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To: the invisib1e hand

IMHO, the crash on its own would have caused a recession or a mini-depression. It took bad government policy (Smoot-Hawley, etc.) to turn it into the Great Depression. In fact, anticipation of Smoot-Hawley might have helped cause the crash, then made the economy worse after being enacted.


13 posted on 12/24/2008 10:09:56 AM PST by antiRepublicrat
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To: antiRepublicrat
I think I am of the opinion, for the moment at least, that healthy markets don't crash. Only overleveraged ones do.

Given that, the catalyst is merely the catalyst. Perhaps it takes really bad policy to drive a market to the point where it's vulnerable to a crash. But anything could tip it off: bad policy, shouting "fire," maybe even a killer-bee attack.

15 posted on 12/24/2008 4:16:00 PM PST by the invisib1e hand (appeasement is collaboration.)
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