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roamer65

(37,813 posts)

9. Even in early to mid 1929, the economy was weakening.

Reply to maxrandb (Reply #6)

Sun Sep 14, 2025, 07:23 PM

Sep 14

Economic reality hit Wall Street in October and early November. By late 1930, it was obvious after the Smoot-Hawley Tariff Act and rising bank failures, it wasn’t going to be a “garden variety” recession. The Federal Reserve was also too late to the game in its continuance of restrictive monetary policy.

Once deflation kicked in, real interest rates were high. Real interest rates are calculated by the bank lending rate plus or minus the deflation or inflation rate.

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Why stocks keep going up even as the economy softens [View all] Yo_Mama_Been_Loggin Sep 14 OP

IOW, the Stock Market is delusional based on the whims of no_hypocrisy Sep 14 #1

Same happened in 1929. roamer65 Sep 14 #2

Yep, here's more detail maxrandb Sep 14 #6

Even in early to mid 1929, the economy was weakening. roamer65 Sep 14 #9

Wall Street vs Main Street KentuckyWoman Sep 14 #3

And companies channeling profits into stock buybacks markodochartaigh Sep 14 #4

As prices rise and unemployment increases, folks will buy less/differently. Business bottom lines will suffer. It.... dutch777 Sep 14 #5

When the bubble burst the rich will pick up stocks for peanuts. When we hear the doc03 Sep 14 #7

the stock market is not about the economy. the stock market is about profits for big public companies. unblock Sep 14 #8

Krugman Strelnikov_ Sep 14 #10

Latest Discussions»General Discussion»Why stocks keep going up ...»Reply #9