In 1928, banks lent people money to buy stocks, totalling in huge volumes, leading to skyrocketing stock prices and a very rosy economic picture. In 1929, the stock bubble could not hold and began to deflate. To save the day, millionaires bought up huge amounts of stocks to boost their worth, and it worked, until they sold them for huge profits, and the market crashed. Lots of people jumped off buildings on that Black Tuesday.
In 2013, the market is again flying high, but inconsistent with the rest of the economic picture - poverty deepening (more and more people on food stamps and medicaid), unemployment rising (contrary to what the government and mainstream media say - their "unemployment easing" numbers are manipulated, by dismissing some 300,000 people as being unemployable). The stock market is boosted by the Federal Reserve (U.S. central bank) injecting huge quantities of baselessly printed paper money into it, artificially boosting stock prices.
But there is one huge difference. The money injected into the stock market in 1929 was real money, based on gold, so there is a limit to it. Now in 2013, the money injected into the stock market is paper money, of which the Federal Reserve prints $85 billion every month, or about $1 trillion every year. This, in one sense, can inflate the stock market bubble indefinitely. But in another sense, there is a limit as to how big the bubble can get before it bursts, and the bigger the bubble, the worse the inevitable market crash will get.
Anthony Marr, Founder and President
Heal Our Planet Earth (HOPE)
Global Anti-Hunting Coalition (GAHC)
Anthony-Marr@HOPE-CARE.org
www.HOPE-CARE.org
www.facebook.com/Anthony.Marr.001
www.facebook.com/Global_Anti-Hunting_Coalition
www.facebook.com/Anthony.MarrII
www.youtube.com/AnthonyMarr
www.HomoSapiensSaveYourEarth.blogspot.com
www.DearHomoSapiens.blogspot.com
www.AnthonyMarr13.wordpress.com
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