Quote:
Originally posted by High Quality
As for stock market crashes... the 1929 crash was proven also to be due to government intervention. In his book "America's Great Depression" Murray Rothbard (famous encomoist) shows how the government, through monetary policy increased the money supply artifically (inflation), and thus created the "roaring twenties". The end result of course was over valued stocks to the point of internal collapse of 1929.
Hope that helps, once again 
|
I'm going to have to checkthat out because I'm still wondering what % human psychology played in that. In other words, yes the government did something that was a cause, but was the direct effect a logical one or was it based on the human reaction to the originating cause? Same point I was driving at the value of the dollar decreasing in part because some greedy people jack their prices when they realize there is more money out there to be spent.
An interesting thought experiment here: If by some miracle all humans decided to never raise a price again, and the world goverments all gave their population a cash reward of $1 million [insert money type], what would happen?
In theory everyone would be rich. If no prices for anything go up how can this not be the result?