Use access key #2 to skip to page content.

The Not Stock Market Crash of 1914 or How I Learned to Love the Free Market



May 07, 2010 – Comments (8)

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

8 Comments – Post Your Own

#1) On May 07, 2010 at 7:54 AM, ChrisGraley (28.61) wrote:

PPT most definately intervened!

Report this comment
#2) On May 07, 2010 at 8:38 AM, lucangone (< 20) wrote:

Mention of 1914 may be apt; we may be on the brink of another of those 'knock the pieces off the table' episodes they call 'war'. Do Fools here think they'll be exempt from service at the Front because of the important war-work they do? I suppose you'll all be officers, anyway.

Report this comment
#3) On May 07, 2010 at 9:07 AM, binve (< 20) wrote:

>>Ok, gonna ramble a little bit.  I'm hungry.  I get cranky when I'm hungry :)

My gut is telling my no... but my gut is also hungy ... :).

Report this comment
#4) On May 07, 2010 at 9:32 AM, Gazelleit (< 20) wrote:

PPT did intervene. If we all save due to Christianity, Keynes did teach this generation to "live for the day". We forgot everything we were taught. The Baby boomers will be pulling their money out today so watch for more market "Trading Errors".

Report this comment
#5) On May 07, 2010 at 10:24 AM, whereaminow (< 20) wrote:


Sushi buffet all you can eat for $25.  HUGE!  Feeling much better now:)


I found something that might interest you.  You probably know all this info, but I read it and thought of you immediately.  Didn't know about Dominica.... 

David in Qatar


Report this comment
#6) On May 07, 2010 at 5:24 PM, FleaBagger (27.55) wrote:

You want to hear about a great food deal? I'm in San Antonio, and the Taco Cabana here has a delicious "cabana bowl" for $3.00, and there's a great (okay, pretty good) slasa bar for free. It has guacamole on it, too. Good guac. It's priced like Taco Bell, but it tastes as fresh as Chipotle.

Report this comment
#7) On May 14, 2010 at 2:19 PM, kdakota630 (29.06) wrote:

Another excellent blog, and I almost missed it.

Report this comment
#8) On May 14, 2010 at 2:42 PM, caterpillar10 wrote:

Taco Cabana.....

El Paso after a grueling road trip across New Mexico...looks like everything is closed or closing up and I'm wondering how to survive w/o a meal & just 1 little dwingk:( and then I discovered TC. Everything I totally wanted to eat but fell in love with the plain or strawberry running Margarita taps. That pitcher saved my life. The after bar line was a little long but worth the wait. 

Report this comment

Featured Broker Partners