to shore up the economies of individual nations through protectionistpolicies, such as the 1930 U.S. Smoot–Hawley Tariff Actand retaliatory tariffs in other countries, exacerbated the collapse in global trade. By late in 1930, a steady decline set in which reached bottom by March 1933.
I am puzzled by some
Posted by sniper on 16th of Apr 2010 at 02:37 pm
I am puzzled by some of the comments here. It's not "what we want". What we want is IRRELEVANT to what may or may not happen! reality check: we as individuals are ants in the land of dinosaurs! All we can do (IMHO, should do) is to keep our eyes open and make the most of the opportunities that may come our way.
How many of us have an ARMAGEDDON PLAN? Would you know what to do if there is indeed a total market or societal meltdown? Think about it, if anybody could have even half predicted what transpired during Oct 2008 - March 2009, and taken appropriate action, they would be retired and living "happily ever after". Yes, it CAN happen again! Am I prepared? YOU BETCHA!
"Think about it, if anybody
Posted by pthoreson on 16th of Apr 2010 at 03:04 pm
"Think about it, if anybody could have even half predicted what transpired during Oct 2008 - March 2009, and taken appropriate action..." I DID! "they would be retired" I SHOULD HAVE!" and living "happily ever after"." I WILL STILL....ONE DAY!
you can see the beginning of the rollover mid April on the graph so no doubt the date I read about was on the money.
Posted by hurricanemalta on 16th of Apr 2010 at 12:52 pm
So you wish a Great
Posted by sethbru on 16th of Apr 2010 at 01:22 pm
So you wish a Great Depression on the country so you can make a few bucks. Shame on you.
Sethbru
Posted by rgoodwin on 16th of Apr 2010 at 02:28 pm
Sethbru - How do you interpret my post of wikipedia info as wishing a great depression on the country - or did you maybe just click on an easy post to the topic. I voiced not a single opinion about anything here. Gee - nice!
I don't wish a depression but a cleansing of this greed culture..read my further post below
Posted by hurricanemalta on 16th of Apr 2010 at 01:34 pm
I definitely do not think a 1930's depression would happen again.A liquidation of malinvestment would be just a cleansing.I don't envisage soup lines and the like when half the world owns 2 cars per family and a couple of investment properties...get rid of the greed and start again.Encourage saving,family values and living within your means IMO.
Are you sure you want
Posted by jdaswani on 16th of Apr 2010 at 01:04 pm
Are you sure you want a repeat of that? Like your self I have been positioned more cautiously in the markets but the ramifications beyond the market can be drastic. Realestate collapses, families homeless, crime skyrocketing etc. I most definetly would like to profit on the coming pullback its just I fear this leg down will be more painful for all of us. Even if we profit from this doomsday scenario we all suffer in other parts of life. Hardships to friends, family always spillover in the end. So do we want a repeat? I hope not but I fear its inevitable.
Frankly I think the system needs to be cleansed..
Posted by hurricanemalta on 16th of Apr 2010 at 01:18 pm
I do not view a market crash and across the board liquidation of assets as bad.We need it.Presently we live in a world where saving is not rewarded and asset bubbles are the name of the game.Liquidation of all the bad investments made in the last decade is a good thing IMO.I don't believe that families have to go homeless....families can live with other family members..that IMO is a good thing for society..that is getting back a sense of community and family.So I don't care about my profit scenario at all ..I want to see all the malinvestment liquidated and although I don't favour hardship on anyone I also don't favour hyperinflation on savers either.
So basically we have had a rally and solved nothing..GS has made money but my parents now get zero return on their savings but GS makes billions by betting with cheap credit...bring on the crash I say and lets reset the system and society for that matter.We can have a better world than this one.I am sick of living in world full of greed and deception.