Quote:
Originally Posted by 6South
Actually the first crash was stopped by a group of Wall Street billionaires pumping a ton of money into the market to prop it up and boost confidence. Exactly what the government did with its "stimulus" package.
They saw the writing on the wall and that the govt wasn't going to act so they acted.
Granted, it was pure self preservation. In reality they did it to buy themselves time so they could sell off stocks and send money out of the country before the larger crash hit. It was just a stop gap to give the insiders time to save their own asses. The same thing the stimulus package was created for, to give the insiders enough time to save their asses and stop the public from tipping the balance.
Depressions and market crashes are purely mental. The market decides the gig is up and the money train comes to a halt. Until the people feel safe enough to start that train rolling again all anyone can do is try and spend their way out.
Tony Soprano said it best "Stocks!? You have to be involved in some insider trading shit for that to pay off!"
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Those wall street billionaires could not pass the legistlation that I mentioned, they could only spend their OWN money. That did nothing to slow subsequent growth, and so "spending through it" could actually work.
The government not only spent money that it had not actually created, but instead took it, by printing, borrowing and taxing, it also then decreases confidence in future growth by passing new laws to try to control business centrally.
Using the stock market as a measure of the economy then also points to WWII not being the cause of the recovery, since it did not really come back until the war was over.
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