Five Myths About the Great Depression

Wall Street Journal ^ | 11/4/2008 | Andrew B. Wilson

[Ronzo]

The current financial crisis has revived powerful misconceptions about the Great Depression. Those who misinterpret the past are all too likely to repeat the exact same mistakes that made the Great Depression so deep and devastating.

Here are five interrelated and durable myths about the 1929-39 Depression:

[ChinaGotTheGoodsOnClinton]

I think it should read: “Spread YOUR wealth around”.

[rabscuttle385]

bookmark

[cherry]

wow...that Calvin Coolidge was a bright guy

[EBH]

You know I heard about that today. Seriously consider canceling my card.

[KoRn]

/mark

[monkeyshine]

4. Greed caused the stock market to overshoot and then crash.

This is definitely a myth. The money pools destroyed the market with heavy short bets, profit taking, and rumor mongering. Those money pools are virtually indistinguishable from the hedge funds of today. While Congress is bailing out the "insurers" and "banks" some others are making a fortune off shorts and their Credit Default Swaps. AIG and the Banks are too stupid to be bailed out. Instead of throwing money at them, Congress should have declared the CDS' illegal and returned the investment money (with bank interest) to the originators instead of paying off those bets with trillions of dollars.

[Ronzo]

Thanks for the link LS, I'll make sure to add that to my Christmas list!

If you have any other recommendations, I'd love to hear them.

As for me, I currently have this sitting on my shelf, waiting to be read: FDR's Folly: How Roosevelt and His New Deal Prolonged the Great Depression.

[allmendream]

Ol Calvin Coolidge and the first lady were touring a farm separately. The farmer got embarrassed when a rooster made a big production out of having his way with a hen.

Mrs. Coolidge, nonplussed, asked “how many times a day would you say that rooster has his way with a hen?”

“About 20 times a day” the farmer answered.

“Be sure to tell that to President Coolidge.” she remarked.

So when the President came by the chickens the farmer told him “The First Lady wanted me to be sure to tell you that the rooster there has his way with a hen about 20 times a day.”

“Every time the same hen?” Coolidge asked.

“Every time a different hen.” the farmer answered.

“Tell that to Mrs. Coolidge” Cal replied.

In Animal behavior the tendency of a male who will turn down the mating overture of a female he has already inseminated but somehow find the strength if a “naive” female is introduced is known as “The Coolidge Effect”.

[Skooz]

bump and bookmarked

[Smokin' Joe]

I cut mine when they refused to cut the biker purse snatcher commercial and have never missed it. The next issue of American Motorcyclist had the corporate cards chopped up on the cover...

I do not recall how many accounts they lost over that, but it was a bunch.

[PhilDragoo]

Yeah, I don’t think the Rezko Mansion will be open as a homeless shelter any time soon.

[Skooz]

FDR's Folly: How Roosevelt and His New Deal Prolonged the Great Depression.

Just added it to my wish list. Thanks.

[CottonBall]

Well, it appears from the article that Hoover acted more like a D than an R. Big governemnt projects and massive spendning. Bush is our Hoover, while Obama will be an even worse Roosevelt.

[southland]

bookmark

[southland]

bookmark

[Right Angler]

bump

[gogeo]

Cal was known as a man of few words. One story has a society lady talking with him at a party...

"President Coolidge, I've heard you never say anything, but you seem like such a nice man! Do you know a friend bet me I couldn't get three words from you?"

"YOU LOSE."

[peeps36]

I could almost guarantee that Obama and the democrats will destroy our economy with their attempts to fix it. They will bring us hyper inflation and the destruction of the US currency. Printing money, raising taxes and creating more debt is the exact opposite of what needs to be done. We are likely headed for another great depression that will be bigger and deeper than the last.

[Alia]

The author is so right. Thank you for posting this. Mr. Wilson does one heck of a job in synopsizing that which tomes have been written. Makes those lines really clear.

[djsherin]

My thoughts exactly.