Root Cause of Great Depression Was Antitrust (Private Equity Firms and Hedge Funds)
December 28, 2007 – 8:32 pm
Yeah. I said it.
Private Equity Firms. Mutual Funds. Hedge Funds. Federal Reserve. You can call them whatever you want. They are all banking cartels.
I just read this post on Austrian Economists.
http://austrianeconomists.typepad.com/weblog/2007/12/did-the-gold-st.html
Mismanagement Gold Standard Helped Cause the Great Depression?
Yes, But the Root Cause Was Antitrust.
History also remembers that the Great Depression was an antitrust problem that started by real estate crisis in Florida and set off a chain reaction nationwide. Lack of antitrust legislation and the era of the robber barons produced a class of Americans that possessed 90% of the countries wealth.
Upon accumulation of all this wealth, the robber barons exercised conventional wisdom abject stupidity in the management of commodities such as gold, silver, oil …. well, just pick any commodity, and chances are they mismanaged it. ^_^ The few families who got out of the market early survived. You may have heard of some of them: Rockefeller, Vanderbilt.
What is all this antitrust nonsense I am talking about?
It may be hard to remember, but in the U.S. there were actually laws (antitrust laws) that clearly stated that your bank could not do your taxes, your tax preparer could not provide your insurance, and your insurance company could not manage your mutual funds.
Most of those laws were repealed and now you are seeing the results.
Sadly, per Brooding Issue #1 in my previous post, I see massive bank failures ahead.
It appears that the giant private equity firms (who bought real estate at the top of the market) will fall and come crashing down crushing all the little people underneath. (Just like in Florida in 1929).
Currency Collapse May Be Eminent
If we are lucky, we will experience an orderly currency collapse. However, two smart guys named Bill Gates and Warren Buffet fear a disorderly fall of U.S. dollar, which will turn the Great Depression into a discussion about happier times.
… つづく
3 Responses to “Root Cause of Great Depression Was Antitrust (Private Equity Firms and Hedge Funds)”
Note: I understand that the current chain of events that actually triggered this current economic situation is someone refusing to continue buying U.S. debt.
However, that is not a root cause, I believe.
By admin on Dec 29, 2007
You should pick up Eichengreen’s “Golden Fetters”. It links the Great Depression to the shrinking monetary base transmitted through the Gold Standard in a compelling way.
The book is at least ten years old at this point, but is exceptional and statistically solid. There is a great graph about halfway through the book, demonstrating the recovery points for various countries following their departure from the gold standard. Excellent economic historiography, and the (relatively) new gold standard for research into the Great Depression.
Austrian economics are part of the problem, not the solution.
By trevelyan on Mar 19, 2008
and still part of the problem, austrian economics is….
By admin on Sep 15, 2008