- Joined
- Jan 23, 2022
- Messages
- 1,966
- Points
- 83
1. The Great Depression of 1929 was a combination of several factors, but the main cause was the stock market crash, whereby investors pulled out their funds, speculators wiped out along with manufacturing closing down as they have no more funds to expand, manufacture & create jobs.
The wealthy rich were comfortable, will millions more, living in ivory towers & criticized the govt of failures, without lending a hand to the economy, while soup kitchens sprouted up to feed the 99% needy, organized by the govt, charities & churches.
2. Fortunately, the greatest economist the World had even seen - John Maynard Keynes, with just a simple concept - Money MUST be CIRCULATED - saved the World & pulled out Humankind from the depression in mere months. He had the ear of President Herbert Hoover, & thru him, used whatever govt revenues that existed to go on public infrastructure projects.
Jobs were created, salaries paid, entrepreneur supply chains sprout up, & with earnings, manufacturing restarted again.
3. The current root cause of the stock market reversal is yet again investors pulling out their funds in fear of the long necessary tariffs to save USA & employment. It's their life or corporate savings, thus in uncertain times, they would have to reassess the markets again, especially those that would be severely hit by tariffs, before re-investing in oversold blue chip stocks.
As PrezTrump is open to negotiations over the tariffs issues for FAIR trading, once the investors home-work is done, money will flow back to the markets, BUT ONLY for blue chip stocks that had resolved their over-reliance on stubborn foreign companies or their supply chains.
USA is a full resource Nation. It has all it needs to meet every level of necessity for growth & evolution - talents & mineral/agricultural resource. With high tariffs on long overly dependent foreign firms to meet some of those needs but now are more expensive, it only creates opportunities for innovative entrepreneurs to rise up & thus creating jobs, lower costing products in a free market, bringing in revenue to the economy.
Thus, such are BUYING signals in the stock market to watch for.
As an example - Nike stock price.
Vietnam had offered to slashed its tariffs to zero on US goods, in the hope that US may do the same. It is still being negotiated, but at least, Nike stocks rosed once that offered was made, as Nike has one the largest manufacturing hub in Vietnam.
.
The wealthy rich were comfortable, will millions more, living in ivory towers & criticized the govt of failures, without lending a hand to the economy, while soup kitchens sprouted up to feed the 99% needy, organized by the govt, charities & churches.
2. Fortunately, the greatest economist the World had even seen - John Maynard Keynes, with just a simple concept - Money MUST be CIRCULATED - saved the World & pulled out Humankind from the depression in mere months. He had the ear of President Herbert Hoover, & thru him, used whatever govt revenues that existed to go on public infrastructure projects.
Jobs were created, salaries paid, entrepreneur supply chains sprout up, & with earnings, manufacturing restarted again.
3. The current root cause of the stock market reversal is yet again investors pulling out their funds in fear of the long necessary tariffs to save USA & employment. It's their life or corporate savings, thus in uncertain times, they would have to reassess the markets again, especially those that would be severely hit by tariffs, before re-investing in oversold blue chip stocks.
As PrezTrump is open to negotiations over the tariffs issues for FAIR trading, once the investors home-work is done, money will flow back to the markets, BUT ONLY for blue chip stocks that had resolved their over-reliance on stubborn foreign companies or their supply chains.
USA is a full resource Nation. It has all it needs to meet every level of necessity for growth & evolution - talents & mineral/agricultural resource. With high tariffs on long overly dependent foreign firms to meet some of those needs but now are more expensive, it only creates opportunities for innovative entrepreneurs to rise up & thus creating jobs, lower costing products in a free market, bringing in revenue to the economy.
Thus, such are BUYING signals in the stock market to watch for.
As an example - Nike stock price.
Vietnam had offered to slashed its tariffs to zero on US goods, in the hope that US may do the same. It is still being negotiated, but at least, Nike stocks rosed once that offered was made, as Nike has one the largest manufacturing hub in Vietnam.
.
