81. The Great Crash By Gwynne Dyer Monday Sept 24, 1979 LONDON The The crash of 1929 inaugurated the grim decade of the Great depression. The major economic advantage of the capitalist system renamed free enterprise http://www.gwynnedyer.net/articles/Gwynne Dyer article_ The Great Crash.txt

The Great Crash By Gwynne Dyer Monday Sept 24, 1979 LONDON: The ideal capitalist enterprise, it was once suggested, would be a brothel over a five- minute carwash. But all the best ways of making one’s capital multiply involve the owner no work at like the stock market. What goes up must come down, however, and 50 years ago next month Welt Street came down with a crash that still reverberates in Western memory. The Crash of 1929 inaugurated the grim decade of the Great Depression. In the United States, one quarter of the population was out of work by 1932. The gross National Product of the U.S. dropped by a third in four years, and it did not recover to its 1929 dollar value until 1941. Much the same happened in Europe, although rearmament - and so recovery - came earlier. Nor was what we now call the Third World spared: Most of the world lost a full decade of economic growth. Most historians also blame the Great Depression for Hitler’s rise to power in Germany and for Japan’s desperate grab for an economically self-sufficient empire in East Asia. On that reckoning, the Crash of 1929 also led eventually to the Second World War, - and so to the end of the European empires, the Soviet conquest of half of Europe and the Communist victory in China. Somehow it all seems much too large a result from the mere fact that the average value of industrial shares on the New York Stock Exchange declined by half between mid-September and mid-November of 1929. That is why the popular memory has embroidered and dramatized the events of late 1929. ‘Everyone’ in America was caught up in the speculative fever, we are told, and everyone lost their shirts when the crash came. The crash was supposed to have happened on a single day - most often called ‘Black Friday,’ October 24th - by the end of which ruined speculators were raining onto the sidewalks of New York in formation suicide leaps. The facts, as usual, are rather different. The total number of customers on all American stock exchanges in 1929 was only 1.5 million in a United States population which was then 120 mIllion. The panic of ‘Black Friday’ was over by the afternoon, and the market closed for the day only 12 points down. The suicide rate in New York in the autumn months of 1929 was no higher than normal. And yet the slow-motion Crash of 1929, beginning with a slight downward movement in stock values September 5 and accelerating into a sickening slide in late October, really did cause the Great Depression. The reason was that it came at the end of one of those mercifully rare bouts of specutative lunacy which leave hang-overs of historic proportions. The major economic advantage of the capitalist system - renamed free enterprise for propaganda reasons during the Cold. War - over the various models of centrally planned economies is its greater flexibility. But the flexibility comes from tens and hundreds of thousands of companies and individuals making independent decisions, which naturally also means unpredictability. And unpredictability inevitably brings speculation. Each individual’s business decisions depend on his estimate of what all the other individuals, and so the economy as a whole, will decideto do. The business cycle is basically a product of collective psychology, and the stock market is its most sensitive barometer. Normally the collective expectations of economic growth or recession move within quite narrow and rational limits, and so does the stock market. But once in a great while people will be seized by the belief that the expansion of the economy (or more precisely, the rise in the stock market prices) will be rapid, continuous and unlimited., In fact, only the most naive believe this literally. Insiders know that the rise in stock values must end some time, and plan to, sell out just before that moment. But since the whole momentum of the expansion is psychological, they must not give any hint by word or deed that they think this will ever happen for fear of breaking the spell and precipitating the collapse. When such a speculative fever hits the market (for reasons that would be best understood by lemmings), speculators will buy any stock, at any price - usually with a great deal of borrowed money (on margin) - in the belief that they will be able to sell it again in a few weeks or months at a far higher price. The true worth of a particular stock, or even what kind of enterprise it represents, entirely ceases to matter. Just before the first great crash of modern history, the South Sea Bubble of 1720, speculators willingly poured their money into, amongst other curiosities, a promotion ‘For an Undettaking which shall in due Time be revealed.’ The same get-rich quick psychology had taken over in1929, with expectations of infinite rises in stock prices. When the collapse came, as it eventually had to, the disillusionment was correspondingly deep and long lasting. The higher you rise, the farther you fall. By November 13, 1929, the prices of industrial stocks had fallen by half. There followed a brief recovery, but the decline then continued relentlessly until June, 1932, by which time the prices were on average only one-eighth of their value three years before. And it was the psychological hang-over of the Crash - the ever more deeply entrenched belief that things would go on getting worse - that made the Great Depression so deep and so long. Could it ever happen again? The human capacity to suspend disbelief under the goad of greed has certainly not diminished, as witness the ever green schemes for chain letters and pyramid selling. Stock markets are more closely regulated nowadays but that did not prevent utterly implausible but hugely successful promotions like Bernie Cornfeld s Investors Overseas Services (Do you sincerely want to be rich? ) in the late 1960s. The, main deterrent to another round of lunatic speculation like that before the Great Crash of 1929 is the memory of that event. In the present pessimistic economic climate it could not possibly happen. But some day the economic prospects may seem rosy again, and memory fades. Appreciation to Ronald Knowling, Assistant Manager - Central Division Provincial Information and Library Resources Board Gander, NL for the submission of this archive.

