Monthly Archives: October 2008

The Great Depression and today: Similar cycles, different dollars

The conventional narrative describing the Great Depression goes something like this. The US Stock Market crashed in October 1929. De-leveraging from the colossal debt bubble of the late 1920s, combined with falling agricultural prices, led to a bank panic. The … Continue reading

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First taste of the New Generation of financial crisis

Today’s crisis is the West’s first taste of a new generation of financial crisis, already known to the developing world from its 1997-98 crises. De-leveraging is the liquidation of exuberance. When fundamentals have long since belied the optimistic notions underlying … Continue reading

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Asset deflation and “debt deflation”

“[I]n the great booms and depressions, each of the [most popular explanations] has played a subordinate role as compared with two dominant factors, namely over-indebtedness to start with and deflation following soon after…. In short, the big bad actors are … Continue reading

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