Isn't it amazing how truth tellers like Mr Connally are always sacrificed on the altar of political expediency.

"It was cause by over-leveraged speculation."

And where the heck did all the capital come from for that speculation----that's right; excessive money printing----just like the mess we're in.

"Remember those people jumping out of skyscraper office windows?"

And if you would read real data instead of myth, you would know the suicide rate then was no different then previous and later data----it just makes the story better.

What do yo do; walk in your sleep 24 hours a day?

#3 | Posted by HeliumRat at 2013-02-23 06:45 PM | Reply

#3 | Posted by HeliumRat at 2013-02-23 06:45 PM | Reply |

"Murray Rothbard argues central banks played a large role in creating an environment of loose credit prior to the onset of the Great Depression, as well as the subsequent ineffectiveness of central bank policies, which he argues delayed necessary price adjustments and prolonged market dysfunction.[17] Rothbard begins with the premise that in a market with no centralized monetary authority, there would be no simultaneous cluster of malinvestments or entrepreneurial errors, since astute entrepreneurs would not all make errors at the same time and would quickly take advantage of any temporary, isolated mispricing. In addition, in an open, non-centralized (uninsured) capital market, astute bankers would shy away from speculative lending and uninsured depositors would carefully monitor the balance sheets of risky financial institutions, tempering any speculative excesses that arose sporadically in the finance markets. In Rothbard's view, the cycle of generalized malinvestment is greatly exacerbated by centralized monetary intervention in the money markets by the central bank."

You've got to get off that helium.

#6 | Posted by redlightrobot at 2013-02-24 10:57 AM | Reply

Thanks, red. It would be nice if the citizenry of this country would figure out the Fed exists for the big monied guys and not for the average citizen. Once we went completely off the gold standard in 1971, the Fed went nuts and the bubbles began again with all its' malinvestments. It's interesting that back then is when the average citizen's wages didn't keep up with inflation. The banking interests aren't your friends but unfortunately they rule Washington.

Consideration should be given to what malinvestments and financial mal-adjustments all the Fed's increasing monetary base will produce in the future. The Japanese are now joining the party in a big way and you can bet Draghi and the ECB will also. They at this point have only "jaw-boned" but you can bet they'll ultimately be forced into it---the German people won't much longer put up with the German government and banks subsidizing the rest of the European "rotten" hearts.

How can countries with separate governments but one currency?

#2 | Posted by DavetheWave at 2013-02-23 05:27 PM | Reply |

Very difficult and that's why the EURO is in trouble----you have (17?) nations with different cultures/politics along with different economies/interests that are supposed to adhere to a set of standards----then they quietly don't adhere to those standards since the folks and the political self-interest machines don't allow it. Originally their own currencies in trade would have put a stop to malinvestment on a large scale but once the Euro was instituted, there was no longer controls on the largesse.