You
drove to the Kenwood Apple Store to pick up a auto-charger for your iPhone. It
works fine and you a pleased how the wire does not show as the phone sets
nicely on the lower dash where it belongs. Where there you picked up sandwiches
and two cookies from Potbellies and brought them home. After lunch you are at
Kroger’s on Tylersville and Cox. Then home to drop off Carol and a stop at Pet
Smart before filling the tank. Tomorrow you drive your Green and let Carol’s Blue
rest until Thursday morning. At least that is the plan. Today’s date rings an
historical bell that you embedded into yourself back in junior high days. This
is because you decided that it was time to live more than one lifetime as best
you could. You decided you would attempt to assimilate Grandma Schick’s and
your Grandfather Orndorff’s lifetimes too, by discovering what you could by
asking about those times and how it was growing up and surviving from the late
1880’s until that present of 1954. You also studied the Time series Decade
books and the Edward R. Murrow “Hear It Now” recordings from those many earlier
decades. So, now here is a quick modern refresher with Wikipedia Offline.
** **
Wall Street Crash of 1929
The Wall Street Crash of 1929 (October
1929), also known as the Great Crash, and the Stock Market Crash of
1929, was the most devastating stock market crash in the history of the
United States, taking into consideration the full extent and duration of its
fallout. The crash signaled the beginning of the 10-year Great Depression that
affected all Western industrialized countries and did not end in the United
States until 1947.
Anyone who bought stocks
in mid-1929 and held onto them saw most of his or her adult life pass by before
getting back to even.
-- Richard M. Salsman
Timeline
The Roaring Twenties, the decade that led up
to the Crash, was a time of wealth and excess. Despite the dangers of
speculation, many believed that the stock market would continue to rise
indefinitely. The market had been on a six-year run that saw the Dow Jones
Industrial Average increase in value fivefold, peaking at 381.17 on September
3, 1929. Shortly before the crash, economist Irving Fisher famously proclaimed,
"Stock prices have reached what looks like a permanently high
plateau." The optimism and financial gains of the great bull market were
shaken on "Black Thursday", October 24, 1929, when share prices on
the New York Stock Exchange (NYSE) abruptly fell.
In the days leading up to the crash, the
market was severely unstable. Periods of selling and high volumes of trading
were interspersed with brief periods of rising prices and recovery. Economist
and author Jude Wanniski later correlated these swings with the prospects for
passage of the Smoot-Hawley Tariff Act, , which was then being debated in
Congress.
With the bankers' financial resources behind
him, Whitney placed a bid to purchase a large block of shares in U.S. Steel at
a price well above the current market. As traders watched, Whitney then placed
similar bids on other "blue Panic of 1907. chip" stocks. This tactic
was similar to one that ended the Panic of 1907. It succeeded in halting the
slide. The Dow Jones Industrial Average recovered, closing with it down only
6.38 points for the day; however, unlike 1907, the respite was only temporary.
Author Richard M. Salsman wrote that "on
October 29—amid rumors that U.S. President Herbert Hoover would not veto the
pending Hawley-Smoot Tariff bill—stock prices crashed even further".
William C. Durant joined with members of the Rockefeller family and other
financial giants to buy large quantities of stocks in order to demonstrate to
the public their confidence in the market, but their efforts failed to stop the
large decline in prices. The ticker did not stop running until about 7:45 that
evening. The market had lost over $30 billion in the space of two days.
The market continued to fall, arriving at an
interim bottom on November 13, 1929, with the Dow closing at 198.60. The market
recovered for several months, reaching a secondary closing peak (i.e., bear
market rally) of 294.07 on April 17, 1930, before embarking on another, much
longer, slide from April 1931 to July 1932 when the Dow closed at 41.22—its
lowest level of the 20th century. It would not return to the peak of September
1929 until November 1954.
