Friday, October 03, 2008

Going back to Hoover Days

Here we go again... the Bailout Rescue Plan repeats history...

October 1929....
If the Federal Reserve had an inflationist attitude during the boom, it was just as ready to try to cure the depression by inflating further. It stepped in immediately to expand credit and bolster shaky financial positions. In an act unprecedented in its history, the Federal Reserve moved in during the week of the crash-the final week of October-and in that brief period added almost $300 million to the reserves of the nation's banks. During that week, the Federal Reserve doubled its holdings of government securities, adding over $150 million to reserves, and it discounted about $200 million more for member banks. Instead of going through a healthy and rapid liquidation of unsound positions, the economy was fated to be continually bolstered by governmental measures that could only prolong its diseased state.

-- America's Great Depression, Murray Rothbard

What kind of Micky Mouse operation is this?

For anyone who is interested, there is a timeline of the Great Depression here: America's Great Depression Timeline

1 comment:

Nadja Magdalena said...

Excellent post. I think I will be linking to it on my blog.

*smile* My word verification is "ybfun". My question: "ynot?"