October 29, 2002
ON THE OTHER HAND:
STOCKS COLLAPSE IN 16,410,030-SHARE DAY, BUT RALLY AT CLOSE CHEERS BROKERS; BANKERS OPTIMISTIC, TO CONTINUE AID
(NY Times, October 30, 1929)
From every point of view, in the extent of losses sustained, in total turnover, in the number of speculators wiped out, the day was the most disastrous in Wall Street's history. Hysteria swept the country and stocks went overboard for just what they would bring at forced sale.
Thus began seventy awful years
Posted by Orrin Judd at October 29, 2002 9:44 PM
A New Hampshireman should know that the depression for farmers (40% of the people then) began in 1922.
The so-longed-for conservative government, which depended for its support mainly on corrupt city machines, didn't react.
But, hey, when the conservatives regain the ascendancy, we can go back and rip out the electric lines and the indoor plumbing.
Hoover reacted with vigor, exploding the federal budget and worsening the situation.
He didn't do anything for the farmers.
In economics, I follow Tugwell. The problem
at the time was reflation, and it conceivably
could become so again, if not for the U.S.
then for some other big economies.
Reflation is not something people worry about
much, but it is more intractable than inflation
and some other bogeymen.
Globally, reflation already is a big problem for
smaller economies. Argentina, for example.
It is not likely to get solved, either, since nobody
is trying to solve it. This gets back to the
bananas I mentioned the other day.
I also quarral factually with your statement.
The RFC was too small, moved too slowly
to have much effect, one way or the other.