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To: patriciaruth
Panics and Depressions have NOT always been caused by the stock market.

But yes, there are a great many safety-nets in place now, which stem bank runs and market collapses, which were absent in the past. That's part of it.

Panics and Depressions are the final steps in a long line of bad things happening, from recessions turning downwards, to continual strikes, which in turn deflate the markets and with people out of work, purchases goes down which lead to mortgage defaults, etc.

The GREAT DEPRESSION was NOT caused by just the Crash of '29! Most of the world was already in a vast Depression ( fueled by the loses of WW I, the horrific Treaty of Versailles, and the devastating war reparations France demanded be paid by Germany and Austria and their allies.

And then, there were the unending coal and other strikes in England, with combined with the huge loss of life in WWI, followed by the devastating Spanish Flu, damned near ruined that economy.

Though most people think that America "roared" throughout the 1920's, the first 1/2 of that decade was pretty bleak here as well; economically speaking.

But, if you want a more detailed explanations of depressions, just ask, since I know that I'/ve somewhat veered off that, in this reply.

222 posted on 07/28/2005 12:01:44 AM PDT by nopardons
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To: nopardons

Yes, continue about some of the things that go into the snowballing effect of bad trends or events.

When I said unemployment checks, I was referring the unemployment insurance that puts money into unemployed workers pockets to keep them in the consumer pool (and able to pay their mortgage) until they can get another job.


233 posted on 07/28/2005 12:13:48 AM PDT by patriciaruth (They are all Mike Spanns)
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