Quote:
Originally Posted by galleryseek
Wrong. The great depression was caused by the monetary policies set forth by the newly created federal reserve. They're the same culprit for the housing bubble. Their easy credit policy (tampering with the free market) lead to an unsustainable credit-driven boom.
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The Fed was created in 1913 not 1929. The Depression was caused by bankers who took every dollar and invested in Wall Street, other hair-brained schemes or just plain stole the money. The trouble in 1929 was like every other investment bubble.
Same damn thing happened when Regan deregulated the savings & loans. Instead of investing in mortgages they started investing in strip joints and any con man claiming to own a gold mine or oil well. System worked from the '30s until deregulation in the '80s. Same thing with banks.
If your theory of the Fed is to blame, we would have had the disaster before WW I.