The Great Depression Past and Present?
The Beginning of The Great Depression of 1929
When the New York Stock Exchange opened on the morning of October 24, 1929, nervous traders sensed something ominous in the trading patterns.
By 11:00 a.m. the market had started to plunge. Shortly after noon a group of powerful bankers met secretly at J.P. Morgan & Co. next door to the Exchange and pledged to spend $240 million of their own funds to stabilize the market.
This strategy worked for a few days, but the panic broke out again the following Tuesday, when the market crashed again, and nothing could be done to stop it.
Before three months had passed, the Stock Market lost 40% of its value; $26 billion of wealth disappeared. Great American corporations suffered huge financial losses. AT&T lost one-third of its value, General Electric lost half of its, and RCA's stock fell by three-fourths within a matter of months.
(It would take 25 years for the stock market to return to its pre-crash level following the 1929 crash.)
Photo by Dorothea Lange for the Resettlement Administration-1936.
Read More About the Stock Market Crash and Great Depression of 1929
A Lesson Learned From The Great Depression
"Of all the lessons to have emerged from the Great Depression, this remains the most important: that inept or inflexible monetary policy in the wake of a sharp decline in asset prices can turn a correction into a recession and a recession into a depression."
~ From The Ascent Of Money by Niall Ferguson
The Ascent of Money - A Financial History of The World
"Those who cannot remember the past are condemned to repeat it."
- George Santayana
Niall Ferguson follows the money to tell the human story behind the evolution of finance, from its origins in ancient Mesopotamia to the latest upheavals on what he calls Planet Finance.
Bread, cash, dosh, dough, loot, lucre, moolah, readies, the wherewithal: Call it what you like, it matters. To Christians, love of it is the root of all evil. To generals, it’s the sinews of war. To revolutionaries, it’s the chains of labor. But in The Ascent of Money, Niall Ferguson shows that finance is in fact the foundation of human progress. What’s more, he reveals financial history as the essential backstory behind all history.
Your Thoughts About The Current Economic Crisis? - A Recession or A Depression? You Decide!
The decade of the 1930s found America facing the worst economic crisis in its modern history.
Millions of people were unemployed, two million adult men ("hobos") wandered aimlessly around the country, banks and businesses failed and the majority of the elderly in America lived in dependency.
Are We Headed For Another Great Depression?
The Bread Lines in 1929
Video of The Depression and The New Deal - FDR and France Perkins
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