Debt markets suffer a crisis of confidence
Ten-year UK government bonds fell and yields rose 4 basis points to 4.068pc
during Monday’s session as negative sentiment took hold of the London gilt
market.
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Americans in London
Under whose party leadership did the Great Depression, and this economic depression, begin?
Read this… then decide!!!
The Great Depression in the United States began on "Black Tuesday" with the Wall Street crash of October, 1929 and rapidly spread worldwide. The market crash marked the beginning of a decade of high unemployment, poverty, low profits, deflation and lost opportunities for economic growth and personal advancement in the United States. Although its causes are still uncertain, the basic cause was a sudden loss of confidence in the economic future. The traditional explanation is a combination of high consumer debt, ill-regulated markets that permitted malfeasance by banks and investors, cutbacks in foreign trade, and growing wealth inequality, all interacting to create a downward economic spiral of reduced spending and production. The initial government response to the crisis exacerbated the situation; protectionist policies like the 1930 Smoot-Hawley Tariff Act, rather than helping the economy, merely strangled global trade. Industries that suffered the most included agriculture, mining, and logging as well as durable goods like construction and automobiles that people postponed. (Wikipedia)
You know that if we don’t learn from our mistakes, we’re destined to repeat the same!!!
The Smoot-Hawley Tariff Act (sometimes known as the Hawley-Smoot Tariff Act)[1] was an act signed into law on June 17, 1930, that raised U.S. tariffs on over 20,000 imported goods to record levels. In the United States 1,028 economists signed a petition against this legislation, and after it was passed, many countries retaliated with their own increased tariffs on U.S. goods, and American exports and imports plunged by more than half. In the opinion of most economists, the Smoot-Hawley Act was a catalyst for the severe reduction in U.S.-European trade from its high in 1929 to its depressed levels of 1932 that accompanied the start of the Great Depression.
That would have been Senator Reed Smoot and Representative W.C. Hawley — both Republicans.
Hey, I’m impressed — one out of seven!!!
Marie:
I did ask each responder to read the information found in Wikipedia. You not only did not answer the question, but apparently did not read or notice the current conditions being equated with those of the 1930’s. I ask you to look again, only more closely.
The basic cause was a sudden loss of confidence in the economic future. The traditional explanation is a combination of HIGH CONSUMMER DEBT, ILL-REGULATED MARKETS that PERMITTED MALFEASANCE by BANKS AND INVESTORS, CUTBACKS in FOREIGN TRADE, and GROWING WEALTH INEQUALITY, ALL INTERACTING TO CREATE A DOWNWARD ECONOMIC SPIRAL of reduced spending and production. The initial government response to the crisis exacerbated the situation; protectionist policies like the 1930 Smoot-Hawley Tariff Act, rather than helping the economy, merely STRANGLED GLOBAL TRADE. INDUSTRIES that SUFFERED the most included agriculture, mining, and logging as well as durable goods like construction and AUTOMOBILES that people postpone.
Capitalists. They are mainly Republicans but have pulled many Democrats and others in over time.
Global capitalists have always tried to undermine the US but Bush waved them in in droves and they did seek, take, and destroy.
Never be loyal to Capitalists because you will blow your brains out in the end.
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It began with Democratic leadership in Congress. Congress controlls the economy.
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Hoover’s policy also raised taxes in a depression(sound familiar?). FDR extended the Depression with the "New Deal" and WWII got us out of the Depression.
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Yeah, we are and it was the credit injections and attempts to price fix and prop up industry that turned the recession into a depression and is about to do the same thing now.
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I don’t know where you got your copy and paste job here from, but your info is incorrect. The causes are NOT unknown for the stock market crash. Every single account I have ever read up til now has blamed WWI for the crash. It diminished our resources and stole our work force. Every piece of scrap metal was used to keep our soldiers armed. Every spare it of food was sent to our soldiers. The people that could work(including women) were working to make weapons instead planting food,etc. All at once there was not enough food to go around and prices soared and so people were reclaiming their money from banks and the stock market. Nobody was investing because people were paying through the nose for a cup of wheat.
Sure, the government played a role in it. They were focusing entirely on keeping our freedom(i.e. the war) and not on maintaining our basic necessities.
You are so caught up in your own "genius" that you are not remembering all the facts. These are two entirely different situations. I do blame our leaders for the situation our economy is in now. But the factors are not the same.
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The Great Depression started under Republican party president Hoover with the direction of the fascist Robber Barons. The stock market crashed because of excessive speculation just like the one now. WWI had NOTHING to do with the American depression since the war had been over for more than 10 years. The current one started back in 2001 with the Bush junta’s disastrous fiscal and economic policies.
FDR got the USA out of the Depression with his WPA and CCC which built infrastructure, schools and electrified the country providing jobs and feeding millions and stimulating the economy. The country would have been even better if WWII hadn’t started because it was well on the way to recovery. Because FDR had a trained workforce, solid infrastructure and instilled a "can do" attitude in the American public, the USA was able to respond to an attack from Japan and a declaration of war from Germany. If it wasn’t for FDR, we would be speaking German or Japanese. This lie about WWII getting the USA out of the depression is a lie that the GOP has been spouting in recent years to denigrate the miracle that was the FDR presidency, a presidency that set the country up for prosperity well into the 70’s until it started to slide with Nixon and Ford and has truly been screwed with Reagan/Bush/BushII.
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Marie H : You couldn’t possibly be more wrong. World War I lasted from 1914-1918. Either explain how the war caused an economic crash 10 years later, or maybe you should reread "every single account" that you have ever read. And the funny part is, you are accusing the questioner of being wrong, and talking down to him at the same time, while you are so far from the truth.
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