Thursday, March 19, 2009
Great Depression Quotes 1929 vs 2008:
“Expert” opinions -- convey optimism, the bank bailouts, government assurances, the Hoover (Bush/Paulson) plan.
“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 economist, October 16h, 1929
“BROKERS IN MEETING PREDICT RECOVERY; Partners in 35 Wire Houses at Conference Agree Selling Has Been Overdone.” October 25, 1929
NEW AID IS PLEDGED TO BANK COALITION; G.F. Baker Jr. Joins Parley at Morgan Offices and Many Other Offers Are Made. SUPPORT EASES ANXIETY
-October 26, 1929
- Brokers Believe Worst Is Over and Recommend Buying of Real Bargains
- – New York Herald Tribune, October 27, 1929
October 29, 1929 - Stock Market Crashes!
BROKERS BELIEVE BOTTOM IS REACHED; Others Say a Sharp. Recovery Is in Order.
-October 30, 1929 (Glad they covered both sides of the story!)
“FISHER SAYS PRICES OF STOCKS ARE LOW; Quotations Have Not Caught Up With Real Values as Yet, He Declares. SEES NO CAUSE FOR SLUMP”
-October 22, 1929
“Time to Buy Stocks” John J. Raskob, one of the country’s leading industrial and political leaders
-October 30, 1929
Headline “INSURANCE HEADS URGE TO BUY STOCKS”
-October 30, 1929
ROCKEFELLER BUYS, ALLAYING ANXIETY; Elder Financier Says Business Status Does Not Warrant the Destruction of Values. October 31, 1929 (Remember Warren Buffet in Sept 2008?)
- Stocks Up in Strong Rally; Rockefellers Big Buyers; Exchanges Close 2-1/2 Days
- – New York Herald Tribune, October 31, 1929
SEES NEW BULL MARKET.; President of Philadelphia Stock Exchange Makes Predictions.
-November 22, 1929
BANKING CIRCLES SEE TURN FOR THE BETTER; Several Developments Cited as Presaging Recovery of the Stock Market. -November 15, 1929
HOOVER CALLS LEADERS OF NATION TO CONFER ON WAYS TO SPUR BUSINESS;
-November 16, 1929
Headline: The Quieting-Down of Wall Street–Aspects of Government’s Relief Projects.
-November 25, 1929
“The Government’s business is in sound condition.”
Andrew W. Mellon, Secretary of the Treasury
-December 5, 1929
RESERVE BANK AREAS FORECAST NEW YEAR
Despite the obvious slackening of the pace of business at the close of the year, leaders in banking and industry throughout the country maintain an optimistic attitude toward the prospects for 1930.
-January 1, 1930
MORTGAGE MONEY SCARCE
-February 23, 1930
“The worst is over without a doubt.”
James J. Davis, Secretary of Labor.
- June 1930
‘BUSINESS CYCLE’ SEEN AT NEW PHASE; Bankers Hold Downward Trend in Markets Indicates Recovery Is Near. DENY ANALOGY TO 1920-21 Economists Point to Superior Credit Conditions Now, Holding Easy Money Points to Revival.
-July 6, 1930
BIG BANKERS PUT UP $100,000 SAFEGUARD; House of Morgan Among Those Required to Provide Protection for Investors. -August 3, 1930
“We have hit bottom and are on the upswing.”
James J. Davis, Secretary of Labor.
-September 12, 1930
BIG FIRM SUSPENDED; Prince & Whitely, 51-Year-Old House, Is Unable to Meet Its Obligations
In the midst of the severest market reaction in two months, the New York Stock Exchange announced yesterday that the 51-year-old firm of Prince Whitely, one of the largest and best known houses in Wall Street, had been suspended on its own admission that it was unable to meet its obligations. (Can we say Bear Stears?)
-October 10, 1930
SCHWAB FORESEES RECORD PROSPERITY;
-October 25, 1930
“30% OF STOCKS SELL UNDER BOOK VALUES; Capital Is Above Market Price.”
-December 14, 1930
NEW YORK JOINING IN BRITISH CREDIT; Federal Reserve Bank Agrees, if Requested, to Buy Prime Commercial Bills.
-August 2, 1931
REDISCOUNT RATE CUT TO 1 % RECORD LOW; Federal Reserve Bank Here Takes Drastic Action
-May 8, 1931
RELIEF FUND URGED MEMBER BANKS
Out of the experiences of the depression, resulting in the necessity for organization of the $500,000,000 corporation to relieve banks temporarily in distress, may come a remodeled Federal Reserve System that will be so constituted as to meet the requirements of present-day commerce and industry.
-October 9, 1931
BANKERS OF NATION BACK HOOVER PLAN; October 8, 1931 (Paulson Plan 2008)
HOOVER’S BANK PLAN GETS WIDE SUPPORT; November 15, 1931 (Media Manufacturing Consent)
$2,000,000,000 POOL FOR BANK AID URGED; October 26, 1931 (Bail Out Bill)
URGES BUILDERS’ AID IN HOME FINANCING; Bank Official Says Industry Could Help More With Second Mortgages.
-August 30, 1931
REAL ESTATE MEN ON THE HOOVER PLAN; Some Skepticism Is Voiced, but the General Belief Is That Good Will Result.
-October 11, 1931
HOOVER PLAN HAILED IN HOLIDAY SERMONS; (Praise the lord)
-November 29, 1929
“The depression has ended.” (Finally see the “D” word, but only to refer to it in the past tense…very common)
Dr. Julius Klein, Assistant Secretary of Commerce.
- June 9, 1931 (Stock market did bottom one year and 50% later)
5-YEAR MORATORIUM PROPOSED BY KEYNES; Hoover Plan Is a “Stop-Gap” Device
-July 1, 1931
WORLD COOPERATION: A NEW STEP AHEAD; The Hoover Plan Has Focused Attention on the Problem of Economic Unity THE NEW WORLD COOPERATION
-July 12, 1931
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