82. Teacher Resources - Feature - American Memory Timeline Great crash in October 1929 and the great economic depression that followed.The depression threatened people s jobs, savings, and even their homes and farms. http://memory.loc.gov/learn/features/timeline/depwwii/depwar.html

The Library of Congress home Overview Topics Wife of a Migratory Laborer Photographs from the FSA-OWI, The widespread prosperity of the 1920s ended abruptly with the stock market crash in October 1929 and the great economic depression that followed. The depression threatened people's jobs, savings, and even their homes and farms. At the depths of the depression, over one-quarter of the American workforce was out of work. For many Americans, these were hard times. The New Deal, as the first two terms of Franklin Delano Roosevelt's presidency were called, became a time of hope and optimism. Although the economic depression continued throughout the New Deal era, the darkest hours of despair seemed to have passed. In part, this was the result of FDR himself. In his first inaugural address, FDR asserted his "firm belief that the only thing we have to fear is fear itselfnameless, unreasoning, unjustified terror." As FDR provided leadership, most Americans placed great confidence in him. The economic troubles of the 1930s were worldwide in scope and effect. Economic instability led to political instability in many parts of the world. Political chaos, in turn, gave rise to dictatorial regimes such as Adolf Hitler's in Germany and the military's in Japan. (Totalitarian regimes in the Soviet Union and Italy predated the depression.) These regimes pushed the world ever-closer to war in the 1930s. When world war finally broke out in both Europe and Asia, the United States tried to avoid being drawn into the conflict. But so powerful and influential a nation as the United States could scarcely avoid involvement for long.

83. VOA Special English - THE MAKING OF A NATION - Stock Market Crash Of 1929 THE MAKING OF A NATION January 17, 2002 Stock Market crash of 1929 The stock market crash marked the beginning of the Great depression a long, http://www.manythings.org/voa/02/020117mn_t.htm

THE MAKING OF A NATION - January 17, 2002: Stock Market Crash of 1929 By David Jarmul VOICE 1: THE MAKING OF A NATION a program in Special English by the Voice of America. (Theme) The election of Republican presidential candidate Herbert Hoover in nineteen-twenty-eight made Americans more hopeful than ever about their future. In March nineteen-twenty-nine, Hoover rode down Pennsylvania Avenue in Washington in the rain to become the new president. "I have no fears for the future of our country," he told the cheering crowd. "It is bright with hope." Herbert Hoover seemed to have just the right experience to lead the nation to new economic progress. He had training in engineering, business, and national leadership. He understood economics and had faith in the future of private business. VOICE 2: The clearest evidence of the public's faith in the economy is the stock market. And the New York Stock Exchange reacted to the new president with a wild increase in prices. During the months after Hoover's election, prices generally rose like a rocket. Stocks valued at one-hundred dollars climbed to two-hundred, then three-hundred, four-hundred. Men and women made huge amounts of money overnight. Publications and economic experts advised Americans to buy stocks before prices went even higher. Time and again, people heard how rich they could become if they found and bought stocks for companies growing into industrial giants.

