UnThreaded | Threaded | Whole Thread (16) | Ignore Thread Prev | Next
Author: baanista One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 740469  
Subject: Re: Is There A Real Need For Cash Reserves Date: 2/6/2000 2:43 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
xhail said: I once heard that big players were purposely pushing a lot of crap stock back then to drive up the prices and then sell out quickly, cashing in, which was partly responsible for the crash.

As opposed to say, internet startups with no profits and no sign of any profits any time soon? <grin>

Seriously, the world economy was as global, if not more so back around 1900. The 1920's were a time rapid technoligical innovation (cars, radios, etc.) but also of public resistance to trade. The Smoot-Hawley tariffs are often credited with helping to extend the Crash of 1929 into the Great Depression. In the 20's, there were dozens of car companies in the US, now there are 3. In the 20's, all sorts of businesses tried to attach "Radio" to their names or products (Think "Radio Flyer" wagons for kids.).

This is NOT the first time new technologies have transformed America. There ARE lessons to be learned from the past. Sure we are now blessed with better regs and better regulators, but I fear the business cycle is still alive (and very well rested!).

The Economist magazine is a great source those interested in the "Bubble" side of the argument. Some stuff is free at their web site, www.economist.com. Back issues should be at any decent library. PS, The Economist is great for traveling, more editorial content per page than anywhere, yet the thinnest mag on the shelf. Takes a looong plane trip to read one from cover to cover.

Regards,
Baanista
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (16) | Ignore Thread Prev | Next

Announcements

Post of the Day:
Value Hounds

Kate Spade's Wild Ride
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement