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To: crz

“The depression was caused nearly exclusively by cheap money..the result of the federal reserve.
Credit.”

The opposite is true. The depression was caused by the federal reserve raising interest rates, and tightening the money supply in 1928. They triggered the stock market collapse, and didn’t loosen the policy which held back growth. Money supply growth in the 20s was modest, around 5% a year - not enough to cause a depression.


48 posted on 04/03/2025 12:25:20 PM PDT by Wayne07
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To: Wayne07

Nope. Cheap money. Credit was rampant.

Your opinion of interest rates had an effect that youll get no arguement from me but, credit was offered all over the place, especially in agriculture. If you think any lesd, then you need to look at how many farms were reposessed during the depression. Then, the banks failed and entire busineeses were destroyed.

The ratio of non secured debt is so high now we will be lucky to survive this in tact.

Money was cheap then, it is still cheap now.


52 posted on 04/03/2025 1:07:01 PM PDT by crz
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