84. GALLERY SIX:The Great Depression Refusing to accept the natural economic cycle in which a market crash was Economists are still divided about what caused the Great depression, http://hoover.archives.gov/exhibits/Hooverstory/gallery06/gallery06.html

GALLERY SIX:The Great Depression Linked pictures are available for purchase. The worst disaster in American economic history began in October 1929. This gallery puts the Great Depression in historical context and details Hoover's early response to the crisis. Disaster in the Making As early as 1925, then-Secretary of Commerce Hoover had warned President Coolidge that stock market speculation was getting out of hand. Yet in his final State of the Union Address, Coolidge saw no reason for alarm. "No Congress...ever assembled has met with a more pleasing prospect than that which appears at the present time"...said Coolidge early in 1929. "In the domestic field there is tranquility and contentment...and the highest record of prosperity in years." Al Smith's campaign manager, General Motors executive John J. Raskob, agreed. In an article entitled "Everybody Ought to be Rich" Raskob declared, "Prosperity is in the nature of an endless chain and we can break it only by refusing to see what it is." President-elect Hoover disagreed. Even before his inauguration he urged the Federal Reserve to halt "crazy and dangerous" gambling on Wall Street by increasing the discount rate the Fed charged banks for speculative loans. He asked magazines and newspapers to run stories warning of the dangers of rampant speculation. Once in the office, the new president ordered a reluctant Andrew Mellon, his holdover secretary of the treasury, to promote the purchase of bonds instead of stocks. He sent his friend Henry Robinson, a Los Angeles banker, to convey a cautionary message to the financiers of Wall Streetand received in return a long, scoffing memorandum from Thomas W. Lamont of J.P. Morgan and Company. When the Federal Reserve Board that August did take steps to check the flow of speculative credit, New York bankers defied Washington, the National City Bank alone promising $100 million in fresh loans. An angry Hoover let the president of the New York Stock Exchange know that he was thinking of regulatory steps to curb stock manipulation and other excesses. Yet he undercut his own threat by placing ultimate responsibility for such measures on New York State's new governor, Franklin D. Roosevelt.

85. Stock Market Crash Of 1929 --  Encyclopædia Britannica Stock Market crash of 1929 American economic disaster that precipitated the GreatDepression, an approximately 10year economic slump affecting all the http://www.britannica.com/eb/article-9069750

Home Browse Newsletters Store ... Subscribe Already a member? Log in Content Related to this Topic This Article's Table of Contents Stock Market Crash of 1929 Print this Table of Contents Shopping Price: USD $1495 Revised, updated, and still unrivaled. The Official Scrabble Players Dictionary (Hardcover) Price: USD $15.95 The Scrabble player's bible on sale! Save 30%. Merriam-Webster's Collegiate Dictionary Price: USD $19.95 Save big on America's best-selling dictionary. Discounted 38%! More Britannica products Stock Market Crash of 1929 Page 1 of 1 also called The Great Crash, American economic disaster that precipitated the Great Depression , an approximately 10-year economic slump affecting all the Western industrialized countries. Stock Market Crash of 1929... (75 of 206 words) var mm = [["Jan.","January"],["Feb.","February"],["Mar.","March"],["Apr.","April"],["May","May"],["June","June"],["July","July"],["Aug.","August"],["Sept.","September"],["Oct.","October"],["Nov.","November"],["Dec.","December"]]; To cite this page: MLA style: "Stock Market Crash of 1929."

86. FRBSF: Economic Letter - Monetary Policy And The Great Crash Of 1929: A Bursting Economic Letter Index. Monetary Policy and the Great crash of 1929 A By thesecond quarter of 1929 it was apparent that economic activity was slowing. http://www.frbsf.org/econrsrch/wklyltr/wklyltr99/el99-10.html

The Federal Reserve Bank of San Francisco Research Publications Economists Research Centers Conferences ... Economic Data FRBSF Economic Letter 99-10; March 26, 1999 Economic Letter Index Monetary Policy and the Great Crash of 1929: A Bursting Bubble or Collapsing Fundamentals? Monetary Policy 1927-1930 Were the Fed's actions stabilizing or destabilizing? Conclusion References In recent years, a number of economists have expressed concern that the stock market is overvalued. Some have compared the situation with the 1920s, warning that the market may be headed for a similar collapse. Indeed, some suggest that lax monetary policy contributed to the Great Crash and have argued that current monetary policy is also dangerously lax. For example, an April 1998 Economist article stated: In the late 1920s, the Fed was also reluctant to raise interest rates in response to soaring share prices, leaving rampant bank lending to push prices higher still. When the Fed did belatedly act, the bubble burst with a vengeance. To avoid the same mistake

