By Roger Bootle
Recent signs of global economic weakness have caused me to muse on the comparison between the world economy now and during the 1930s. The similarities are spooky…
Contrary to the folk memory of a disastrous decade, in the 1930s the UK did relatively well… In the popular imagination, the slump of the 1930s was set off by the sharp falls in share prices in the Wall Street Crash of 1929. In fact, the direct effect of the Crash was probably not that great.
More important was the international banking crisis which followed the collapse of the Austrian bank, Creditanstalt, in 1931.
Advantage Bulls, But It’s Over If This One Thing Happens This Week
Swing Trades This Week – Once Upon a Time Old Traders Told Me, Never Short A Dull Market
This time we have not had major weakness in share prices, but we have had a major asset price collapse, namely in real estate prices – in America, Spain and Ireland. As a direct result, we have certainly had a major banking crisis.
via Spooky parallels between Great Depression and euro crisis – Telegraph.
Join the conversation and have a little fun at Capitalstool.com. If you are a new visitor to the Stool, please register and join in! To post your observations and charts, and snide, but good-natured, comments, click here to register. Be sure to respond to the confirmation email which is sent instantly. If not in your inbox, check your spam filter.
You must log in to post a comment.