Tuesday, October 28, 2008

1929 crash anniversary nears - Greater Depression looms

Many market historians believe the crash started on Oct. 24, when heavy selling swept the market. But the two days labeled Black Monday and Black Tuesday, Oct. 28 and 29, are widely considered in popular culture as the days that the crash occurred.

NVDL: Many experts say that the current crisis (aka crash) isn't (and won't be) as bad as 1929 because governments this time have gotten involved. Err...that's not the end of the discussion. Finance is now globalised, and debt has become so dissolute. Probably more significant than anything else is that today there are fewer resources available to the man in the street. Fewer farm owners. In 1929 the unemployed went to live with their uncles and brothers who owned farms. Today, rural areas are far less populated than they were in the past. Hence 2008 is likely to produce the Greater Depression.
clipped from www.msnbc.msn.com
Image: Outside NYSE on Oct. 24, 1929.

NEW YORK - Wall Street's struggle to recover from this month's devastating drop is coinciding with the anniversary of another dark period for the stock market — the crash of 1929.

The dramatic selling of Oct. 28-29 of that year sparked widespread panic and helped trigger the Great Depression largely because the government, wary of meddling in the economy, failed to take many of the steps that the Treasury and Federal Reserve are now using to try to prop up the hammered financial system.

But there are also parallels with today's crisis on the Street — including missed warning signs before the crash and faltering investor confidence in the aftermath.

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