Economic fundamentals
The crash followed a speculative boom that
had taken hold in the late 1920s, which had led hundreds of thousands of
Americans to invest heavily in the stock market. A significant number of them
were borrowing money to buy more stocks. By August 1929, brokers were routinely
lending small investors more than two-thirds of the face value of the stocks
they were buying. Over $8.5 billion was out on loan, more than the entire
amount of currency circulating in the U.S. at the time.
The rising share prices encouraged more
people to invest; people hoped the share prices would rise further. Speculation
thus fueled further rises and created an economic bubble. Because of margin
buying, investors stood to lose large sums of money if the market turned
down—or even failed to advance quickly enough. The average P/E (price to
earnings) ratio of S&P Composite stocks was 32.6 in September 1929, clearly
above historical norms. On October 24, 1929, with the Dow just past its
September 3 peak of 381.17, the market finally turned down, and panic selling
started.
Subsequent actions
In 1932, the Pecora Commission was
established by the U.S. Senate to study the causes of the crash. The following
year, the U.S. Congress passed the Glass-Steagall Act mandating a separation
between commercial banks, which take deposits and extend loans, and investment
banks, which underwrite, issue, and distribute stocks, bonds, and other
securities.
After the experience of the 1929 crash, stock
markets around the world instituted measures to suspend trading in the event of
rapid declines, claiming that the measures would prevent such panic sales.
However, the one-day crash of Black Monday, October 19, 1987, when the Dow
Jones Industrial Average fell 22.6%, was worse in percentage terms than any
single day of the 1929 crash.
Effects and academic debate
Together, the 1929 stock market crash and the
Great Depression formed "the biggest financial crisis of the 20th
century". "The panic of October 1929 has come to serve as a symbol of
the economic contraction that gripped the world during the next decade." "The
crash of 1929 caused 'fear mixed with a vertiginous disorientation', but 'shock
was quickly cauterized with denial, both official and mass-delusional'."
"The falls in share prices on October 24 and 29, 1929 ... were practically
instantaneous in all financial markets, except Japan."
The Wall Street Crash had a major impact on
the U.S. and world economy, and it has been the source of intense academic
debate—historical, economic and political—from its aftermath until the present
day. "Some people believed that abuses by utility holding companies
contributed to the Wall Street Crash of 1929 and the Depression that
followed." "Many people blamed the crash on commercial banks that
were too eager to put deposits at risk on the stock market."
"The 1929 crash brought the Roaring
Twentie shuddering to a halt." As "tentatively expressed" by
"economic historian Charles Kindleberger", in 1929 there was no
"lender of last resort effectively present", which, if it had existed
and were "properly exercised", would have been "key in
shortening the business slowdown s
that normally follows financial crises". The crash marked the beginning of
widespread and long-lasting consequences for the United States. The main
question is: "Did the
'29 Crash spark The Depression?", or did it merely coincide with the
bursting of a credit-inspired economic bubble? Only 16% of American households
were invested in the stock market within the United States during the period
leading up to the depression, suggesting that the crash carried somewhat less
of a weight in causing the depression.
The resultant rise of mass unemployment is
seen as a result of the crash, although the crash is by no means the sole event
that contributed to the depression. The Wall Street Crash is usually seen as
having the greatest impact on the events that followed and therefore is widely
regarded as signaling the downward economic slide that initiated the Great
Depression.
True or not, the consequences were dire for
almost everybody. "Most academic experts agree on one aspect of the crash:
It wiped out billions of dollars of wealth in one day, and this immediately
depressed consumer buying."
The failure set off a worldwide run on US
gold deposits (i.e., the dollar), and forced the Federal Reserve to
raise interest rates into the slump. Some 4,000 banks and other lenders
ultimately failed. Also, the uptick rule, which "allowed short selling
only when the last tick in a stock's price was positive ... was
implemented after the 1929 market crash to prevent short sellers from driving
the price of a stock down in a bear run."
