Jubilee Prosperity

It was another government quick fix that did not last, despite the popularity of brilliant mathematics Cambridge Don Economist Fabian Socialist paedophile 1^st Baron John Maynard Keynes with politicians today who think they can get something for nothing and raise taxes indefinitely, notwithstanding.

http://en.wikipedia.org/wiki/John_Maynard_Keynes

Devaluation of the dollar did not get America out of the Depression, but provoked International Trade Wars which prolonged the Depression until 1949, some twenty years after the Crash of 1929.

http://mises.org/freemarket_detail.aspx?control=258

In real terms, including dividends, the stock market did not recover to previous highs until the Sixties, some two generations later.

http://www.westegg.com/inflation/

The Bank Holiday Emergency Banking Act did not occur until 1933, the fourth year after the Crash.

http://en.wikipedia.org/wiki/Emergency_Banking_Act

The Unconstitutional Gold Reserve Act of 1934 made gold clauses unenforceable, and changed the value of the dollar in gold from $20.67 to $35 per ounce so citizens could not benefit, but lose the value of their savings.

This did not occur until the fifth year after the crash.

http://en.wikipedia.org/wiki/Executive_Order_6102

What we experienced in 2008 was more a Panic based on Insolvency, than a Crash based on lack of Liquidity, so the appropriate solutions may be quite different.

The Bear Market Rally in bonds, commodities, metals and stocks we correctly called in February and March 2009 was perhaps not generational economic lows, but a liquidity-fueled mania that may end with more destruction of life savings and economic disaster for Johnny-Come-Latelies who jump in confidently now.

Pages: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

This entry was posted on Tuesday, October 27th, 2009 at 5:42 pm and is filed under Financial Planning. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.