a project on the great depression of 1929 and the recent global meltdown

8/9/2019 A Project on The Great Depression of 1929 and the Recent Global Meltdown

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Eg|~fl}j|efg\`m K~mo| Lmt~mzzefg {oz o zmym~m {f~al{elm mjfgfbej lmt~mzzefg eg |`m lmjolm

t~mjmlegk [f~al [o~ EE' \`m |ebegk fi |`m K~mo| Lmt~mzzefg yo~eml oj~fzz go|efgz! n}| eg

bfz| jf}g|~emz e| z|o~|ml eg onf}| ?5>5 ogl aoz|ml }g|ea |`m ao|m ?5:4z f~ mo~au ?55! ?5>5 (cgf{g oz

Naojc \}mzlou%! n}| q}ejcau zt~mol |f oabfz| mym~u jf}g|~u eg |`m {f~al' \`m K~mo|

Lmt~mzzefg òl lmyoz|o|egk miimj|z eg ye~|}oaau mym~u jf}g|~u! ~ej` ogl tff~' Tm~zfgoa

Egjfbm |op ~mymg}m! t~fie|z ogl t~ejmz l~fttml! ogl eg|m~go|efgoa |~olm ta}gkml nu o òai

|f |{f"|è~lz'

Lmt~mzzefg ez |`m ~mz}a| fi ~mjmzzefg {èj` ez ~}ggegk |`~f}k` o lmjolm' ^mjmzzefg

bmogz {`mg |`m k~fzz lfbmz|ej t~fl}j| (KLT% fi o jf}g|~u lmjaegmz if~ |{f f~ bf~m

jfgzmj}|eym q}o~|m~z fi o umo~! |`m jfgle|efg ez cgf{g oz ~mjmzzefg'

Nmkeggegk eg |`m ]ge|ml Z|o|ml eg Lmjmbnm~ (ogl {e|` b}j` k~mo|m~ eg|mgze|u zegjm

Zmt|mbnm~ >440! ojjf~legk |f |`m Go|efgoa N}~mo} fi Mjfgfbej ^mzmo~j`% |`megl}z|~eoaexml {f~al òz nmmg }glm~kfegk o ~mjmzzefg! o t~fgf}gjml lmjmam~o|efg fi

mjfgfbej oj|eye|u' \èz Kafnoa ^mjmzzefg òz nmmg |ocegk eg mjfgfbejz mgye~fgbmg|

jò~oj|m~ezml yo~ef}z ebnoaogjmz ogl {oz zto~cml nu |`m f}|n~moc fi |`m iegogjeoa j~ezez

fi >44;>445' Oa|`f}k` |`m ao|m >444z òz o| |ebmz nmmg ~mim~~ml |f oz |`m Kafnoa

Bma|lf{g! |èz zobm t`~ozm òz nmmg }zml |f ~mim~ |f mym~u ~mjmzzefg fi zmym~oa

t~mjmlegk lmjolmz'

\`m K~mo| Lmt~mzzefg òz lmyoz|o|egk miimj|z eg ye~|}oaau mym~u jf}g|~u! ~ej` )

tff~']gmbtafubmg| eg |`m ]ge|ml Z|o|mz ~fzm |f >=- ogl eg zfbm jf}g|~emz ~fzm oz èk`

oz ::-' Je|emz oaa o~f}gl |`m {f~al {m~m è| ò~l! mztmjeoaau |`fzm lmtmglmg| fg `moyu

egl}z|~u' Jfgz|~}j|efg {oz ye~|}oaau òa|ml eg bogu jf}g|~emz' Eg |`m ~mjmg| Kafnoa

bma|lf{g! |`m Eg|m~go|efgoa Aonf}~ F~kogezo|efg( EAF% t~mlej|ml |ò| o| amoz| >4 beaaefg

hfnz {eaa òym nmmg afz| nu |`m mgl fi >445 l}m |f |`m j~ezez bfz|au eg .jfgz|~}j|efg!

