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All of this talk about how the Democrats are bad for the country makes me think about the history of the Great Depression.
In the United States, the Republican Party was the dominant force from the Civil War to the Great Depression.
When you look at all of the factors involved in the Stock Market crash, how it got to where it was and why it was possible, it seems that the Republican Party has not learned anything from history.
Still, they cry and moan like they've been the great saviors of our country's economy....
Either you are, 1) very ignorant or 2) just dislike republicans
The Federal Reserve System is in control of all the boom and bust cycles in the US. The Federal Reserve was created under Woodrow Wilson (Democrat). This is how the Federal Reserve System was established:
"After months of hearings, amendments, and debates the Federal Reserve Act passed Congress on a Sunday two days before Christmas when most of Congress was on vacation. Most every Democrat was in support of and most Republicans were against it." verify at http://www.bos.frb.org/about/pubs/begin.pdf
I wouldn't be surprised if this is how the health bill gets passed.
You don't believe that the Fed is too blame for boom/bust cycles?
It is clearly understood that Alan Greenspan's policy of artificially low interest rates was one of the most important factors in creating the housing bubble, which led to the financial/economic crisis. The problem is not Republican nor Democrat, the problem is the Federal Reserve.
Study history and you will find out that it was the Democrats who created the Federal Reserve and with the Federal Reserve having control over monetary policy, it is largely responsible for The Great Depression.
If the market manipulators and deep margin speculators were Republicans then they indeed did cause the Great Depression by gambling with money they did not own. They are still doing this which resulted in the recent collapse.
Markets are very useful for distributing capital (savings) but are very vulnerable to being taken over by professional gamblers or market manipulators. Those people eventually destroy the capital distribution function of an equity market. This is why markets have to be carefully and diligently regulated. Under recent Republican government they failed to regulate the market and it collapsed.
Oh come on!
It's been widely reported that Countrywide Mortgage had a special VIP program that provided various discounts to well-connected elites who could help Countrywide politically, most famously Sen. Christopher Dodd.
Let's look at Angelo R Mozilo the CEO of Countrywide.
Angelo picked his friends well. Dodd (democrat) chairs the Banking Committee, and the $58,000 Countrywide saved him by giving him a below-market interest rate probably served the lender well in keeping their misdeeds below the radar screen. It went well with the $21,000 in campaign contributions Dodd received from Countrywide.
Democrats are in on this too. You look at Angelo's political donations over the years and they cover both sides of the aisles buying influence from both democrats and republicans alike.
And the alternative is?
It's a capitalist system one that has brought us the highest standard of freedom in the world and it's upsetting to see so many ready to scrap it.
Either you are, 1) very ignorant or 2) just dislike republicans
You don't believe that the Fed is too blame for boom/bust cycles?
It is clearly understood that Alan Greenspan's policy of artificially low interest rates was one of the most important factors in creating the housing bubble, which led to the financial/economic crisis. The problem is not Republican nor Democrat, the problem is the Federal Reserve.
Study history and you will find out that it was the Democrats who created the Federal Reserve and with the Federal Reserve having control over monetary policy, it is largely responsible for The Great Depression.
Dear, dear Monkeyboy....
So, the Federal Reserve that was created in 1913 is the reason that the Stock Market crashed in 1929, which was one of the major factors that led to the Great Depression.
Thanks for clearing that up.
Last edited by World Citizen; 12-22-2009 at 01:38 PM..
So, the Federal Reserve that was created in 1913 is the reason that the Stock Market crashed in 1929, which was one of the major factors that led to the Great Depression.
Thanks for clearing that up.
you have absolutely no understanding of economics. It would benefit yourself to read a good book on Economics, The Federal Reserve and american monetary history. Look who is controlling the money supply and interest rates. It sure isn't the free market. If you knew even a scrap about economics you would understand. you probably think our current Fed chairman Ben Bernanke is doing a GREAT job. You'll see just watch and learn.
you have absolutely no understanding of economics. It would benefit yourself to read a good book on Economics, The Federal Reserve and american monetary history. Look who is controlling the money supply and interest rates. It sure isn't the free market. If you knew even a scrap about economics you would understand. you probably think our current Fed chairman Ben Bernanke is doing a GREAT job. You'll see just watch and learn.
