Talk:Crash of 1929

From Citizendium
Revision as of 13:51, 9 June 2010 by imported>Russell D. Jones (→‎Mild Downturn???: cause?)
Jump to navigation Jump to search
This article is developed but not approved.
 Main Article
 Discussion
Related Articles  [?]
Bibliography  [?]
External Links  [?]
Citable Version  [?]
Timelines [?]
Tutorials [?]
 
To learn how to update the categories for this article, see here. To update categories, edit the metadata template.
 Definition:  the sharp fall in prices on the New York Stock Exchange that contributed to the severity of the Great Depression [d] [e]
Checklist and Archives
 Workgroup categories:  economics and history [Please add or review categories]
 Talk Archive:  none  English language variant:  British English

Mild Downturn???

Friedman and Schwartz noted that during the sixty days prior to the Crash, productivity was falling at annual rate of 20%, prices were falling at an annual rate of 7.5%, and personal income was falling at an annual rate of 5% <1963, p. 306>. Raburn Williams <1994, pp. 138-9> notes that the index of industrial production declined from 125 in June to 118 in October, which is an annualized drop of around 27%. If a 20% (or 27%) annualized decline is "mild" I'd hate to see what is meant by severe. Russell D. Jones 18:29, 9 June 2010 (UTC)

So this data, it seems to me, shows that the cause of the crash was that speculators finally came to realize that the commodity in which they were speculating was loosing value and they got out. That's the cause of the crash. This article tends to focus on what caused the speculative bubble in the first place. Russell D. Jones 18:51, 9 June 2010 (UTC)
Retrieved from "https://citizendium.org/wiki/index.php?title=Talk:Crash_of_1929&oldid=541802"