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
Comments

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.

Posted by: Harry at October 30, 2002 5:58 PM

Hoover reacted with vigor, exploding the federal budget and worsening the situation.

Posted by: oj at October 30, 2002 6:07 PM

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.

Posted by: Harry at October 30, 2002 11:18 PM

http://www.juddtech.com/index.cfm/fuseaction/reviews.detail/book_id/386

Posted by: oj at November 1, 2002 11:41 AM
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