This thread is not about economics except as it relates to the Stock Market collapse and the Great Depression.
You must be taking that class in school right now...
you have absolutely no understanding of economics. It would benefit yourself to read a good book on Economics, The Federal Reserve and american monetary history. Look who is controlling the money supply and interest rates. It sure isn't the free market. If you knew even a scrap about economics you would understand. you probably think our current Fed chairman Ben Bernanke is doing a GREAT job. You'll see just watch and learn.
Having studied economics rather extensively, I'm all ears to read your interpretation of monetary policy leading up to the Great Depression and the role of the Federal Reserve. So, please post away.
All of this talk about how the Democrats are bad for the country makes me think about the history of the Great Depression.
In the United States, the Republican Party was the dominant force from the Civil War to the Great Depression.
When you look at all of the factors involved in the Stock Market crash, how it got to where it was and why it was possible, it seems that the Republican Party has not learned anything from history.
Still, they cry and moan like they've been the great saviors of our country's economy....
THIS depression was caused by Republicans(Reagan and his deregulation... let the greedy lawless times roll!), furthered by Clinton and both Bu****s.....
The initial decline in output in the United States in the summer of 1929 is widely
believed to have stemmed from tight U.S. monetary policy aimed at limiting stock market
speculation.
The next blow to aggregate demand occurred in the fall of 1930, when the first of four
waves of banking panics gripped the United States. A banking panic arises when many
depositors lose confidence in the solvency of banks and simultaneously demand their deposits be
paid to them in cash.
Some economists believe that the Federal Reserve allowed or caused the huge declines in
the American money supply partly to preserve the gold standard. Under the gold standard, each
country set a value of its currency in terms of gold and took monetary actions to defend the fixed
price. It is possible that had the Federal Reserve expanded greatly in response to the banking
panics, foreigners could have lost confidence in the United States’ commitment to the gold
standard. This could have led to large gold outflows and the United States could have been
forced to devalue. Likewise, had the Federal Reserve not tightened in the fall of 1931, it is
possible that there would have been a speculative attack on the dollar and the Unites States
would have been forced to abandon the gold standard along with Great Britain.
Last edited by BigJon3475; 12-22-2009 at 05:38 PM..
THIS depression was caused by Republicans(Reagan and his deregulation... let the greedy lawless times roll!), furthered by Clinton and both Bu****s.....
THIS depression was caused by Republicans(Reagan and his deregulation... let the greedy lawless times roll!), furthered by Clinton and both Bu****s.....
Actually...
Quote:
Events of the 1920s
The Roaring Twenties were an era dominated by Republican presidents: Warren Harding (1920-1923), Calvin Coolidge (1923-1929) and Herbert Hoover (1929-1933). Under their conservative economic philosophy of laissez-faire ("leave it alone"), markets were allowed to operate without government interference. Taxes and regulation were slashed dramatically, monopolies were allowed to form, and inequality of wealth and income reached record levels. The country was on the conservative's preferred gold standard, and the Federal Reserve was not allowed to significantly change the money supply.
The fact that the Great Depression began in 1929, then, on the Republicans' watch, is a great embarrassment to conservative economists. Many try to blame the worsening of the Depression on Hoover, for supposedly betraying the laissez-faire ideology. As the time line in the next section will show, however, almost all of Hoover's government action occurred during his last year in office, long after the worst of the Depression had hit. In fact, he was voted out of office for doing "too little too late." The only notable exception to his earlier idleness was the Smoot-Hawley tariff of 1930, whose minor impact we shall explore in more detail later on.
But much more importantly, the economy was clearly turning downward even before Hoover took office in 1929. Entire sectors of the economy were depressed throughout the decade, like agriculture, energy and mining. Even the two industries with the most spectacular growth -- construction and automobile manufacturing -- were contracting in the year before the stock market crash of 1929. About 600 banks a year were failing. Half the American people lived at or below the minimum subsistence level. By the time the stock market crashed, there was a major glut of goods on the market, with inventories three times their normal size.
The fact that all this occurred even before the first act of government intervention is a major refutation of laissez-faire ideology...
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