Sunday, March 27, 2011

News from 1930


An "A" from the Q&A on the Just what is the point of this blog? page at ikedim's News from 1930 blog:

I believe 1929-1930 has a couple of important similarities to 2008-2009. First and fundamentally, there was a big buildup of debt leading up to both. This was followed by a couple of major economic problems, including many banks running into trouble and a loss in perceived wealth by lots of people. These problems in turn have deflationary implications since they lead to less credit and spending ...

First and fundamentally, there was a big buildup of debt.

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