The Great Depression Causes
THE REAL REASON WHY THE DEPRESSION OCCURRED
1. DEBT AND TARIFFS
Debt – check! Tariffs – ??
2. THE COLLAPSE OF CREDIT MARKETS
Check
3. IRRATIONAL PESSIMISM, AND CRISIS OF CONFIDENCE
Check
4. 20 YEARS OF TRADE WAR PRIOR TO THE CRASH OF 29
? No ? But we’ve got increased globalization, and that’s got to count for something. Are price wars the same as trade wars?
5. COLLAPSE OF THE COMMODITY MARKET
Check
6. ENGLAND ABANDONING THE GOLD STANDARD
not applicable
7. CONTRACTION OF THE REAL ECONOMY
Check
A Side Note: The large short interest was badly pummeled and was driven to cover. Because of this whipsawing nature of the Great Depression stock market, even the short speculators had few large winners amongst their ranks.
Well, this was interesting.
I do not vouch for the accuracy of the above. Don’t panic, it’s all in your mind.
Hear hear on It’s all in your mind. It’s amazing that the entire worldwide economy is driven by emotion-based decisions. With apologies to Rudyard Kipling, “If you can keep your wits about you while all others are losing theirs,” you’ll be able to hang onto that pension, 401(k), IRA, and what have you, “my son.”
Hey Sarcasticynic,
haven’t seen you around in awhile.
How’s your portfolio doing? Hope you’re staying retired 🙂
I have two very conflicting inner voices: one is panicky, the other “voice of reason”. The reality will probably be something in between.
There was a poll on some local radio in Mid-West. 60%+ of people said they weren’t selling their stocks and plan to hold through the downturn, another 15% didn’t have any stocks to begin with. So it’s really not that bad, but TV as usual over-dramatizes it.
globalization is the opposite of a trade war/Tariff.
None of this means we can’t get there… we can keep trying till we get it right.
Jim Rodgers says commodities are King….
get out the tinfoil hats…
Eric,
I’m (as you may know) expecting a war, so commodities are king in my tinfoil world.
>None of this means we can’t get there… we can keep trying till we get it right.
LOL
Is there an instinct to screw up?