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The Masked Tulip

Great Depression Article In Daily Mirror

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The Mirror has a nice article about the Great Crash of 1929 and subsequent depression today. Lots of history stuff about people losing everything, jumping off buildings, etc. Comments that it was all started by people shorting stock which is what happened this week with HBOS and then how this might be GDII.

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From the article:

Just like the current crisis, the Wall Street Crash came after a period of economic success. The Roaring Twenties was a time of unmatched prosperity in the US.

If we look back to only a year ago, bankers needed a wheelbarrow to cart their bonuses home. Now, since the credit crunch chaos caused by the collapse of the US sub-prime mortgage market, they're lucky to keep their jobs.

One of the causes of the 1929 Crash was short-selling - borrowing shares from a broker to sell at a high price and buy back - hopefully - at a profit when the market plummets.

Come back up to date and you notice that old habits clearly die hard as rogue traders tried to bring down HBOS in Britain this week, sending its shares tumbling 20 per cent.

So it was short-selling wot dun it; nothing to do with the preceding mania/boom (hereby re-branded 'a time of unmatched prosperity'). If only those pesky rogue traders hadn't gone and spoiled things, the good times could have rolled forever ;)

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From the article:

So it was short-selling wot dun it; nothing to do with the preceding mania/boom (hereby re-branded 'a time of unmatched prosperity'). If only those pesky rogue traders hadn't gone and spoiled things, the good times could have rolled forever ;)

Agreed, it physically sickens me to hear anyone mention the Great Depression without mentioning shares and "Buy on margin". The Mirror is, unfortunately, simply added to a long list of those who do it.

By the way, is it me or does not the waves of the last few years "leveraged buy out"s literally reek of the same buying-on-margin odour?

Edited by agb41

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Very interesting.

This time it's not the equity markets which have had a bubble due to buying on margin, but it's the capital markets via ABS, RMBS and CMBS.

This time around, it's the hedge funds who lead the way down....

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Most sheeple don`t know what the Great Depression is, they think it is something to do with the weather. If you asked a random selection of secondary school children you would just get comedy answers, because they don`t know and they don`t care.

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All I know about people in the time of the depression was that they were all black and white.

Now we have multiculturalism, its much better.

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Guest vicmac64
The GD1 was just the dress rehearsal...

I would tend to agree with you Nicolaj - no real economy in the Uk = a coming financial maelstrom. Anyone that thinks different had better come up with sound reasons as to why this won't happen.

Budget deficits, unbridled immigration, costly unprovoked (in my opinion illegal) wars on sovereign foreign nations, govt spending through the roof, personal debt surpassing GDP, cash for honours........... licensing for human animal hybrids (what sort of scum run our country), the list goes on and on and on and on and on - we are truly turning into a despicable nation totally isolated from our once great status.

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Quotes as the 1929-1935 depression unfolded:

1. "We will not have any more crashes in our time."

- John Maynard Keynes in 1927

2. "I cannot help but raise a dissenting voice to statements that we are living in a fool's paradise, and that prosperity in this country must necessarily diminish and recede in the near future."

- E. H. H. Simmons, President, New York Stock Exchange, January 12, 1928

"There will be no interruption of our permanent prosperity."

- Myron E. Forbes, President, Pierce Arrow Motor Car Co., January 12, 1928

3. "No Congress of the United States ever assembled, on surveying the state of the Union, has met with a more pleasing prospect than that which appears at the present time. In the domestic field there is tranquility and contentment...and the highest record of years of prosperity. In the foreign field there is peace, the goodwill which comes from mutual understanding."

- Calvin Coolidge December 4, 1928

4. "There may be a recession in stock prices, but not anything in the nature of a crash."

- Irving Fisher, leading U.S. economist , New York Times, Sept. 5, 1929

5. "Stock prices have reached what looks like a permanently high plateau. I do not feel there will be soon if ever a 50 or 60 point break from present levels, such as (bears) have predicted. I expect to see the stock market a good deal higher within a few months."

- Irving Fisher, Ph.D. in economics, Oct. 17, 1929

"This crash is not going to have much effect on business."

- Arthur Reynolds, Chairman of Continental Illinois Bank of Chicago, October 24, 1929

"There will be no repetition of the break of yesterday... I have no fear of another comparable decline."

- Arthur W. Loasby (President of the Equitable Trust Company), quoted in NYT, Friday, October 25, 1929

"We feel that fundamentally Wall Street is sound, and that for people who can afford to pay for them outright, good stocks are cheap at these prices."

