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To: Pelham

I agree about the monetary contraction. The Fed did the wrong thing and did not supply sufficient liquidity. That is one thing that Bernanke is doing right. Smoot-Hawley also served to further restrict liquidity exacerbating the monetary contraction.


33 posted on 02/27/2009 7:20:37 PM PST by Wyatt's Torch (I can explain it to you. I can't understand it for you.)
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To: Wyatt's Torch

Smoot-Hawley couldn’t really affect liquidity, liquidity is strictly a banking/ credit market phenomenon. It could affect GNP by interfering with trade. Smoot-Hawley mostly harmed foreign concerns that sold to Americans, and at the next remove harmed American industries that those foreign firms would then have purchased from. But we are talking at most 5% of the American GNP. The negative effects of Smoot-Hawley were borne more by foreign firms than by American firms.


34 posted on 02/27/2009 7:33:22 PM PST by Pelham (Just Doing Jobs Americans Won't Do.- GW Bush)
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To: Wyatt's Torch

Make that anyone who has decided to start a manufacturing business, planned an overview of it, designed it (floorplanning, etc.) and run it until making a profit.


36 posted on 02/28/2009 12:15:51 AM PST by familyop (combat engineer (combat), National Guard, '89-'96, Duncan Hunter or no-vote, http://falconparty.com/)
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