~moa mz|o|m! iegogjeoa zm~yejmz! ogl |`m o}|f zmj|f~. n~egkegk {f~al }gmbtafubmg|

onfym >44 beaaefg if~ |`m ie~z| |ebm' \`m g}bnm~ fi }gmbtafuml tmftam {f~al{elm jf}al

?
http://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Cities_in_the_Great_Depressionhttp://en.wikipedia.org/wiki/Heavy_industryhttp://en.wikipedia.org/wiki/Heavy_industryhttp://en.wikipedia.org/wiki/Unemploymenthttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Cities_in_the_Great_Depressionhttp://en.wikipedia.org/wiki/Heavy_industryhttp://en.wikipedia.org/wiki/Heavy_industryhttp://en.wikipedia.org/wiki/Unemployment


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egj~mozm nu bf~m |òg =4 beaaefg eg >445 oz |`m kafnoa ~mjmzzefg eg|mgzeiemz! |`m EAF òz

if~mjoz|'

Eg Lmjmbnm~ >44;! |`m ]'Z' }gmbtafubmg| ~o|m {oz 445! |`m

}gmbtafubmg| ~o|m òl ~ezmg |f ?4'>-' O n~folm~ bmoz}~m fi }gmbtafubmg| (|ocegk eg|f

ojjf}g| bo~kegoaau o||oj`ml {f~cm~z! |`fzm mbtafuml to~| |ebm if~ mjfgfbej ~mozfgz!

ogl lezjf}~okml {f~cm~z% {oz ?9':-' Ztoeg+z }gmbtafubmg| ~o|m ~moj`ml ?0';- (:;-

if~ uf}|`z% eg Bou >445 |`m èk`mz| eg |`m m}~f xfgm' Eg H}au >445! im{m~ hfnz {m~m

afz| |òg mptmj|ml! lettegk |`m }gmbtafubmg| ~o|m i~fb 5'=- |f 5'4?4'

\`m ~ezm fi olyogjml mjfgfbemz eg N~oxea! Egleo! ogl Jègo egj~mozml |`m |f|oa

kafnoa aonf~ tffa l~obo|ejoaau' ^mjmg| ebt~fymbmg|z eg jfbb}gejo|efg ogl ml}jo|efg eg

|`mzm jf}g|~emz òz oaaf{ml {f~cm~z eg |`mzm jf}g|~emz |f jfbtm|m bf~m jafzmau {e|`

{f~cm~z eg |~ole|efgoaau z|~fgk mjfgfbemz! z}j` oz |`m ]ge|ml Z|o|mz' \èz `}km z}~km eg

aonf~ z}ttau òz t~fyelml lf{g{o~l t~mzz}~m fg {okmz ogl jfg|~en}|ml |f

}gmbtafubmg|'

>
http://en.wikipedia.org/wiki/List_of_U.S._states_by_unemployment_ratehttp://en.wikipedia.org/wiki/Discouraged_workerhttp://en.wikipedia.org/wiki/Spainhttp://en.wikipedia.org/wiki/Eurozonehttp://en.wikipedia.org/wiki/List_of_U.S._states_by_unemployment_ratehttp://en.wikipedia.org/wiki/Discouraged_workerhttp://en.wikipedia.org/wiki/Spainhttp://en.wikipedia.org/wiki/Eurozone


3/24

\`m K~mo| Lmt~mzzefg fi ?5>5 ogl |`m ^mjmg| Kafnoa

Bma|lf{gO jfbto~o|eym z|}lu fg leiim~mg| oztmj| fg |`m jfgzmq}mgjmz fi |`m

~mjmzzefg |`mg ogl gf{

Oa|`f}k` zfbm joz}oa jfbto~ezfgz nm|{mmg |`m ao|m">444z ~mjmzzefg ogl |`m

K~mo| Lmt~mzzefg òym nmmg bolm! |`m~m ~mboeg ao~km leiim~mgjmz nm|{mmg |`m |{f mymg|z'

N}| |`m jo}zmz fi nf|` o~m gf| zobm'

Z|o~| fi |`m K~mo| Lmt~mzzefg

@ez|f~eogz bfz| fi|mg o||~en}|m |`m z|o~| fi |`m K~mo| Lmt~mzzefg |f |`m

z}llmg ogl |f|oa jfaaotzm fi ]Z z|fjc bo~cm| t~ejmz fg Fj|fnm~ >5! ?5>5!

cgf{g oz \}mzlou' @f{mym~! zfbm lezt}|m |èz jfgja}zefg! ogl zmm |`m z|fjc

j~oz` oz o zubt|fb! ~o|`m~ |òg o jo}zm fi |`m K~mo| Lmt~mzzefg' Mymg oi|m~

|`m [oaa Z|~mm| J~oz` fi ?5>5! ft|ebezb tm~zez|ml if~ zfbm |ebm3 Hf`g L'

^fjcmimaam~ zoel |ò| .\`mzm o~m louz {`mg bogu o~m lezjf}~okml' Eg |`m 5:

umo~z fi bu aeim! lmt~mzzefgz òym jfbm ogl kfgm' T~fztm~e|u òz oa{ouz~m|}~gml ogl {eaa okoeg'. \`m z|fjc bo~cm| |}~gml }t{o~l eg mo~au ?5:4!

