Comments on: The folly at the onset of the Great Depression http://www.dinocrat.com/archives/2007/01/15/the-folly-of-the-onset-of-the-great-depression/ Thu, 09 Feb 2012 11:49:05 +0000 hourly 1 http://wordpress.org/?v=3.1.3 By: watcher7 http://www.dinocrat.com/archives/2007/01/15/the-folly-of-the-onset-of-the-great-depression/#comment-302303 watcher7 Sun, 13 Jan 2008 06:32:03 +0000 http://www.dinocrat.com/archives/2007/01/15/the-folly-of-the-onset-of-the-great-depression/#comment-302303 It amazes me that, even with the benefit of hindsight, that the conventional wisdom concerning the Great Depression is so superficial. While there a number of important factors involved, including the technological-driven restructuring taking place in the American economy, I will end this post with a quote that sums up part of the explanation. But I would recommend David M. Kennedy's Pulitzer Prize winning book "Freedom from Fear - American People in Depression and War, 1929-1945," as the best objective account of the Depression that I have read, so far. “... the flawed view of the Fed’s role in the Great Depression: If only the Fed had created $5bn and recapitalized the banking system. More money, so they believe, would have provided a (“mopping up”) remedy for disastrous boom-time excesses. It wouldn’t have worked. “The issue then, as it is today, is not some finite amount of liquidity to keep the banks solvent and markets liquid, but instead the enormous ongoing Credit Creation and Intermediation necessary to sustain levitated asset prices, incomes, corporate earnings and government receipts” (Doug Noland, Money Market Issues, prudentbear.com, August 24, 2007). It amazes me that, even with the benefit of hindsight, that the conventional wisdom concerning the Great Depression is so superficial.

While there a number of important factors involved, including the technological-driven restructuring taking place in the American economy, I will end this post with a quote that sums up part of the explanation.

But I would recommend David M. Kennedy’s Pulitzer Prize winning book “Freedom from Fear – American People in Depression and War, 1929-1945,” as the best objective account of the Depression that I have read, so far.

“… the flawed view of the Fed’s role in the Great Depression: If only the Fed had created $5bn and recapitalized the banking system. More money, so they believe, would have provided a (“mopping up”) remedy for disastrous boom-time excesses. It wouldn’t have worked.

“The issue then, as it is today, is not some finite amount of liquidity to keep the banks solvent and markets liquid, but instead the enormous ongoing Credit Creation and Intermediation necessary to sustain levitated asset prices, incomes, corporate earnings and government receipts” (Doug Noland, Money Market Issues, prudentbear.com, August 24, 2007).

]]> By: bird dog http://www.dinocrat.com/archives/2007/01/15/the-folly-of-the-onset-of-the-great-depression/#comment-301111 bird dog Tue, 16 Jan 2007 13:48:21 +0000 http://www.dinocrat.com/archives/2007/01/15/the-folly-of-the-onset-of-the-great-depression/#comment-301111 Dino: Off-topic, but email me. Your system blocks all of our links to you - let's fix it. Dino:

Off-topic, but email me. Your system blocks all of our links to you – let’s fix it.

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