“The nation is marching along a permanently high plateau of prosperity.” October 1929, Yale University economist Irving Fisher. Five days later, the bottom dropped out of the stock market and ushered in the Great Depression, the worst economic downturn in American history.
“”Our economy, I think, is still — the fundamentals of our economy are strong.” September 2008, Republican Presidential hopeful John McCain.
Historians refer to October 24, 1929 as “Black Thursday.” On this day, people began dumping their stocks as quickly as they could. Sell orders inundated market exchanges and the bull market suddenly shifted to a bear market. By that evening, J.P. Morgan and other financiers bought up stock to stop the panic and keep the market afloat. On Friday, October 25, the House of Morgan continued to keep the market stable and it seemed that the panic was over. Yet, many investors began to worry during the weekend.
September 24, 2008: Warren Buffett announces he would pour $6 billion into investment bank Goldman Sachs.
1929: Between October 29 and November 13, the day when stock prices hit their lowest point, over $30 billion disappeared from the American economy. This amount was comparable to the total amount of money that the federal government had spent to fight the First World War.
2008: The $700 billion taxpayer bailout would exceed the $600 billion that has been spent on the war in Iraq
Please support us by using Babylon search engine