This Day In History

3 Replies to “This Day In History”

1. Black Tuesday on October 30, 1929 was a bad day on the markets, but not as bad as Black Monday on October 19, 1987.
   I was not yet around to experience the first one, but I sure remember the second. At that time I was in my working life and building my nest egg for retirement. As we know, the market recovered and went on toward the next bubble down the road just before year 2000 with the internet craze.
   A more recent bad day in October was only seven years ago on Halloween 2006 when the rules on income trusts were changed. Got quite a haircut that day.
   Flaherty imposes new tax on income trusts
   But recovered from that one too. Always glad to see the end of October.

2. Foobert;
   We all know that it will happen again and probably sooner than later. Most investment advisors stand back and say ‘ride it out’. Most times that would be good advice. Coming out of 2008 I bought lots of good dividend stocks at rock bottom. However, as you experienced, when it is coupon clipping time of life the road back to black might not jive with retirement plans.
   I suspect the next collapse will be significantly longer than 1987 or 2008. It will probably rival 1929 when people lost faith in the governments ability to manage the countries finances. The progressives have never let an opportunity pass to pump FDR’s saving the nation myth.
   Reality will never raise its head before the next collapse as so much of today’s society depends on the status quo. When harsh reality sets in ever line item in the budget will suffer the ax.

3. The stock market crash and the great depression were two very distinct events.
   The crash resulted from a totally reckless roaring twenties stock bubble but
   privately fueled in much the same way as the recent real estate bubble/collapse.
   It’s roots went back to the Harding administration, a very irresponsible group of
   crooks. The great depression on the other hand, was caused by the best and brightest
   of FDR’s claque of “experts” who apparently didn’t know that restricting credit to
   Main Street as a way of correcting Wall Street was going to collapse the economy.
   As a measure of how bad things got, as blue chip roaring twenties 20/25/30 year
   leases ran out on rented HQ buildings in Manhattan, the real estate companies went
   bankrupt in the 1940s and 1950s because rents and building valuations still had never
   recovered to 1920s levels.