The Not Stock Market Crash of 1914 or How I Learned to Love the Free Market
You think Europe is in bad shape now? Ha! After the 1914 assassination of that Australian dude (I kid), stock markets in heavily regulated Europe tumbled. Like dominos, they fell one after another. Panic selling in Vienna and Paris spread to London, the most important clearing house for international exchanges. The entire global economic system was collapsing.
The NYSE, with zero government regulation, and zero bureaucracies like the S.E.C. watching its back, and with a newly created Federal Reserve that hadn't even become aware of its own monstrous power, didn't collapse.
Markets are too important to be left to government intervention.
The account of the 1914 not-crash comes from economist Benjamin Anderson, and the book is a masterpiece called Economics and the Public Welfare. Anderson (1886-1949) was a professor at Columbia and Harvard, and then an economist for Chase Bank.
Oh well, no one ever reads history anyway :) We'll just keep listening to the loony Keynesians that don't even know what competition, savings, scarcity, opportunity cost, or incentives are.
Ok, gonna ramble a little bit. I'm hungry. I get cranky when I'm hungry :)
Did you know Keynes' overall philosophy derived from the belief that Christianity was a mistake? It's true. He believed that the only reason people saved money was because it was the Christian thing to do. Christianity was a mistake and when people figured it out, capitalism would collapse.
Keynes believed we should focus on the present. He wanted us to get people away from focusing on the future. And then he built an elaborate theory to justify his belief. Then in Chapter 24 of General Theory, you find out that the whole thing is a joke and the guy is just another nitwit Socialist.
Ok, enough history for today. The point is, if you are looking at the market as the problem this week, and asking for more market oversight, you are an effing idiot that has never opened a history book.
Random questions that just make me wonder:
Do you think the Plunge Protection Team intervened yesterday?
Do you think the Federal Reserve had anything to do with the general rise in stocks over the last 15 months?
And where is all that money they created?
What are your thoughts? On Keynes? 1914? Yesterday? The PPT? The Fed?
Have a great weekend!
David in Qatar