87. The Coming Economic Crash Caused By Debt There will soon come a world economic crash caused by massive debt. A inflationary depression that will be worse than the great depression http://www.thepropheticyears.com/reasons/World debt.HTM

T he coming economic crash in the United States and the world caused by de b t Almost every nation of the world has such severe debt that just making the interest payments takes a large amount of their financial resources. Much of this debt in third world countries is owed to world bankers that then dictate their own economic policy to these countries. These policies do not favor the poor. The largest economy in the world is the United States. The US government is currently over 7 trillion dollars in debt and that is projected to go to 9 billion or more. Paying the interest on that huge debt each years costs about as much as the budget for national defense. The United States is now by far the biggest debtor nation in the world. For many years we have been importing hundreds of billions more dollars in goods and services than we are exporting each year. Trillions of US dollars are now in the hands of foreign investors who at any time could dump the dollar causing a devaluation of the currency. Just a few years ago, the US government was forecasting surpluses of trillions of dollars based on the stupid assumption that there would not be a downturn in the economy for decades. This foolish assumption was of course proven wrong and deficit spending has returned to over "

88. Achieving Economic Stability (1987 Ann. Rpt.) Achieving Economic Stability Lessons From the crash of 1929 The Depressionalso illustrates the risks to the general economy of banking crises and, http://web.nps.navy.mil/~relooney/3040_260.htm

1987 Annual Report Essay Achieving Economic Stability: Lessons From the Crash of 1929 Gary H. Stern President, Federal Reserve Bank of Minneapolis The sharp break in stock prices last fall appropriately compelled a reassessment of economic prospects for the year ahead. In some quarters, analysis has gone beyond mere reassessment to raise fundamental issues about the likelihood of repeating the Great Depression of the 1930s. The specter of the Great Depression, together with the stock market crash of October 19, 1987, has understandably raised concern about the possibility of another major economic collapse. This concern merits close and sober scrutiny because of the potential to misunderstand what happened during the earlier episode and, in turn, to devise ineffective and inappropriate policy responses. More constructively, proper perspective on 1929 should be valuable in determining the policy course for 1988 and beyond. In This Essay: The conclusion underscores the principal policy recommendations which emerge. These include: maintaining the stability of the banking system;

89. STOCK MARKET CRASH OF 1929 Term Papers, Research Papers On STOCK MARKET CRASH OF A discussion of the social and economic problems resulting from the 1929 stockmarket crash An analysis of the 1929 crash of the American stock market. http://www.academon.com/lib/essay/stock-market-crash-of-1929-and-1987.html

Home Sell Buy FAQs ... Contact Us Papers [1-15] of 100 :: [Page 1 of 7] Go to page: Search results on "STOCK MARKET CRASH OF 1929": Term Paper #1786 Add to Cart (You can always remove it later) The Stock Market Crash of 1929 A discussion of the reasons behind the 1929 stock market crash. 2,535 words ( approx. 10.1 pages ), 6 sources, Click here to show/hide Paper Summary Abstract From the Paper: Term Paper #18020 Add to Cart (You can always remove it later) The Stock Market Crashes Of 1929 and 1987 A comparrison of the causes and effects of the two market crashes. A detailed examination of market behaviour, price, stock values, government policy and general economic conditions. 1,350 words ( approx. 5.4 pages ), 8 sources, Click here to show/hide Paper Summary From the Paper: The Stock Market Crashes of 1929 and 1987 " On the surface, there was a similar pattern to the stock market crashes of 1929 and 1987. In both cases, stock prices rose dramatically, crashed suddenly, and investors suffered tremendous losses. However, the economic conditions leading up to the two events were considerably different, and significant differences can be found in the economic policies following the market declines. Because of these differences, the consequences of the 1987 crash are likely to be far less severe than those of 1929. The greatest similarity between the two market crashes can be found in market behavior and stock prices leading up to and during @the collapse. In both cases, rising stock values were fueled by speculation and the bubble ultimately burst. The stock..."

