Talk:Crash of 1929

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Revision as of 13:51, 9 June 2010 by imported>Russell D. Jones (→‎Mild Downturn???: noun verb agreement)
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 Definition:  the sharp fall in prices on the New York Stock Exchange that contributed to the severity of the Great Depression [d] [e]
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Mild Downturn???

Friedman and Schwartz noted that during the sixty days prior to the Crash, productivity was falling at annual rate of 20%, prices were falling at an annual rate of 7.5%, and personal income was falling at an annual rate of 5% <1963, p. 306>. Raburn Williams <1994, pp. 138-9> notes that the index of industrial production declined from 125 in June to 118 in October, which is an annualized drop of around 27%. If a 20% (or 27%) annualized decline is "mild" I'd hate to see what is meant by severe. Russell D. Jones 18:29, 9 June 2010 (UTC)

So these data, it seems to me, show that the cause of the crash was that speculators finally came to realize that the commodity in which they were speculating was loosing value and they got out. That's the cause of the crash. This article tends to focus on what caused the speculative bubble in the first place. Russell D. Jones 18:51, 9 June 2010 (UTC)
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