“…While the crash only took place six months ago, I am convinced we have now passed the through the worst–and with continued unity of effort we shall rapidly recover. There has been no significant bank or industrial failure. That danger, too, is safely behind us. (1)
While it’s probably too easy to write off the current business climate as just results for instense speculation by the money makers of Wall St., it’s not too far of a jump to see some scary parallels between today and the beginning of the slide that fall of 1929: Wars, financial troubles, speculation, elections.
It’s all repeating isn’t it? Are there similarities between the spectacular implosion of Lehman Brothers followed up by the scrambling sale of Merrill Lynch to the BoA and the failures of many banks during the Depression?
Would it be helpful, perhaps, to revisit 1929-1932 and see exactly what the climate and news and feelings were back then?
With this post, I’m going to kick off a three part series examining some of these events from the era and see if any of that history can be applied to today’s environment. From what I have researched, there is some knowledge that we can still learn from that era.
I will leave you today with the following letter from a “political insider” from the Hoover administration during the Presidential election of 1932. It’s pretty neat…..
Just a real quick administrative note, but I am also working on the weekly podcast from last week and should have that up later today. I’ve also got some good book reviews that I will be talking about on that.