Stock Market is Dying: Major Run On New York Banks

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  • dmitry
    dmitry Posts: 136
    DriftingByTheStorm wrote:
    The "depression" in 1920 was not followed by a significant and prolonged monitary contraction.
    The Fed contracted the money supply over the course of 3+ years.
    So we are already out past the time frame which you specified for the 1920 downturn.

    That is why i'm saying you can't evaluate what Hoover's ancillary policies did or did not contribute to the length of the situation.

    Does that make sense?

    I'm not really sure what you're saying here so hopefully you can explain it to me better. The Fed contracted the money supply in the early 20's and in all other previous cases, and the recessions were short-lived, but when the Fed contracted it in the depression, the depression was much longer? For what reason? Was it just the magnitude of the contraction, or was it something else like price and wage controls that would not let the contraction work?

    If there are no controls there should be no reason to worry about a deflationary spiral should there?

    I'm really interested in this topic so please tell me where I'm going wrong.

    Why do you think the depression ended, specifically?

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