The title sounded interesting so click … look at the date for this post!
big players during the Great Depression that stepped in such as National City offering $25 million to brokers in March preventing a decline at the time. So the market had 7 more months of breathing room. The underlying fact still existed at the time as it does in 2007 that the underlying assets such as U.S. Steel, RCA, Westinghouse, and other companies were incredibly overpriced for what they were selling for. Fundamentals were living in Wonderland. Instead of stocks being over valued we now face massively overpriced houses in 2007.
And so it continues. However, Instead of stocks being over valued, it should read In addition to… In 1929 it was RCA and Westinghouse. Until this week, it was GE. Coincidence?
Interesting that some of the “big players” stepped in to help out in March 1929 which may have delayed the inevitable for 7 months. The past is no predictor of future events but it is eerie none the less.
How bad is it? Remember, this was written almost a year ago!
I know we are in a bubble like no other when I get credit offers and refinancing offers from companies that no longer are in operation! Maybe they should contact their direct mailers and let them know that they are no longer offering 0 percent for 12 months or 5 percent Home Equity lines.
The credit solicitations have dwindled. Some measure of reality is kicking in.