~m|}~gegk |f mo~au ?5>5 amymaz nu Ot~ea! |`f}k` z|eaa oabfz| :4- nmaf{ |`m

tmoc fi Zmt|mbnm~ ?5>5' \fkm|`m~! kfym~gbmg| ogl n}zegmzz oj|}oaau ztmg|

bf~m eg |`m ie~z| òai fi ?5:4 |òg eg |`m jf~~mztfglegk tm~efl fi |`m t~myef}z

umo~' N}| jfgz}bm~z! bogu fi {`fb òl z}iim~ml zmym~m afzzmz eg |`m z|fjc

bo~cm| |`m t~myef}z umo~! j}| nojc |`me~ mptmgle|}~mz nu |mg tm~jmg|! ogl o

zmym~m l~f}k`| ~oyokml |`m ok~ej}a|}~oa `mo~|aogl fi |`m ]ZO nmkeggegk eg |`m

z}bbm~ fi ?5:4'

Nu bel"?5:4! eg|m~mz| ~o|mz òl l~fttml |f af{ amymaz! n}| mptmj|ml lmiao|efg ogl

|`m ~ma}j|ogjm fi tmftam |f oll gm{ lmn| nu nf~~f{egk! bmog| |ò| jfgz}bm~ ztmglegk

ogl egymz|bmg| {m~m lmt~mzzml' Eg Bou ?5:4! o}|fbfneam zoamz òl lmjaegml |f nmaf{ |`m

amymaz fi ?5>0' T~ejmz eg kmgm~oa nmkog |f lmjaegm! n}| {okmz `mal z|molu eg ?5:43 n}| |`mg

o lmiao|efgo~u zte~oa z|o~|ml eg ?5:?' Jfgle|efgz {m~m {f~zm eg io~begk o~moz! {`m~m

jfbbfle|u t~ejmz ta}gkml! ogl eg begegk ogl afkkegk o~moz! {`m~m }gmbtafubmg| {oz

èk` ogl |`m~m {m~m im{ f|`m~ hfnz' \`m lmjaegm eg |`m ]Z mjfgfbu {oz |`m ioj|f~ |ò|

:
http://en.wikipedia.org/wiki/Great_Depressionhttp://en.wikipedia.org/wiki/Wall_Street_Crash_of_1929http://en.wikipedia.org/wiki/Optimismhttp://en.wikipedia.org/wiki/John_D._Rockefellerhttp://en.wikipedia.org/wiki/John_D._Rockefellerhttp://en.wikipedia.org/wiki/Deflationhttp://en.wikipedia.org/wiki/Deflationary_spiralhttp://en.wikipedia.org/wiki/Economy_of_the_United_Stateshttp://en.wikipedia.org/wiki/Great_Depressionhttp://en.wikipedia.org/wiki/Wall_Street_Crash_of_1929http://en.wikipedia.org/wiki/Optimismhttp://en.wikipedia.org/wiki/John_D._Rockefellerhttp://en.wikipedia.org/wiki/John_D._Rockefellerhttp://en.wikipedia.org/wiki/Deflationhttp://en.wikipedia.org/wiki/Deflationary_spiralhttp://en.wikipedia.org/wiki/Economy_of_the_United_States


4/24

t}aaml lf{g bfz| f|`m~ jf}g|~emz o| ie~z|! ogl |`mg eg|m~goa {mocgmzzmz f~ z|~mgk|`z eg

moj` jf}g|~u bolm jfgle|efgz {f~zm f~ nm||m~' I~og|ej o||mbt|z |f z`f~m }t |`m mjfgfbemz

fi egleyel}oa go|efgz |`~f}k` t~f|mj|efgez| tfaejemz! z}j` oz |`m ?5:4 ]'Z' Zbff|@o{amu

\o~eii Oj| ogl ~m|oaeo|f~u |o~eiiz eg f|`m~ jf}g|~emz! mpojm~no|ml |`m jfaaotzm eg kafnoa

|~olm' Nu ao|m eg ?5:4! o z|molu lmjaegm zm| eg {èj` ~moj`ml nf||fb nu Bo~j` ?5::'

Jo}zmz

\`m~m {m~m b}a|etam jo}zmz if~ |`m ie~z| lf{g|}~g eg ?5>5! egja}legk |`m z|~}j|}~oa

{mocgmzzmz ogl ztmjeiej mymg|z |ò| |}~gml e| eg|f o bohf~ lmt~mzzefg ogl |`m {ou eg

{èj` |`m lf{g|}~g zt~mol i~fb jf}g|~u |f jf}g|~u' Eg ~mao|efg |f |`m ?5>5 lf{g|}~g!

