Boom Times Are Again With Us

I meant to publish this post a couple of weeks ago — which seems to have been, with hindsight, the top of the markets — but due to lack of time, I couldn't.

"Now that the President has saved the banks and is trying to balance the budget, I suppose that everything will be all right again. I wanted to get that new Spring coat I told you about and, since prices are apt to go up again, I'd better grab it."


Thus spoke the wives of many hundreds American business men during the second week of March 1933. One very famous "columnist" published a leading "columnist" published a leading article that boom times were again with us.

Robert L. Smitley, Popular Financial Delusions, 1933

1933 was the peak of the mega reflationary period after the crash of 1929. The market rallied more than 100% before collapsing 80%.

We are relieving the Great Depression, walking the same path, step by step, except in a much, much greater scale. We are living in the Greater Depression, and I will be writing a series of post taken from history books, to given concrete proof that those who cannot remember the past are condemned to repeat it. 


Previous posts in this series:

• 2011-04-26 How To Prevent Economic Upheavals
• 2011-04-15 Resisting a Depression is a Dangerous Delusion