Where are we now? 1929 or 1932?

Ponzi

In October 1931, Hoover asked private bankers to create a $500 Million credit pool (the National Credit Association) to assist weaker institutions. After only a few weeks of activity, the banker's NCA died. -- Paulson's short-lived super SIV in 2008

In November 1931, Hoover proposed that mortgage paper could be presented for discounting at the Federal Reserve. In February 1932, the Glass-Steagall Act markedly broadened the definition of acceptable collateral for Federal Reserve loans. -- Ben is really a good student of the Great Depression.

in January 1932, the Reconstruction Finance Corporation (RFC, the ancestor of the mother of all bailout) was created to make taxpayers' dollars directly available to private financial institutions. Congress capitalized the RFC at $500 Million and authorized it to borrow up to $1.5 billion. -- Well, looks like the major difference here is between 500 Million in 1932 and 350 Billion in 2008.

So far, 2008 looks like the 1930-1932 period in a fast-forward motion.  In 2009, O8's plan  looks like a copy of Roosevelt's New Deal that did not help much until nations around the world started to prepare for WWII. So where are we now? the end of 1929? or 1932? Next year, will the stock market have a big sucker rally or  drop like a rock?

The big unknown is from the FED's capability of printing money at will. Will that help in resolving the crisis or worsening it?

dividend_growth

I always thought that 2008 was the equivalent of 1931.

weigoodone01

marlin

1931

gear

Interesting.