90. Timeline Of The Great Depression By 1929, the richest 1 percent will own 40 percent of the nation s wealth. This and the next year are the worst years of the Great depression. http://www.huppi.com/kangaroo/Timeline.htm

TIMELINES OF THE GREAT DEPRESSION: This page features two timelines: the first for general events of the Roaring 20s and the Great Depression, the second for leading economic indicators. The importance of these timelines cannot be emphasized enough. Seeing the order in which events actually occurred dispels many myths about the Great Depression. One of the greatest of these myths is that government intervention was responsible for its onset. Truly massive intervention began only under the presidency of Franklin Roosevelt in 1933, who was sworn in after the worst had already hit. Although his New Deal did not cure it, all the leading economic indicators improved on his watch. But don't take my word for it here is the raw data: TIMELINE OF GENERAL EVENTS 1920s (Decade) During World War I, federal spending grows three times larger than tax collections. When the government cuts back spending to balance the budget in 1920, a severe recession results. However, the war economy invested heavily in the manufacturing sector, and the next decade will see an explosion of productivity... although only for certain sectors of the economy. An average of 600 banks fail each year.

91. Causes Of The Great Depression Under their conservative economic philosophy of laissezfaire ( leave it alone ),markets were The fact that the Great depression began in 1929, then, http://www.huppi.com/kangaroo/Causes.htm

CAUSES OF THE GREAT DEPRESSION: A review of Keynesian theory To understand the Great Depression, it is important to know the theories of John Maynard Keynes (rhymes with "rains"). Keynes is known as the "father of modern economics" because he was the first to accurately describe some of the causes and cures for recessions and depressions. In a normal economy, Keynes said, there is a circular flow of money. My spending becomes part of your earnings, and your spending becomes part of my earnings. For various reasons, however, this circular flow can falter. People start hoarding money when times become tough; but times become tougher when everyone starts hoarding money. This breakdown results in a recession. To get the circular flow of money started again, Keynes suggested that the central bank in the U.S., the Federal Reserve System should expand the money supply. This would put more money in people's hands, inspire consumer confidence, and compel them to start spending again. A depression, Keynes believed, is an especially severe recession in which people hoard money no matter how much the central bank tries to expand the money supply. In that case, he suggested that government should do what the people were not: start spending. He called this "priming the pump" of the economy. Indeed, most economists believe that only massive U.S. defense spending in preparation for World War II cured the Great Depression.

92. World Economic Depression And Stock Market Crash In 2004? - A New Age / Astrolog Could a worldwide economic crash and economic depression occur soon, As in1929, a fall in the stock market caused a slump in the US economy. http://revelation13.bravepages.com/economy.html

cookie_name="pop1"; cook_value="1!!1127228884"; cook_expires="Tue, 20 Sep 2005 15:09:04 GMT"; document.cookie=cookie_name+"="+cook_value+";expires="+cook_expires+";"; FREE WEB HOSTING domain registration hosting Teen Chat cheap web hosting ... notebook computer Revelation 13: World Economic Depression and Stock Market Crash in 2004? - A New Age / Astrology / Prophecy Discussion Here we will apply astrology, Biblical prophecy, numerical analysis, and the concepts of this Revelation 13 web site to economics. Could a worldwide economic crash and economic depression occur soon, including a world stock market crash? Yes, I think seven years of world economic disaster, economic depression and chaos, and world stock market decline began in 2001, and this world economic chaos will likely continue into 2004 and 2005. I think the U.S. stock markets and financial markets, the New York Stock Exchange, Dow Jones Industrial Average, and the Nasdaq stock markets will have continued chaos and drop some in 2004 - 2005. But I think the U.S. stock markets (NYSE and NASDAQ) will do better than Europe and Asia. I think worldwide economy chaos continues into 2007. World economics will likely see wild swings and chaos into 2007. First let us consider recent Astrology/Astronomy events.

