Is This The Greater Depression?

by Larry Levin

When you read the quotes below you will notice something eerily similar to today: bankers, so-called experts, and politicians are either liars or incompetent. One thing's for sure, time hasn't changed how today's group of meddlers are repeating history, both in policy and outrageous statements. Tomorrow I will post the current crop of quotes and you will see for yourself the similarities. Will our children look back and call this period The Greater Depression? I hope not.

The Great Depression 1929-1932 Headlines:

September 1929
"There is no cause to worry. The high tide of prosperity will continue."
- Andrew W. Mellon, Secretary of the Treasury.

October 14, 1929
"Secretary Lamont and officials of the Commerce Department today denied rumors that a severe depression in business and industrial activity was impending, which had been based on a mistaken interpretation of a review of industrial and credit conditions issued earlier in the day by the Federal Reserve Board."
- New York Times

October 29 1929...The US stock market crashes

December 5, 1929
"The Government's business is in sound condition."
- Andrew W. Mellon, Secretary of the Treasury

December 28, 1929
"Maintenance of a general high level of business in the United States during December was reviewed today by Robert P. Lamont, Secretary of Commerce, as an indication that American industry had reached a point where a break in New York stock prices does not necessarily mean a national depression."
- Associated Press dispatch.

January 13, 1930
"Reports to the Department of Commerce indicate that business is in a satisfactory condition, Secretary Lamont said today."
- News item.

January 21, 1930
"Definite signs that business and industry have turned the corner from the temporary period of emergency that followed deflation of the speculative market were seen today by President Hoover. The President said the reports to the Cabinet showed the tide of employment had changed in the right direction."
- News dispatch from Washington.

January 24, 1930
"Trade recovery now complete President told. Business survey conference reports industry has progressed by own power. No Stimulants Needed! Progress in all lines by the early spring forecast."
- New York Herald Tribune.

March 8, 1930
"President Hoover predicted today that the worst effect of the crash upon unemployment will have been passed during the next sixty days."
- Washington dispatch.

May 1, 1930
"While the crash only took place six months ago, I am convinced we have now passed the worst and with continued unity of effort we shall rapidly recover. There is one certainty of the future of a people of the resources, intelligence and character of the people of the United States - that is, prosperity."
- President Hoover

June 29, 1930
"The worst is over without a doubt."
- James J. Davis, Secretary of Labor.

August 29, 1930
"American labor may now look to the future with confidence."
- James J. Davis, Secretary of Labor.

September 12, 1930
"We have hit bottom and are on the upswing."
- James J. Davis, Secretary of Labor.

October 16, 1930
"Looking to the future I see in the further acceleration of science continuous jobs for our workers. Science will cure unemployment."
- Charles M. Schwab.

October 20, 1930
"President Hoover today designated Robert W. Lamont, Secretary of Commerce, as chairman of the President's special committee on unemployment."
- Washington dispatch.

October 21, 1930
"President Hoover has summoned Colonel Arthur Woods to help place 2,500,000 persons back to work this winter."
- Washington dispatch.

November 1930

"I see no reason why 1931 should not be an extremely good year."
- Alfred P. Sloan, Jr., General Motors Co.

January 20, 1931
"The country is not in good condition."
- Calvin Coolidge.

June 9, 1931
"The depression has ended."
- Dr. Julius Klein, Assistant Secretary of Commerce.

August 12, 1931
"Henry Ford has shut down his Detroit automobile factories almost completely. At least 75,000 men have been thrown out of work."
- The Nation.

July 21, 1932
"I believe July 8, 1932 was the end of the great bear market."
- Dow Theorist, Robert Rhea.

When you read tomorrow's email you might think you're reading the same quotes, but that someone has changed the dates and names. Alas, they are from today's crisis. Those that refuse to learn from the past are doomed to repeat it.

Previous Day's Trading Room Results:

Trade Date: 12/15/08

E-Mini S&P Trades*
(before fees and commissions):

1) TP buy @ 9:20am at 869.00 = +3.00 (1 lot)

2) OTF buy @ 11:40am at 867.50 = b/e (1 lot)

3) OTF sell @ 12:30pm at 867.75 = b/e (1 lot)

4) VA buy @ 2:15pm at 859.50 = -.25 (1 lot)

5) Algorithm positions (14)...combined daily total...+21.75

ZB (30 Year Bond) Trades*
(before fees and commissions):


1) No trades today.



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