News from 1930

[Sigma]

Being a daily summary based upon my reading of the Wall Street Journal from the corresponding day in 1930.

An interesting site:  http://newsfrom1930.blogspot.com/2009/07/wednesday-july-9-1930-dow-21908-075-03.html

Washington Irving's book “The Great Mississipi Bubble” republished by Random House. "The story was written about a hundred years ago and the actual event occurred more than two hundred years ago, but the narrative ... will interest many who witnessed the recent debacle of stock prices." A couple of quotes from the book: The boom - "Every now and then the world is visited by one of those delusive seasons when the 'credit system,' as it is called, expands to full luxuriance; the broad way to certain and sudden wealth lies plain and open ... "; The bust - "a panic succeeds, and the whole superstructure built upon credit and reared by speculation crumbles to the ground, leaving scarce a wreck behind."

[Doctor_K]

To paraphrase...

"Those ignorant of history are doomed to repeat it."

Fascinating find!

[urbanlibertarian]

We are in the process of repeating most of the mistakes made in the past 10-15 years by Japan, i.e. stimulus that doesn't stimulate and propping up failing businesses and industries turning them into "zombie" businesses.