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01 April 2013

Comments

Paul Emery

George

Your essay is well written and instructive but you fail to note that the stock market crash of Oct 1929 was indeed only nine months after President Coolidge left office. In fact the Stock Market "bubble" (sound familiar) was bloated during his tenure.

In your view if he would have continued as President would the market still have crashed?

George Rebane

PaulE 937pm - Good question. Hard to retrodict different world lines, but I would say that the likelihood was high that a correction/crash would have occurred. But the crash definitely would not have been as deep - recall the market kept dropping after Oct 1929 - if he had stayed in office. It was Hoover's rejection of Coolidge's policies that caused him to have the Fed jump in as he went on to reject von Mises advice of 'Do nothing, sooner!'

Had Hoover been true to his campaign promises to continue Coolidge's policies, the Depression would have been a recession, and we definitely would have been spared the New Deal.

bill tozer

Good April Fools Day joke, Dr. Rebane. Guess your moment of levity only lasted a few hours.

Hoover was not all bad. There is a bit of bad in the best of us and a bit of good in the worse of us. Hoover had the Great Depression, WWI vets marching on the Capital demanding their pensions in advance, The Dust Bowl kicking up, and a wave of Socialism rearing its head.

Hoover was reluctant to succumb to the growing chorus of the Federal Government passing out food stamps. He felt it was a slippery slope and not the role of the Feds. Instead he supplied the Red Cross to pass out seed packets, a kind of charity based organization in partnership with government if you will.

Boy, was Hoover ever a visionary. What a slippery slope.

Paul Emery

How could Coolidge have not been aware of the dangers of the market crashing if he was such a hot financial guy? I mean the fact that so many people were hocking their farms and homes buying inflated stocks with 10% down that when the market went down say 15% and the margins were called by the banks and brokers people lost everything. So the market was not allowed to modestly correct without causing total chaos. Much like the housing crash of 08. Both were a time bomb waiting to go off while those we hire to sail the ship were either asleep at the wheel or aware of what was eventually going to happle but unable or unwilling to serve the best interests of the people who elected them by at least making them aware of the danger.

I mean the stock marked increased 10 fold from 1920-1929 !!!

Paul Emery

correction

The stock market increased 4 fold in the 20's.

Ben Emery

Paul,
Good audio of Thomas Streicher memorial. Now there is a the epitome of successful human being. It seems we lose sight of how much good people do until they are gone.

Michael Anderson

Very, very nice. Wish I'd heard it all on that foolish day, but I was out of town. Thanks to George and Molly for showing that a sense of humor is still possible among agreeable contrarians of different stripes.

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