Tuesday, September 23, 2008


Bespoke Investment Group compiled a group of headlines for last week: "Someone once said that you can tell a story is really important when the Wall Street Journal runs the lead headline across the entire front page. Well this week, we didn't get one day where the headline ran the entire front page, we got five! Whether or not you agree with the various actions taken this week, remember as much of it as you can, because whatever the outcome, good or bad, people will be talking about this forever."

There are other recent headlines, such as the one in the most recent The Economist issue:

This all prompted me to find headlines that occurred in 1929-1932 and here's what I found:

Stocks Soar As Bank Aid Ends Fear of Money Panic
-- New York Herald Tribune, March 28, 1929
Banker Says Boom Will Run Into 1930
-- The World, March 30, 1929
September 1929
There is no cause to worry. The high tide of prosperity will continue”
- Andrew W. Mellon, Secretary of the Treasury

October 14, 1929
“Secretary Lamont and officials of the Commerce Department today denied rumors that a severe depression in business and industrial activity was impending, which had been based on a mistaken interpretation of a review of industrial and credit conditions issued earlier in the day by the Federal Reserve Board.”
– New York Times

Brokers to Open Offices on Ships (ARE YOU SERIOUS?)
-- The World, October 4, 1929
Public Liquidation Spurred by Bears, Hits Low Market
-- The World, October 20, 1929
Brokerage Houses Are Optimistic on the Recovery of Stocks - Brokers in Meeting Predict Recovery
-- The New York Times, October 25, 1929
Brokers Believe Worst Is Over and Recommend Buying of Real Bargains
-- New York Herald Tribune, October 27, 1929
October 29, 1929 - Stock Market Crashes! Here's a chart:
Gigantic Bank Pool Pledged To Avert Disaster as Second Big Crash Stuns Wall Street (sound familiar?)
-- The World, October 29, 1929
Stocks Up in Strong Rally; Rockefellers Big Buyers; Exchanges Close 2-1/2 Days
-- New York Herald Tribune, October 31, 1929


December 5, 1929
“The Government’s business is in sound condition.”
– Andrew W. Mellon, Secretary of the Treasury

Very Prosperous Year Is Forecast
-- The World, December 15, 1929

June 29, 1930
The worst is over without a doubt.
– James J. Davis, Secretary of Labor.

August 29, 1930
“American labor may now look to the future with confidence.”
– James J. Davis, Secretary of Labor.

September 12, 1930
“We have hit bottom and are on the upswing.”
– James J. Davis, Secretary of Labor.

October 16, 1930
“Looking to the future I see in the further acceleration of science continuous jobs for our workers. Science will cure unemployment.”

– Charles M. Schwab.

November 1930
“I see no reason why 1931 should not be an extremely good year.”

– Alfred P. Sloan, Jr., General Motors Co.


January 20, 1931
“The country is not in good condition.”

– Calvin Coolidge.

June 9, 1931
“The depression has ended.”

– Dr. Julius Klein, Assistant Secretary of Commerce.

August 12, 1931
“Henry Ford has shut down his Detroit automobile factories almost completely. At least 75,000 men have been thrown out of work.”

– The Nation.

Rhea was RIGHT!:

July 21, 1932
“I believe July 8, 1932 was the end of the great bear market.”

Dow Theorist, Robert Rhea.


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