Major Stock Market Crash Ahead?... Comparing 1929 to 2008

Comparing 1929
to 2008
...
about webpennys.com...
contact us...
home-index...
investor resource web sites...
legal...
message board/chat web sites...
newsletters...
news web sites...
profiles on stocks...
stock pick web sites...
suggest a link...
suggest a stock...
trading clubs...
trading companies...

 

Canadian Maple Leaf Coins

About Canadian Gold

Maple Leaf Coins

 

About Canadian Silver

Maple Leaf Coins

 

Top of Page
 

 

WEBPENNYS.COM -
Copyright  
All Rights Reserved.

 

Google

Major Stock Market Crash Ahead?...
Comparing 1929 to 2008
...


 
SEPT. 21 2008 - Reviewing the history of the great stock market crash of 1929, its not hard to see the uncanny similarity between present time and the lead up to the great stock market crash of 1929........

Following the great stock market crash of 1929, the US Govt. created the Pecora Commission in 1932 to study what had caused the great crash; to learn about and then adjust financial policy to prevent a similar stock market crash in the future.

One of the main factors the Pecora Commission cited as a possible cause for the 1929 crash was the wide range of abusive practices on the part of banks and bank affiliates... these abusive practices included a variety of conflicts of interest such as the underwriting of unsound securities in order to pay off bad bank loans as well as "pool operations" to support the price of bank stocks... following the the Pecora Commission, the Glass-Steagall Act of 1933 was established to protect the public against the abuses made by the banking industry, unfortunately; 70 years later, Wall Street interests were able to repeal the Glass-Steagall Act in 1999.

With the Glass-Steagall Act repealed in 1999, Wall Street was able to start its slow-motion repeat of the banking circumstances preceeding the 1929 crash, for example; the current US Secretary of Treasury is none other than an ex-CEO of the Wall Street giant investment bank; Goldman Sachs... Goldman Sachs has been heavily involved in the securitization business on Wall Street over the past decade... securitization is a buzzword for the packaging of debt which is then sold to investors, products like; sub-prime mortgages, CDO's, ABCP's, etc, etc, which have now been found to be riddled with fraud... and which are now at the base of Wall Streets problems.

To me, it looks like Wall Street has essentially already committed the same malfeasance that ultimately lead to the great stock market crash of 1929... so, in my opinion, any major bailout that Hank Paulson is able to swindle out of the US taxpayer will only delay the painful re-adjustments coming to US stock markets.

 

LINKS:

 

The 1929 Stock Market Crash

 



TOP OF PAGE