Posts Tagged ‘Great Depression’

Smoot–Hawley Tariff Act of 1930 & the Great Depression

The Smoot–Hawley Tariff Act of 1930 was an act signed into law on June 17, 1930, that raised U.S. tariffs on over 20,000 imported goods to record levels. The ensuing retaliatory tariffs by U.S. trading partners reduced American exports and imports by more than half and according to some views may have contributed to the severity of the Great Depression.

The stock market topped in 1929 and fell 45 percent in just three months.

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Geithner, Brown Split on Tobin Tax at G-20 Meeting

(Bloomberg) — Group of 20 governments split on whether to tax financial trading as part of a broader strategy to ensure the global economy’s expansion is less crisis-prone.

U.K. Prime Minister Gordon Brown told a meeting of finance chiefs in St. Andrews, Scotland yesterday that such a levy could prevent excessive risk taking and fund future bank rescues, adding momentum to a debate begun by France.

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This Day in Wall Street History 1929: The Great Crash of 1929

Oct. 29, 1929, is a day like no other in Wall Street history.

Black Tuesday, the day of the Great Crash, was a day of frenzied, panic-fueled trading, as investors struggled desperately to avoid financial ruin.

When the dust settled, 16 million shares had been sold on the New York Stock Exchange.

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Unemployment hits 26-year high

Job losses in June bigger than expected as nationwide jobless rate reaches 9.5 percent

WASHINGTON — The government report Thursday that the nation’s unemployment picture took an unexpectedly sharp turn for the worse after four straight months of moderately encouraging news was a sobering jolt to hopes that the economy might gradually be getting back on track.

The overall unemployment rate edged up just a notch, to a 26-year high of 9.5 percent in June, but the loss of 467,000 payroll jobs made it clear that the worst economic crisis since the Great Depression was far from over – at least for American workers.

And the size of the payroll loss was unexpected and reversed a four-month trend in which the size of the loss had been shrinking from the January peak of 741,000 jobs eliminated.

Since the recession began in December 2007, the ranks of the unemployed have almost doubled to 14.7 million, and nonfarm employers have eliminated 6.5 million jobs.
“This is the only recession since the Great Depression to wipe out all the jobs growth from the previous business cycle,” said EPI economist Heidi Shierholz.

The financial crisis and the dollar

In the face of the worst economic crisis since the Great Depression and unprecedented U.S. policy actions, the U.S. dollar is still up 14 percent, against a trade-weighted basket of major currencies, from its all-time lows last year. On top of that, as you can see in the chart below, the dollar remains in an uptrend …

Source: Bloomberg

Meanwhile, currencies in the BRIC region have been decimated, with the exception of China — which has manipulated its currency in a virtual flat-line against the dollar since the crisis commenced.

Today, even after some recovery, the Russian ruble remains down 35 percent, the Brazilian real is down 27 percent and the Indian rupee is down 23 percent versus the dollar.

But most importantly, from peak to trough these currencies lost 58 percent, 69 percent and 33 percent respectively against the dollar at the height of the crisis.

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U.S. consumer mood highest in 8 months: survey

The gradual healing in consumer confidence, which hit a 28-year low in November, has been seen as a sign of an economic rebound from the worst downturn since the Great Depression.

The Reuters/University of Michigan Surveys of Consumers said its final May reading on consumer sentiments was 68.7, higher than an early May figure of 67.9 and a final April reading of 65.1. This was slightly above economists’ median expectation of a reading of 68.0, according to a Reuters poll.

more at

http://www.reuters.com/article/newsOne/idUSTRE54S3F620090529

This Day in Wall Street History 1931: Empire State Building dedicated

On this day in 1931, President Herbert Hoover officially dedicated New York City’s Empire State Building, pressing a button from the White House that turned on the building’s lights. Hoover’s gesture, of course, was symbolic; while the president remained in Washington, D.C., someone else flicked the switches in New York.

The idea for the Empire State Building is said to have been born of a competition between Walter Chrysler of Chrysler Corp.

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Details from Stanford company websites about his financial empire

Quote from Allen Stanford in magazine

“Our world is far different than the world my grandfather lived in when the first Stanford company was founded … As a company founded in the midst of the Great Depression — an environment of despair and negativity — we have a long-proven understanding of how even the most severe downcycles can bring opportunities that yield significant benefits in the long run.”

Following are details from Stanford company websites about his financial empire, including from a 2008 copy of the group’s Stanford Eagle Magazine.

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