What do you think caused the GD?

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What caused the GD?

  • The Fed

  • Smoot-Hawley Tarriff

  • limited regulations

  • not sure

Results are only viewable after voting.
A

Anarchist420

Diamond Member
Feb 13, 2010
8,645
0
76
www.facebook.com
Personally, I think it was the Fed. Everyone bought a lot on credit in the Roaring 20s, and Fractional reserve lending was the culprit. The banks loaned out more than they had, so that caused the bank runs that resulted in the GD.
 
J

jhu

Lifer
Oct 10, 1999
11,918
9
81
Lack of transparency. The handful of people with all the information were gaming all the people who didn't.
 
G

Genx87

Lifer
Apr 8, 2002
41,091
513
126
It was a perfect storm of not enough oversight, contraction of the money supply after the crash, protectionism, and govt intervention.
 
Jaskalas

Jaskalas

Lifer
Jun 23, 2004
35,553
9,788
136
The roaring 20s came to an end, and FDR dug the hole deeper carving out a great depression from a small blip.
 
Vic

Vic

Elite Member
Jun 12, 2001
50,422
14,337
136
jhu said:
Lack of transparency. The handful of people with all the information were gaming all the people who didn't.
Click to expand...

Nonsense. The first rule of markets is that the all the information available has already been acted on. So it's the people trying to game the markets, regular investors thinking they know something that has not already been acted on, who are the suckers. And it is these suckers (and those who feed upon them) that cause every boom and bust cycle.

A hypothetical example: a stock (pick any) goes up based on factual information in the market. Some suckers see this as evidence that the stock is "hot" and will continue to go up. Their after-the-fact action in the market continues to drive the price up, over and above the fundamental reasons why it did so in the first place. Other see this as evidence of a "rally," and push it further to lofty heights. Champagne corks pop in celebration. Then, some decides to sell to pay for the champagne, the bubble deflates, and the stock returns, after some fluctuations, to a reasonable value based upon the actual factors supporting it. The suckers call this a bust, cry, and then promptly move on to the "hot ticket," the next bubble and the next fleecing.

Now, I'm not arguing against regulation per se, but has anyone ever stopped to consider some basic education and common sense first? Because... I'm sorry, but you're not victims... you're greedy and should know better.
 
Vic

Vic

Elite Member
Jun 12, 2001
50,422
14,337
136
Jaskalas said:
The roaring 20s came to an end, and FDR dug the hole deeper carving out a great depression from a small blip.
Click to expand...

Which is why the Great Depression was already in full swing and hitting bottom before FDR was even sworn in...
 
R

RedChief

Senior member
Dec 20, 2004
533
0
81
Vic said:
Which is why the Great Depression was already in full swing and hitting bottom before FDR was even sworn in...
Click to expand...

Not even close. Hoover turned a very bad recession into a depression. FDR expanded on Hoovers programs and made the depression great.
 
werepossum

werepossum

Elite Member
Jul 10, 2006
29,873
463
126
Genx87 said:
It was a perfect storm of not enough oversight, contraction of the money supply after the crash, protectionism, and govt intervention.
Click to expand...

This. We made ourselves vulnerable to foreign interests (like today) and then when a recession came along we first went all clumsily protectionist and then went all big-government solutions. Hoover probably made it worse and FDR probably made it longer, both with the best of intentions.
 
Miramonti

Miramonti

Lifer
Aug 26, 2000
28,653
100
106
Vic said:
Nonsense. The first rule of markets is that the all the information available has already been acted on. So it's the people trying to game the markets, regular investors thinking they know something that has not already been acted on, who are the suckers. And it is these suckers (and those who feed upon them) that cause every boom and bust cycle.

A hypothetical example: a stock (pick any) goes up based on factual information in the market. Some suckers see this as evidence that the stock is "hot" and will continue to go up. Their after-the-fact action in the market continues to drive the price up, over and above the fundamental reasons why it did so in the first place. Other see this as evidence of a "rally," and push it further to lofty heights. Champagne corks pop in celebration. Then, some decides to sell to pay for the champagne, the bubble deflates, and the stock returns, after some fluctuations, to a reasonable value based upon the actual factors supporting it. The suckers call this a bust, cry, and then promptly move on to the "hot ticket," the next bubble and the next fleecing.

Now, I'm not arguing against regulation per se, but has anyone ever stopped to consider some basic education and common sense first? Because... I'm sorry, but you're not victims... you're greedy and should know better.
Click to expand...

You're overlooking the major deception games that get played in each bubble that inevitably lead to the ensuing crash. That and the fact that the big money moves the market more than the little 'suckers' as you're pidgeon-holing them.

The stock market has always been a bit of a pyramid scheme as well, and the belief that its always about 'value' is a myth. What matters most is inevitably what the next price is going to be after one buys it. Buying begets buyers and selling begets sellers. The suckers are the ones that are too greedy to take profits, especially when the market is raging in their favor.
 
V

Vette73

Lifer
Jul 5, 2000
21,503
9
0
Brainonska511 said:
I like the revisionist history going on in this thread.
Click to expand...


This.

Check out some right wing sites and they are trying to say it was the Fed that caused it and if the market had less it would have been great with no problems. etc... Just like now we need less oversight and more free money and so forth.
 
A

Acanthus

Lifer
Aug 28, 2001
19,915
2
76
ostif.org
Robor said:
Why is Obama not an option in the poll?
Click to expand...

The president doesn't control the economy. Contrary to popular belief.

Also...

It didn't even happen on his watch.

We haven't had a recession like the great depression since the great depression... the reason was tightened regulation. Eliminating said regulation over time and failing to regulate emerging markets caused the vast majority of our current issues. The housing bubble though, which was also a huge part of this, was caused by epic stupidity across the board.
 
Last edited:
R

Robor

Elite Member
Oct 9, 1999
16,979
0
76
Acanthus said:
The president doesn't control the economy. Contrary to popular belief.

Also...

It didn't even happen on his watch.

We haven't had a recession like the great depression since the great depression... the reason was tightened regulation. Eliminating said regulation over time and failing to regulate emerging markets caused the vast majority of our current issues. The housing bubble though, which was also a huge part of this, was caused by epic stupidity across the board.
Click to expand...

Hehe... Check your sarcasm meter. I was just being a smartass. :D

As far as the president controlling the economy, don't they appoint some of the people who do?
 
Thump553

Thump553

Lifer
Jun 2, 2000
12,837
2,622
136
None of the above. The Grateful Dead really came into their own during 1967's Summer of Love. Ken Kesey's acid fests certainly helped.

<---Charter member of PHHMUA (People who hate made up acronyms).
 
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