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October 29 1929

By Patrick Van Roy On October 29th, 2020

 

Panic has gripped Wall Street since October 24, and now the bottom has fallen out, as market losses rise to $30 billion. The unparalleled crash ends a bull market riding high on 1920s optimism and ushers in what will be a worldwide, and decade-long, Great Depression.

5 Responses to “October 29 1929”

  1. Obama’s fault.

    And Nancy Pelosi’s. She was in Congress then I believe.

  2. no Trumps

  3. The unparalleled crash ends a bull market riding high on 1920s optimism …

    Keynes’ “animal spirits”. It was a stupid and uneconomic argument when he made it in 1936. It’s stupid, uneconomic and archaic now. The 1920s boom was fuelled by cheap money. All booms are fuelled by artificially cheap money and they all end in a necessary, corrective recession.

    … and ushers in what will be a worldwide, and decade-long, Great Depression.

    In the US it lasted for 16 years, thanks to FDR repeatedly rescuing the economy. WW2 masked the dire economy. It was only corrected when Truman went against economic advice and slashed taxes, spending and regulations. The result was the astonishing post-war growth of the American economy.

    The UK did it in reverse. 1929 was dire here too, but the government didn’t do much so the economy soon flushed out the malinvestments which always distort economies when money is cheap.

    Then in 1945 the most economically damaging government in our history ramped up taxes, spending and imposed severe regulations. It collectivised vast swathes of the economy. While American housewives were buying new fridges and cookers British housewives were measuring out still-rationed powdered egg well into the 1950s.

    By the 1970s the UK was “the sick man of Europe”. It was a description of the economy. In desperation the power-elites threw us under Brussels’ yoke. A grocer’s daughter had to correct decades of economic imbecility before the rest of us threw off the yoke.

  4. What Happened On This Day – 29TH October

    2012 – Hurricane Sandy hits the US’s eastern coast
    Hurricane Sandy, a category 2 storm by the time it made landfall in the US, hit the US’s eastern coast. The estimated damage from the hurricane was $50 billion.

    And we all know who was in POTUS in 2012.
    Another thing he should be in jail for.

  5. What happened today……

    U.S. GDP booms at 33.1% rate in Q3,

    https://www.cnbc.com/2020/10/29/us-gdp-report-third-quarter-2020.html