So how did Hoover mess up which led to the Great Depression? Silent Cal leaves office on March 4, 1929 and the stock market melts down on October 24th, 1929.
Smoot-Hawley?
I am currently reading Reich’s latest “masterpiece”, and he claims income inequity led to both the Great Depression and the “Great Recession”. Reich’s contention is that since the poorer boats do not rise as fast and they should rise as fast, that American consumers take on debt to make sure they rise as fast as the rich. The rich, needing places for their ill gotten wealth speculate and create the Crash bubbles (partially fueled by the inability of the middle class to service their debt). Same scenario repeated in 2008.
It's weird that Reich almost gets something right - 'extra' money does go into bubbles. This is why some Austrian economists predicted the housing bubble. Tax policy directed inflation into one sector rather than into general inflation, disguising the dollar debasement.
This probably had something to do with the Crash of '29, but honestly, I'm not enough of a goldbug to give the whys and wherefores. Despite my tagline, I think Reagan overall is #1 through success both foreign and domestic.
I came across this yesterday. I have never heard this before. They are claiming that an accounting change from "hold to maturity" to "mark to market" caused asset instability that led to the crash.
Time Bomb | Progressives’ Destruction of Private Sector Wealth and Control Of Capital and Property
"when Hoover also imposed mark to market accounting in 1929, ending the Roaring 20’s and launching into the Depression for the greatest shake out Private Sector ownership and control of wealth of that time"
"This continued until the Private Sector main stream banks and businesses were able to prevail on FDR to reinstate Private Sector hold to maturity accounting in 1938."