- Goodbody and Company market-letter quoted in The New York Times, Friday, October 25, 1929

6. "This is the time to buy stocks. This is the time to recall the words of the late J. P. Morgan... that any man who is bearish on America will go broke. Within a few days there is likely to be a bear panic rather than a bull panic. Many of the low prices as a result of this hysterical selling are not likely to be reached again in many years."

- R. W. McNeel, market analyst, as quoted in the New York Herald Tribune, October 30, 1929

"Buying of sound, seasoned issues now will not be regretted"

- E. A. Pearce market letter quoted in the New York Herald Tribune, October 30, 1929

"Some pretty intelligent people are now buying stocks... Unless we are to have a panic -- which no one seriously believes, stocks have hit bottom."

- R. W. McNeal, financial analyst in October 1929

7. "The decline is in paper values, not in tangible goods and services...America is now in the eighth year of prosperity as commercially defined. The former great periods of prosperity in America averaged eleven years. On this basis we now have three more years to go before the tailspin."

- Stuart Chase (American economist and author), NY Herald Tribune, November 1, 1929

"Hysteria has now disappeared from Wall Street."

- The Times of London, November 2, 1929

"The Wall Street crash doesn't mean that there will be any general or serious business depression... For six years American business has been diverting a substantial part of its attention, its energies and its resources on the speculative game... Now that irrelevant, alien and hazardous adventure is over. Business has come home again, back to its job, providentially unscathed, sound in wind and limb, financially stronger than ever before."

- Business Week, November 2, 1929

"...despite its severity, we believe that the slump in stock prices will prove an intermediate movement and not the precursor of a business depression such as would entail prolonged further liquidation..."

- Harvard Economic Society (HES), November 2, 1929

8. "... a serious depression seems improbable; [we expect] recovery of business next spring, with further improvement in the fall."

- HES, November 10, 1929

"The end of the decline of the Stock Market will probably not be long, only a few more days at most."

- Irving Fisher, Professor of Economics at Yale University, November 14, 1929

"In most of the cities and towns of this country, this Wall Street panic will have no effect."

- Paul Block (President of the Block newspaper chain), editorial, November 15, 1929

"Financial storm definitely passed."

- Bernard Baruch, cablegram to Winston Churchill, November 15, 1929

9. "I see nothing in the present situation that is either menacing or warrants pessimism... I have every confidence that there will be a revival of activity in the spring, and that during this coming year the country will make steady progress."

- Andrew W. Mellon, U.S. Secretary of the Treasury December 31, 1929

"I am convinced that through these measures we have reestablished confidence."

- Herbert Hoover, December 1929

"[1930 will be] a splendid employment year."

- U.S. Dept. of Labor, New Year's Forecast, December 1929

10. "For the immediate future, at least, the outlook (stocks) is bright."

- Irving Fisher, Ph.D. in Economics, in early 1930

11. "...there are indications that the severest phase of the recession is over..."

- Harvard Economic Society (HES) Jan 18, 1930

12. "There is nothing in the situation to be disturbed about."

- Secretary of the Treasury Andrew Mellon, Feb 1930

13. "The spring of 1930 marks the end of a period of grave concern...American business is steadily coming back to a normal level of prosperity."

- Julius Barnes, head of Hoover's National Business Survey Conference, Mar 16, 1930

"... the outlook continues favorable..."

- HES Mar 29, 1930

14. "... the outlook is favorable..."

- HES Apr 19, 1930

15. "While the crash only took place six months ago, I am convinced we have now passed through the worst -- and with continued unity of effort we shall rapidly recover. There has been no significant bank or industrial failure. That danger, too, is safely behind us."

- Herbert Hoover, President of the United States, May 1, 1930

"...by May or June the spring recovery forecast in our letters of last December and November should clearly be apparent..."

- HES May 17, 1930

"Gentleman, you have come sixty days too late. The depression is over."

- Herbert Hoover, responding to a delegation requesting a public works program to help speed the recovery, June 1930

16. "... irregular and conflicting movements of business should soon give way to a sustained recovery..."

- HES June 28, 1930

17. "... the present depression has about spent its force..."

- HES, Aug 30, 1930

18. "We are now near the end of the declining phase of the depression."

- HES Nov 15, 1930

19. "Stabilization at [present] levels is clearly possible."

- HES Oct 31, 1931

20. "All safe deposit boxes in banks or financial institutions have been sealed... and may only be opened in the presence of an agent of the I.R.S."

