this is 1929 repeating, page-296

This is a ridiculous thread!!

It was started & promulgated by those who have no idea about economics, and certainly know nothing about the 1929 Depression.

One basic fact:

From 1929, in just over 3 years the GNP of the US dropped 33%. From memory, the first year - straight after the stock market crash saw the GNP frop 14%.

Currently after one of the biggest stock market crashes in US history, their GNP is down 6.2% annualised. Thats bad, but nowhere even near 1929. It probably will be down again for the next year. Who knows the next. But even if the have a third GNP drop and a depression is officially called, it will NEVER reach the severity of 1929. The Hoover government made some shocking kneejerk decisions after the market crash. They let hundreds of banks fail and the money supply shrink by one-third, while they tried to balance the budget by cutting spending, raising taxes, and increasing tarriffs. This was tantamount to hosing a bushfire with petrol ... it crippled & nearly destroyed the US, and took them 10 years & a world war to recover!!

Even if the DOW was now to drop to 5000, I doubt we will see anywhere near the severity we have had over the last 12 months.

Of course, there is a worldwide economic crisis. Yes, this is a massive wake up call to the world's "fat cats" that they have to alter their ways. And for sure, we have more pain to come. But the immediate & collective efforts of the worlds developed countries will end up minimising the damage, and righting the ship ..... until the next time!!

;)