Steve Sailer (guest) meinte am 5. Jan, 10:12:
Thanks
Thanks, that explains a lot about the 1938 crash that I didn't know. Roosevelt won a huge victory at the polls in 1936 and promptly overreached, most famously with packing the Supreme Court, but your posting explains his more disastrous economic policies. When it came to economics, FDR didn't know what he was doing, but a lot of Americans appreciated that he was at least trying stuff, unlike Hoover who had frozen up, and so something eventually might work.
Donald A. Coffin (guest) antwortete am 5. Jan, 18:29:
The usual explanation of the 1937/1938 recession is that the Federal Reserve became concerned about a resurgence of inflation. It attacked this by raising the required reserve ratio, which soaked up excess reserves at a time at which banks wanted to have excess reserves. (I think you'll find this consistent with Freidman and Schwartz A Monetary History of the Univted States, among other references).
HedgeFundGuy antwortete am 5. Jan, 20:00:
The reserve requirement was clearly a factor too, but the tax on "undistributed profits" is what made it the most pronounced recession in our history in my opinion. That the policy was rescinded so quickly reminds me of the Carter credit controls in 1980 that caused a sharp, quick dive in GDP, quickly reversed and forgotten.
