80 years ago on this date 10-24-1929 was the start of Great Depression Who caused it and why? Many people blamed the crash on commercial banks that were too eager to put deposits at risk on the stock market....sound familiar maybe.. I wasn't there (I was born in 1969) I only know what I read in the history books and we all know history is in the eyes of the writer of it. So what really happened?
The day of the stock market crash.
At 1 p.m. on the same day (October 24), several leading Wall Street bankers met to find a solution to the panic and chaos on the trading floor. The meeting included Thomas W. Lamont, acting head of Morgan Bank; Albert Wiggin, head of the Chase National Bank; and Charles E. Mitchell, president of the National City Bank of New York. They chose Richard Whitney, vice president of the Exchange, to act on their behalf. With the bankers' financial resources behind him, Whitney placed a bid to purchase a large block of shares in U.S. Steel at a price well above the current market. As traders watched, Whitney then placed similar bids on other "blue chip" stocks. (I read this on Wikipedia, the free encyclopedia )
Well bankers giving money to people that don't know how to use it....That sounds familiar don't you think? I don't know what happened that day or why people did what they did. But I do know right before the crash the US was having its hey day of economic growth....and then it just fell...I guess what goes up must come down.
So now we are in a down side just like Oct. 24, 1929 we can't change that it happened and it's here, we are in it now. So I say what goes down must come up....always look for the positive things nothing is permanent. The economy is going to go up and down a few times in your life no matter what you do.
I say go with the flow we are going to be starting back up the hill soon ...But be prepared for the next ride down it will happen if you like it or not....It is history and we make history every day.......peace zane
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