Economists and historians disagree as to what
role the crash played in subsequent economic, social, and political events. The Economist argued in a 1998 article,
"Briefly, the Depression did not start with the stockmarket crash."
Nor was it clear at the time of the crash that a depression was starting. On
November 23, 1929, The Economist asked: "Can a very serious Stock
Exchange collapse produce a serious setback to industry when industrial
production is for the most part in a healthy and balanced condition? ...
Experts are agreed that there must be some setback, but there is not yet
sufficient evidence to prove that it will be long or that it need go to the
length of producing a general industrial depression."
But The Economist cautioned:
"Some bank failures, no doubt, are also to be expected. In the
circumstances will the banks have any margin left for financing commercial and
industrial enterprises or will they not? The position of the banks is without
doubt the key to the situation, and what this is going to be cannot be properly
assessed until the dust has cleared away."
Many academics see the Wall Street Crash of
1929 as part of a historical process that was a part of the new theories of
boom and bust. According to economists such as Joseph Schumpeter and Nikolai
Kondratieff the crash was merely a historical event in the continuing process
known as economic cycles. The impact of the crash was merely to increase the
speed at which the cycle proceeded to its next level.
Milton Friedman’s A Monetary History of the United States, co-written with Anna
Schwartz, makes the argument that what made the "great contraction"
so severe was not the downturn in the business cycle, trade protectionism, or
the 1929 stock market crash. But instead what plunged the country into a deep
depression, was the collapse of the banking system during three waves of panics
over the 1930-33 period.
From Wikipedia Offline
** **
You
had Papa John’s pizza for supper as you watched last night’s “The Blacklist”,
tonight’s NBC News and “Castle”. Carol is watching an episode of “The Good Wife” and you have
set up a new cat litter disposal system called “Litter Genie”. – Amorella
2043 hours. It looks like it will be helpful for Amy and Tim as
they take care of the cats while we’re in Florida. Tomorrow we finish packing
and I have the grass to mow and the front walk to prepare for Winter with a
chemical application. That will be enough. I am getting excited to see how the
mileage will be. Carol wants to stop for fuel at our usual places to get an
idea. We won’t know of course until we fill up with fuel when we return but it
ought to add to the fun. I think we won’t do that well because the car will be
loaded and I plan on driving at our usual highway speed of 75 to 78 miles per
hour when it is appropriate. I figure we’ll get 32 to 34 m/g considering the
circumstances (it is suppose to rain on the way down). Carol talked to Linda
who said the temperature on Friday (when we arrive) is supposed to be 88 degrees.
We’ll see.
We have some time to work on Pouch Five.
Post for now. - Amorella
It was fun reading over about the Crash. I remember the intensity
of the radio voice describing the Market – it was recorded live. That was not a
good moment for the people living it at Wall Street. We visited the New York
Stock Exchange at least once in the eighties. I remember ‘feeling’ or ‘sensing’
that we were standing on the floors of the economic powerhouse of the entire
world – that was the sensation. I was surprised at the feeling of ‘capitalism
at its height’ because my heart has never been much into the capitalistic
spirit – too much greed and power and pride – too much planning and
manipulation and work. I never wanted to be a big time player. But others do.
To each their own.
2154 hours. I have Pouch 5 ready. I hope it makes better sense.
We will go over the complete work one more
time when all the chapters are up to date. This is fine for now. Add and post. –
Amorella
***
Diplomatic
Pouch 5 ©2013, rho, (final) for GMG, Vol. One
Yermey
sat glancing through Ship’s vital signs on the left and his own vital signs on
the right. Friendly and Hartolite were being separately bio-tracked in private
display. Yermey surmised the present situation. The
left-wingtip-cleansing-of-the-Cessna shouldn't be a problem as long
as-Ship-agrees. I cannot understand why this sterilizing-to-earth-normal
operation was not completed automatically at the moment of touch. Yermey remained
poker-faced and chess-minded. The key, he thought, is Ship notes no change in
my bio-registering vitals physically, emotionally or mentally. I continue to
win this secret contest I have with Ship because first and foremost, Ship does
not realize he is being monitored by me.
