#Some memorable quotes from times of economic crisis

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Feb 14, 2009, 2:54:10 PM2/14/09
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Is this 1930 all over again?


Economicrot

February 13, 2009



Before moving on to the main topic allow me to point out that Timmy
Geitner (our new Treasury Secretary)

wasted no time getting up to speed as the new ring-leader for the Plunge
Protection Team (PPT). As you can see in the DOW chart below, the PPT
fingerprints were all over the markets yesterday…

Just take a close look at the last hour of trading - at precisely one
hour before close the markets were massively pumped - free market society
my A@@!



Moving On… Is this 1930 all over again?

The Great Depression started with the stock market crash of 1929, but the
markets didn't bottom out until 1933. Along the way there were several
major rallies, yet the overall trend was bearish in nature and new lows
were periodically made after these bear market rallies faltered.


Anyway, much like today - where many "experts" advise that the markets
are ripe for a re-entry point and our economy will soon turn around -
pundits and leaders of the depression era were consistently telling folks
"The Bottom is in"…

Those who took this "expert" advice did so at their own peril - and
ultimately most were creamed as the markets continued to fall into the
abyss for several years.


Allow me to share a few quotes from the Depression Era:
"We will not have any more crashes in our time." - John Maynard Keynes,
1927

"There will be no interruption of our permanent prosperity." - Myron E.
Forbes, President, Pierce Arrow Motor Car Co., January 12, 1928

"There is no cause to worry. The high tide of prosperity will continue."
- Andrew W. Mellon, Secretary of the Treasury, September 1929


"Stock prices have reached what looks like a permanently high plateau." -
Irving Fisher, Ph.D. in economics, Oct. 17, 1929


"Secretary Lamont and officials of the Commerce Department today denied
rumors that a severe depression in business and industrial activity was
impending, which had been based on a mistaken interpretation of a review
of industrial and credit conditions issued earlier in the day by the
Federal Reserve Board." - New York Times, October 14, 1929


"This crash is not going to have much effect on business." - Arthur
Reynolds, Chairman of Continental Illinois Bank of Chicago, October 24,
1929


"…despite its severity, we believe that the slump in stock prices will
prove an intermediate movement and not the precursor of a business
depression…" - Harvard Economic Society (HES), November 2, 1929


"The Government's business is in sound condition." - Andrew W. Mellon,
Secretary of the Treasury, December 5, 1929


"President Hoover predicted today that the worst effect of the crash upon
unemployment will have been passed during the next sixty days." -
Washington Dispatch, March 8, 1930


"The spring of 1930 marks the end of a period of grave concern… American
business is steadily coming back to a normal level of prosperity." -
Julius Barnes, head of Hoover's National Business Survey Conference, Mar
16, 1930


"While the crash only took place six months ago, I am convinced we have
now passed the worst and with continued unity of effort we shall rapidly
recover. There is one certainty of the future of a people of the
resources, intelligence and character of the people of the United States
- that is, prosperity." - President Hoover, May 1, 1930


"The worst is over without a doubt." - James J. Davis, Secretary of
Labor, June 29, 1930


Gentleman, you have come sixty days too late. The depression is over." -
Herbert Hoover, responding to a delegation requesting a public works
program to help speed the recovery, June 1930
"We have hit bottom and are on the upswing." - James J. Davis, Secretary
of Labor, September 12, 1930


"President Hoover has summoned Colonel Arthur Woods to help place
2,500,000 persons back to work this winter." - Washington dispatch,
October 21, 1930


"I see no reason why 1931 should not be an extremely good year." - Alfred
P. Sloan, Jr., General Motors Co, November 1930


"The depression has ended." - Dr. Julius Klein, Assistant Secretary of
Commerce, June 9, 1931


"I believe July 8, 1932 was the end of the great bear market." - Dow
Theorist, Robert Rhea, July 21, 1932


"All safe deposit boxes in banks or financial institutions have been
sealed… and may only be opened in the presence of an agent of the I.R.S."
- President F.D. Roosevelt, 1933


Lets compare those quotes to some made over the past few years:

"Home sales are coming down from the mountain peak, but they will level
out at a high plateau — a plateau that is higher than previous peaks in
the housing cycle." - David Lereah, Chief Economist, National Association
of Realtors, Dec 2005


"We may see a blip up in foreclosures and delinquencies." - Leslie
Appleton-Young, Chief Economist, California Association of Realtors, Dec
15 2005


"The U.S. housing market appears to be emerging from its recent travails
and the worst may well be over",Federal Reserve Chairman Alan Greenspan,
Reuters release Oct 9, 2006

"The worst is likely to be behind us,"- Henry Paulson, US Treasury
Secretary, May 7th, 2008


"The subprime mess is grave but largely contained" - Federal Reserve
Chairman, Ben Bernanke May 17 2007, Speech before the Federal Reserve
Bank of Chicago


"This is far and away the strongest global economy I've seen in my
business lifetime."- Henry Paulson, US Treasury Secretary, July 12th, 2007


"The market impact of the U.S. subprime mortgage fallout is largely
contained and the global economy is as strong as it has been in decades."
- Henry Paulson, August 2007


"This is not a rescue" - Goldman Sachs Chief Financial Officer David
Viniar after Goldman poured $3 billion into one of its hedge funds, Aug
13, 2007


"I hope you're confident about our economy. I am." President Bush at the
Robinson Helicopter Co. in Torrance, Calif, Jan 30, 2008


"Losing a job is painful, and I know Americans are concerned about our
economy; so am I. It's clear our economy has slowed, but the good news
is, we anticipated this and took decisive action to bolster the economy,
by passing a growth package that will put money into the hands of
American workers and businesses." - President Bush on news that the
economy lost 63,000 payroll jobs in February, March 7, 2008


"These institutions [Fannie and Freddie] are fundamentally sound and
strong. There is no reason for the kind of [stock market] reaction we're
getting." - Christopher Dodd, Chair, Senate Banking Committee, Financial
Post, July 12, 2008

--
“Man will never be free until the last king is strangled with the
entrails of the last priest.” -Dennis Diderot Pay your taxes so the rich
don't have to. Atheist #2211

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