93. The Great Depression And New Deal, 1929-1939 The Great depression and New Deal, 19291940s. wpeB.jpg (55292 bytes) A 1928campaign truck. The depression s impact on the economy http://iws.ccccd.edu/kwilkison/Online1302home/20th Century/DepressionNewDeal.htm

Welcome to HIST 1302 Online United States History, 1877- Part II: War, Depression and War, 1914-1945 The Great Depression and New Deal, 1929-1940s A 1928 campaign truck. Hoover won easily, taking 58 percent of the vote. (Herbert Hoover Presidential Library-Museum) Background and Causes of the Great Depression The 1920s "boom" enriched only a fraction of the American people. Earnings for farmers and industrial workers stagnated or fell. While this represented lower production costs for companies, it also precluded growth in consumer demand. Thus, by the mid 1920s the ability of most Americans to purchase new automobiles, new houses and other durable goods was beginning to weaken. This weakening demand was masked, however, by the "great bull market" in stocks on the New York Stock Exchange. The ever-growing price for stocks was, in part, the result of greater wealth concentration within the investor class. Eventually the Wall Street stock exchange began to take on a dangerous aura of invincibility, leading investors to ignore less optimistic indicators in the economy. Over-investment and speculating (gambling) in stocks further inflated their prices, contributing to the illusion of a robust economy. The crucial point came in the 1920s when banks began to loan money to stock-buyers since stocks were the hottest commodity in the marketplace. Banks allowed Wall Street investors to use the stocks themselves as collateral. If the stocks dropped in value, and investors could not repay the banks, the banks would be left holding near-worthless collateral. Banks would then go broke, pulling productive businesses down with them as they called in loans and foreclosed mortgages in a desperate attempt to stay afloat.

94. Did 1929 Crash Have To Happen? - Oct. 29, 2004 Other economists note that prominent economic thinkers of the time, including John Even in retrospect, stock valuations in precrash 1929 don t seem http://money.cnn.com/2004/10/26/markets/1929crash/

CNN/Money Web Autos Real Estate Money's Best Home ... Last 5 Quotes CNN/Money Email newsletters RSS Mobile news Money archives ... Find a Mortgage SPECIAL OFFER Lessons from 1929 75 years later, debate over whether the crash had to happen, and post-1987, if it can happen again. October 29, 2004: 11:45 AM EDT Yuval Rosenberg, CNN/Money contributing writer NEW YORK (CNN/Money) - The numbers are still stunning. On "Black Monday" in October 1929, the Dow Jones industrial average tumbled 12.8 percent, and the next day, "Black Tuesday," it sank another 11.7 percent. The crash of 1929 took the market down 23 percent in just two days and nearly 30 percent over six days that fall. Things would get even worse. By July 1932 the market had plummeted almost 90 percent, and it would take 25 years before the Dow would surpass its 1929 peak. Now, as we look back seventy-five years later, several questions come to mind: Can it happen again given the reforms instituted after the 1987 crash. And this probably unanswerable puzzler: Did the crash of 1929 really have to happen in the first place?

95. Great Myths Of The Great Depression The Foundation for Economic Education Was founded by Leonard E. Read in How bad was the Great depression? Over the four years from 1929 to 1933, http://www.fee.org/vnews.php?nid=4095

96. Federal Reserve Bank Of Minneapolis - Annual Report - Achieving Economic Stabili Achieving Economic Stability. Lessons From the crash of 1929 The Depressionalso illustrates the risks to the general economy of banking crises and, http://minneapolisfed.org/pubs/ar/ar1987.cfm

I'm at: Home Publications Annual Report Publications Expand All Collapse All The Region Index by Issue ... Topics Index Annual Report Quarterly Review Community Dividend Banking and Policy Studies Articles Toolbox document.write("") advanced search 1987 Annual Report Achieving Economic Stability: Lessons From the Crash of 1929 Gary H. Stern President Federal Reserve Bank of Minneapolis The sharp break in stock prices last fall appropriately compelled a reassessment of economic prospects for the year ahead. In some quarters, analysis has gone beyond mere reassessment to raise fundamental issues about the likelihood of repeating the Great Depression of the 1930s. The specter of the Great Depression, together with the stock market crash of October 19, 1987, has understandably raised concern about the possibility of another major economic collapse. This concern merits close and sober scrutiny because of the potential to misunderstand what happened during the earlier episode and, in turn, to devise ineffective and inappropriate policy responses. More constructively, proper perspective on 1929 should be valuable in determining the policy course for 1988 and beyond. In This Essay The conclusion underscores the principal policy recommendations which emerge. These include:

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