No matter what side of government intervention you're on, it's agreed that it has an affect on the market. Whether that effect is a shorter bear market or simply a prolonged slide is debatable. Today's guest blogger is Tony of KhronoStock.com. Tony is going to share what he thinks the similarities between the great depression and the current state of the economy means for the markets. Be sure to comment and let us know what you think.
There are four most important factors that caused the Great Depression during the early part of the 20th century.
1. Stock market crash that went from October of 1929 to summer of 1932. Stocks dropped over 80% during this period.
2. Massive bank failures – regional and community banks failed by the thousands. The remaining banks were reluctant to write any new loans due to the collapsing financial system. Continue reading "Stock Inefficiency is best found During Times of Hardship"