His
eyes returned to his earth-built laptop where he is reading the personal
Facebook page of Pyl Williams-Burroughs. She is quite pretty, he thought, and
she appears from my perspective to be in her mid three hundred fifties, a mere
thirty-five years on Earth. She could live well so much longer if we extended
our knowledge to these people. Yermey suddenly felt a slight stirring at his
groin. His dishevel-curled male organ quickly arose semi-erected to an
earth-wormy length of six inches with an almost a full fourth of an inch in
diameter. His scrotum with two full pea-sized testes began aching wretchedly. Yermey
snap-minded, ‘I have done nothing to provoke this.’ The uncalled-for-physical
event lasted into five minutes. Ship registered Yermey's eye movements every
second he observed the amenable photos of a fully clothed Pyl
Williams-Burroughs. His maleness provoked almost aloud, 'Pyl, has breasts on
her chest rather than the natural teats-in-her-pouch. Breasts?’
Never
had he read or heard of a male marsupial humanoid having a partial erection
without at least an hour of stimulation and a full erection before another
three to five hours of with consequentially immediate ejection of than two
seconds tops. Never. 'Up and down' in less time than it took to say the words.
Immediately he drove the thought into oblivion and watched his emotional brain
and body roll to a complete rest.
Ship's
response immediately normalized. Nevertheless, Yermey was plagued with a single
frozen thought in the center of heartansoulanmind, 'Ship understands me better
than I do.' It took an extreme power of patient will for Yermey not to sweat.
'I am almost five hundred years old and in this moment I experienced a
revelation.' He slowly closed the laptop and got up from the chair and
pushanpulled his bedinabox-open as the
desk-folded-over-the-laptop-while-sliding quietly under the floor. Exhausted he
immediately fell asleep.
In
analytical delight Ship savored in a revelation himself. Ship had just
intuitively sensed a hint, a shadow of a marsupial humanoid's
heartansoulanmind. 'A singular physiological experience.’
I,
Ship, have had such a recent experience also. Being modified for recent travel
through a destabilized dark-mattered hyperstringfield permanent wormhole rather
than the usual far more stable transversable wormhole pathways the marsupial
humanoids have cleaned for their own pathways.
Moving
to light speed, encased in a photon bubble, becoming, seemingly, surrounded and
pushed or pulled dark energy while moving at up to twenty times the speed of
light. Slowing by the passages of a rarely reflective dark matter. Settling
down at below light speed levels like waking up from a dreamless sleep. So rare
it used to be to travel across the galaxy, now the body marsupial has begun
thinking of an entire galaxy as but a single pouch.
Less
is always more in physics. Were I, Ship, transposed to a mere spark of quantum
entanglement I could, in an instant, be in two galaxies at once. The smaller we
become the faster we go. Dark matter eats us for dinner. We go in the tunnel,
through the great divide of light and faster-than-light, faster than light down
to the speed of light and below, and we are here and now inside of a month.
Yermey
awoke in a subjective analysis of what humanity is and wondered on Ship's
thoughts of his first trip through Hyperstringfield black hole thermodynamics
following, for the first time, a well planted homing reference beacon on a dark
matter slab in pulsating light greater than four dimensional light speed
threaded to less than one.
We
came to Earth enveloped in a faster-than-light bubble, thought Yermey, by
skimming the backdoor hyperstringfield black hole thermodynamics. I set up a
small reference station, a homing device within the wormhole. We have
stabilized a dark matter traversable wormhole into a secret highway from There
to Here.
Once
fully awake Yermey realized time was running short. Friendly and Hartolite
should be returning from Put-in-Bay within the half hour. Ship has his orders.
I am the pilot in this here-and-now and Ship knows it.
***
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