“Recession over, recovery to begin soon.
By Daniel at 22 August, 2009, 3:47 pm
“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 [...]
The quotes of priceless historical lessons:
By Daniel at 29 March, 2009, 2:02 am
“There is no cause to worry. The high tide of prosperity will continue”
- Andrew W. Mellon, Secretary of the Treasury. September 1929
Stock Prices Will Stay at High Level For Years to Come, Says Ohio Economist .
-Dr. Charles Amos Dice, professor of business organization at Ohio State October 13, 1929
“FISHER SEES STOCKS PERMANENTLY HIGH”
-Irving Fisher, Yale [...]
“human nature,” and “the velocity of money” - John Maudlin
By Daniel at 21 January, 2009, 1:23 am
quote:
Presently, major sectors of the U.S. economy are experiencing a debt deflation that is causing a massive destruction of wealth, thereby curtailing jobs, income and spending. Irving Fisher who, according to Friedman, was the most brilliant of all U.S. economists has noted that when the economy enters a period of “debt and price disturbances”, those [...]
Historical quotes for U.S stock market
By Daniel at 18 December, 2008, 8:37 pm
“We will not have any more crashes in our time.”
- John Maynard Keynes in 1927
“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 [...]
Early economist Irving Fisher argued that the predominant factor leading to the Great Depression was over indebtedness and deflation; Almost 80 years later this looks very familiar, doesn‘t it?
By Daniel at 22 November, 2008, 8:41 pm
Fisher tied loose credit to over-indebtedness, which fueled speculation and asset bubbles. The chain of events,according to Fisher proceeded as follows:
1 Debt liquidation and distress selling
2 Contraction of the money supply as bank loans are paid off
3 A fall in the level of asset prices
4 A still greater fall in the net worth of businesses, [...]
U.S 1929 Great Depression vs. 2008 financial, housing, credit crisis
By Daniel at 12 November, 2008, 11:46 pm
Great Depression happened in 1929. It took over 10 years to cure.
Effects of depression:
13 million people became unemployed.
Industrial production fell by nearly 45% between the years 1929 and 1932.
Home-building dropped by 80% between the years 1929 and 1932.
From the years 1929 to 1932, about 5000 banks went out of business.
That’s where when the buyer [...]
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