tag:blogger.com,1999:blog-3276688108456391559.post7948848314843359082..comments2024-02-27T13:41:46.698+08:00Comments on SG Young Investment: What The 1929 Great Depression, 1918 Spanish Flu and COVID-19 Have In Common?SGYIhttp://www.blogger.com/profile/09445517891969740960noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-3276688108456391559.post-89267932653576751362020-05-09T14:07:19.356+08:002020-05-09T14:07:19.356+08:00Yes fully agree with you. Hope we do not reach the...Yes fully agree with you. Hope we do not reach the stage which you described. Will be really scary for us to live through that. SGYIhttps://www.blogger.com/profile/09445517891969740960noreply@blogger.comtag:blogger.com,1999:blog-3276688108456391559.post-6782039520112837222020-05-06T09:41:56.373+08:002020-05-06T09:41:56.373+08:00I do not think this pandemic will lead to GD as of...I do not think this pandemic will lead to GD as of current situation. But I say current situation. Unless there is a second wave and world continue to have up to few months of lockdown. And if there is war either in the Arab region or US-China starts to increase tension to the brink of firing missiles. The world will probably print so much money after this crisis and if few years down the road there will be a currency crisis where dollars will eventually depreciate, then it will be scary<br />Rolf Sueyhttps://www.blogger.com/profile/10723925075715114650noreply@blogger.comtag:blogger.com,1999:blog-3276688108456391559.post-9069816698470710432020-05-06T08:17:15.202+08:002020-05-06T08:17:15.202+08:00Hi RS,
Thanks for sharing. Hope we are not seeing...Hi RS,<br /><br />Thanks for sharing. Hope we are not seeing this kind of situation now which I don't think we are in the same situation as the GD back then.SGYIhttps://www.blogger.com/profile/09445517891969740960noreply@blogger.comtag:blogger.com,1999:blog-3276688108456391559.post-3994204470052874682020-05-05T21:56:49.324+08:002020-05-05T21:56:49.324+08:00Hi SGYI, the increase in tax and contract in Money...Hi SGYI, the increase in tax and contract in Money Supply is not the root reason for the Great Depression. If you delve more years before GD, you will realise that the reason of increase tax and contract in MS is just surface reasons. <br /><br />The root cause is because of during WW1, Europe was in war, but not USA for most part. Hence, EU is busy creating war machines, but all essentials imported from USA. US became so rich after the war with so much gold. And then came Instalments and all the new household technological appliance and automobiles boom. Wall Street also boom! Everyone is spending and spending taking on debts thinking that economy will get better and better. Stock market euphoria. And debts mounting. <br /><br />Finally, there will always be up cycle and down cycle due to debts. The good times in 1920s leading to late 1929, eventually created a stock market crash, because you just cannot keep on spend on stock prices and creating supply when the real economy demand in USA is no longer as strong after the WW1 ended, bcos EU started to produce for themselves unlike during wartime. <br /><br />With demand drop, and excess supply and debts mounting due to instalment spendings, eventually banks are to collapse, and many more. All the savings of people gone into nothing! Demand continue to fall as people spend less, and it led to more job losses. Stocks continue to crash. It is a vicious cycle down. Due to banks collapse, people do not believe in holding money anymore, they hold essentials. That is when there is a hyperinflation. <br /><br />Government have no choice, and hence have to contract Money Supply. US$ is peg to gold back then, they cannot like now FIAT currency just print and print! And government is poor themselves and have to increase Tax. This led to worst of the worst in the economy. <br /><br />Hence, the root cause of depression is not contraction of MS nor increase of tax. It is the human nature of optimism in life (with more and more pleasures) and the Euphoria due to greed to earn more and more money in Wall Street, and taking higher risks and higher bets, that led to the fall! <br /><br /><br /><br />Therefore there is a quite de<br /><br />Rolf Sueyhttps://www.blogger.com/profile/10723925075715114650noreply@blogger.com