Looks like it’s about to get like in 1929 again. Fasten your seat belts.🧐
(media.greatawakening.win)
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Wasn’t a huge contributing factor that most stock purchases in the 1920’s were bought on margin? This contributed to the panicked sell off and crash. How much stock is purchased with borrowed money these days?
What is so different today is money is being invested in the market because the economy sucks. And because no other investment is more attractive.
Unless Powell goes completely rogue and channels Volcker, the market will likely continue to be where money is invested. Of, course this is just one opinion.
Volcker? The Fed guy before Greenspan?
He was before most of our time--care to fill us in why that's important?
Sure, thankfully it wasn’t before my time. Thankful I’m still here!
Volcker executed a strategy to bring inflation under control by raising Fed rates to almost 18% which brought the economy to a grinding halt. Some people believe he killed any chance of Carter winning re-election.
I was young, but I remember it was pretty miserable. The only upside was if you had cash CD rates were around 18%, but inflation was 13% at the time.
I got married during that time. If you had money in the bank, ( I didn’t) the interest was incredible. I remember basic money market accounts earning 9-10%. CDs at 15-18% Now you’re lucky to get .03%.
That sounds like right around the time they were teaching us "the magic of compound interest" in Junior High.