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To: ek_hornbeck

A stock market crash happened in late 1929. That didn’t mean we had to have a decade-long depression?


13 posted on 03/09/2018 11:32:55 AM PST by nickcarraway
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To: nickcarraway
A stock market crash happened in late 1929. That didn’t mean we had to have a decade-long depression?

The stock market crash was the bursting of a speculative bubble. Speculation inflated the value of many company's stocks far above what their assets were conceivably worth. Additionally, the stock bubble encouraged banks to take money out of low-risk securities and put them into high-risk securities. It was much like what happened in 2008, only worse. Or do you think that tariffs caused the 2008 real estate market collapse too?

18 posted on 03/09/2018 11:38:55 AM PST by ek_hornbeck
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