tag:blogger.com,1999:blog-33693245.post1360229776498158299..comments2024-03-04T23:40:58.133+05:30Comments on The Big Picture: Stock market gloom and doomThe Big Picturehttp://www.blogger.com/profile/06018983225756352176noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-33693245.post-85686431380421300852007-08-09T20:15:00.000+05:302007-08-09T20:15:00.000+05:30I agree that the declines in the stock market do n...I agree that the declines in the stock market do not (necessarily) mean that the economy is going south ... but it does send a signal ... In the US, the subprime woes have been somewhat exaggerated ... true, many mortgage companies have (and will fail) and banks will take a hit ... but many parts of the country remains strong and are weathering the storm<BR/><BR/>On the issue of 1929/Depression, it is interesting that for several months after the October 1929 crash, the market actually edged up slowly ... there were many reasons for the depression - the Smoot Hawley act imposing restrictions on trade and tariffs on imports to the US were a primary cause for the onset and worsening of the economic conditions (according to the Wall Street Journal) <BR/><BR/>The 1987 crash was significantly worse than the 1929 crash - yet after some hiccups, the economy started growing again ... Greenspan, at the Federal Reserve helm, did all the right things (so it seems) - With the Democrats controlling the US Congress, there is a lot of talk from Charlie Rangel and Chuck Shumer on trade restrictions and tarrifs to deal with the "deficits" ... So, I worry that Smoot Hawley may be raised from the dead ...Krishnanhttps://www.blogger.com/profile/10392990372263068251noreply@blogger.com