- President F.D. Roosevelt, 1933

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I would tend to agree with you Nicolaj - no real economy in the Uk = a coming financial maelstrom. Anyone that thinks different had better come up with sound reasons as to why this won't happen.

Budget deficits, unbridled immigration, costly unprovoked (in my opinion illegal) wars on sovereign foreign nations, govt spending through the roof, personal debt surpassing GDP, cash for honours........... licensing for human animal hybrids (what sort of scum run our country), the list goes on and on and on and on and on - we are truly turning into a despicable nation totally isolated from our once great status.

Fully agree vicmac64

We are a morally corrupt Godless nation and we're just beginning to reap what we've sown these last 50yrs or so.

a little thing called Judgement is on it's way bigtime! IMO

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Most sheeple don`t know what the Great Depression is, they think it is something to do with the weather. If you asked a random selection of secondary school children you would just get comedy answers, because they don`t know and they don`t care.

Weather? how out of touch with the Yoof, They all know perfectly well 'The Great Depression' is what you get on a Sunday after popping Gurners (aka E's) all weekend. :lol:

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Guest Bart of Darkness
All I know about people in the time of the depression was that they were all black and white.

Very poor definition in GDI too, very grainy. At least GDII will be in High Definition so we'll find it much easier to see where we went wrong.

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"20. "All safe deposit boxes in banks or financial institutions have been sealed... and may only be opened in the presence of an agent of the I.R.S."

- President F.D. Roosevelt, 1933"

Finalbear,

The best one was last.

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Guest Charlie The Tramp

Remember in the Great Depression it was the minority who had the riches.

Today that is now reversed. ;)

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Remember in the Great Depression it was the minority who had the riches.

Today that is now reversed. ;)

....it's certainly the majority who seem to have the debts...... <_<

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Guest Charlie The Tramp
....it's certainly the majority who seem to have the debts...... <_<

Among the X and Y Generations ? :unsure:

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If you lose everything what is the point of jumping off a building I really can't understand that mentality. If i lost everything I would make the most of my freedom, go and live in a caravan in the south of france and enjoy myself. Sometimes our belongings and our jobs are our biggest chains....sometimes it's good to lose the lot.

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Guest Steve Cook
Fully agree vicmac64

We are a morally corrupt Godless nation and we're just beginning to reap what we've sown these last 50yrs or so.

a little thing called Judgement is on it's way bigtime! IMO

Are you of a religious persuasion by any chance. I say this because you appear to be making a link between what you see as a godless nation and the current economic crisis afflicting the world. I would be very much interested to hear from you how extactly such a relationship might operate? I look forward to your reply.

Steve

Edited by Steve Cook

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Guest Steve Cook
I would tend to agree with you Nicolaj - no real economy in the Uk = a coming financial maelstrom. Anyone that thinks different had better come up with sound reasons as to why this won't happen.

Budget deficits, unbridled immigration, costly unprovoked (in my opinion illegal) wars on sovereign foreign nations, govt spending through the roof, personal debt surpassing GDP, cash for honours........... licensing for human animal hybrids (what sort of scum run our country), the list goes on and on and on and on and on - we are truly turning into a despicable nation totally isolated from our once great status.

I see you appear to be making a relational connection between the licensing of human-animal hybrid pre-embryonic research and the current economic crisis, I cannot see the direct relationship between the two myself. However, I am sure this is down to a lack of insight on my part and am hoping you might furnish me with the specific nature of this relationship. I look forward to your reply.

Steve

Edited by Steve Cook

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Most sheeple don`t know what the Great Depression is, they think it is something to do with the weather. If you asked a random selection of secondary school children you would just get comedy answers, because they don`t know and they don`t care.

<yoda>They will</yoda>

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Remember in the Great Depression it was the minority who had the riches.

Today that is now reversed. ;)

Might get reversed again.

Anyone got a list of the big boys that sold their stock in Wall street just before the crash I read about it before and obviously they knew what was about to happen. I think Cgnao was on the list :lol:

Edited by Bardon

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If you lose everything what is the point of jumping off a building I really can't understand that mentality. If i lost everything I would make the most of my freedom, go and live in a caravan in the south of france and enjoy myself. Sometimes our belongings and our jobs are our biggest chains....sometimes it's good to lose the lot.

Depends on who you are. City boy types define their worth by the size of their salary and bonus, nothing else matters. For someone like that, suicide is preferable to the humiliation of the loss of status.

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  • 298 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
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      • up 5%



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