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To: UCFRoadWarrior; Will88

The proposition is that we’d have had a recession and not a depression, minus the meddling.


7 posted on 08/28/2009 4:51:18 AM PDT by decimon
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To: decimon
The proposition is that we’d have had a recession and not a depression, minus the meddling.

Nothing they discuss would have changed the result of the Fed's action and/or inaction that shrunk the money supply by 30% the first four years after the stock market crash.

They sound like the Smoot-Hawley folks who say the same for their favorite boogieman. It just seems like another very narrow focus. The two links below discuss the GD more thoroughly. From the first link:

The great depression and its offspring, the New Deal, could both have been avoided if the Federal Reserve had performed the task assigned to it. All the Federal Reserve had to do to avoid the Depression and the subversion of the American constitutional order was to purchase $1 billion in government securities during the 10-month period from December 1929 to October 1930. The result would have been an increase, instead of decrease, in high-powered money, and the banking crisis that began in the autumn of 1930 would not have occurred.

he Fed's "Depression" and the Birth of the New Deal

http://www.thefreemanonline.org/featured/the-great-depression-according-to-milton-friedman/

11 posted on 08/28/2009 5:19:42 AM PDT by Will88
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