Great Depression News Headlines

T

tradingbug

Some headlines after the crash and during the 50% rally during the Great Depression before the markets headed to new lows and disaster hit. Thought you guys might find it interesting.


January 13, 1930
“Reports to the Department of Commerce indicate that business is in a satisfactory condition, Secretary Lamont said today.”
– News item.

January 21, 1930
“Definite signs that business and industry have turned the corner from the temporary period of emergency that followed deflation of the speculative market were seen today by President Hoover. The President said the reports to the Cabinet showed the tide of employment had changed in the right direction.”
– News dispatch from Washington.

January 24, 1930
“Trade recovery now complete President told. Business survey conference reports industry has progressed by own power. No Stimulants Needed! Progress in all lines by the early spring forecast.”
– New York Herald Tribune.

March 8, 1930
“President Hoover predicted today that the worst effect of the crash upon unemployment will have been passed during the next sixty days.”
– Washington dispatch.

May 1, 1930
“While the crash only took place six months ago, I am convinced we have now passed the worst and with continued unity of effort we shall rapidly recover. There is one certainty of the future of a people of the resources, intelligence and character of the people of the United States – that is, prosperity.”
– President Hoover

June 29, 1930
“The worst is over without a doubt.”
– James J. Davis, Secretary of Labor.

August 29, 1930
“American labor may now look to the future with confidence.”
– James J. Davis, Secretary of Labor.
 
Everything right now is a confidence game, and a 'shell game,' at that.

It's actually more like a game of 'chicken.'

If the government can't convince consumers to spend more, whether by accessing savings or taking on more debt, they won't be able to stave off a depression, no matter how much money they print.

But they have to do this successfully, and soon.

If the consumers lose faith in what the government is saying, and retreat from spending, we edge closer to the precipice of a true depression, especially given how anemic things are now.

I have little faith the government can succeed in its efforts to snow the consumers of America, because way more information is available now to average Americans than in past episodes of history, and because of the continuing and intense job loss trend.

We are currently at a true unemployment rate of at least 16%, consumers really are trading down in every aspect of their spending, and they are also in real fear for their jobs and pensions and all that goes along with it, while watching their home values tank anywhere from 30% to 80%, depending on where they live.

This is not a promising situation.
 
Quote from Eliot Hosewater:

Every financial news story has a "recession is easing" comment to it, even if the news is bad.
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All to support the current rally and "gineys all a tingle" good feelings.

Could be (and I think likely is) a big bear market rally, suck-'em-in, so a good idea to not go overobard with one's convictions..
 
Quote from Roman Candle:

Thats right they want to shape public opinion.
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Thats right THEY want to shape public opinion.
 
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