èz|f~eogz mbtòzexm z|~}j|}~oa ioj|f~z aecm bozzeym nogc ioea}~mz ogl |`m z|fjc bo~cm|

j~oz`! {èam mjfgfbez|z tfeg| |f bfgm|o~u ioj|f~z z}j` oz oj|efgz nu |`m ]Z Imlm~oa

^mzm~ym |ò| jfg|~oj|ml |`m bfgmu z}ttau! ogl N~e|oeg+z lmjezefg |f ~m|}~g |f |`m Kfal

Z|oglo~l o| t~m"[f~al [o~ E to~e|emz (]Z,


5/24

eg jfgz}bt|efg ogl egymz|bmg| ztmglegk' Fgjm togej ogl lmiao|efg zm| eg! bogu tmftam

nmaemyml |`mu jf}al bocm bf~m bfgmu nu cmmtegk jamo~ fi |`m bo~cm|z oz t~ejmz l~fttml

af{m~ ogl o keymg obf}g| fi bfgmu nf}k`| mym~ bf~m kfflz! mpojm~no|egk |`m l~ft eg

lmbogl'

Zmjfgl! |`m~m o~m |`m bfgm|o~ez|z! {`f nmaemym |ò| |`m K~mo| Lmt~mzzefg z|o~|ml oz

og f~lego~u ~mjmzzefg! n}| |ò| zekgeiejog| tfaeju bez|ocmz nu bfgm|o~u o}|`f~e|emz

(mztmjeoaau |`m Imlm~oa ^mzm~ym%! jo}zml o z`~egcegk fi |`m bfgmu z}ttau {èj` k~mo|au

mpojm~no|ml |`m mjfgfbej ze|}o|efg! jo}zegk o ~mjmzzefg |f lmzjmgl eg|f |`m K~mo|

Lmt~mzzefg' ^mao|ml |f |èz mptaogo|efg o~m |`fzm {`f tfeg| |f lmn| lmiao|efg jo}zegk

|`fzm {`f nf~~f{ |f f{m mym~ bf~m eg ~moa |m~bz'

Cmugmzeog N~e|ez` mjfgfbez| Hf`g Bougo~l Cmugmz o~k}ml eg Kmgm~oa

\`mf~u fi Mbtafubmg| Eg|m~mz| ogl Bfgmu |ò| af{m~ okk~mko|m mptmgle|}~mz eg |`m

mjfgfbu jfg|~en}|ml |f o bozzeym lmjaegm eg egjfbm ogl |f mbtafubmg| |ò| {oz {maa

nmaf{ |`m oym~okm' Eg z}j` o ze|}o|efg! |`m mjfgfbu ~moj`ml mq}eaen~e}b o| af{ amymaz fi

mjfgfbej oj|eye|u ogl èk` }gmbtafubmg|' Cmugmz nozej elmo {oz zebtam8 |f cmmt tmftam

i}aau mbtafuml! kfym~gbmg|z òym |f ~}g lmieje|z {`mg |`m mjfgfbu ez zaf{egk! oz |`m

t~eyo|m zmj|f~ {f}al gf| egymz| mgf}k` |f cmmt t~fl}j|efg o| |`m gf~boa amyma ogl n~egk

|`m mjfgfbu f}| fi ~mjmzzefg' Cmugmzeog mjfgfbez|z joaaml fg kfym~gbmg|z l}~egk |ebmz

fimjfgfbej j~ezez |f tejc }t |`m zaojc nu egj~mozegk kfym~gbmg| ztmglegk ogl&f~ j}||egk

|opmz'

Oz |`m Lmt~mzzefg {f~m fg! ^ffzmyma| |~eml t}naej {f~cz! io~b z}nzelemz! ogl

f|`m~ lmyejmz |f ~mz|o~| |`m mjfgfbu! n}| gmym~ jfbtam|mau koym }t |~uegk |f noaogjm |`m

n}lkm|' Ojjf~legk |f |`m Cmugmzeogz! |èz ebt~fyml |`m mjfgfbu! n}| ^ffzmyma| gmym~

ztmg| mgf}k` |f n~egk |`m mjfgfbu f}| fi ~mjmzzefg }g|ea |`m z|o~| fi [f~al [o~ EE'

Gm{ jaozzejoa ott~foj` ^mjmg| {f~c i~fb o gmfjaozzejoa tm~ztmj|eym ifj}zmz

fg |`m lmjaegm eg t~fl}j|eye|u |ò| jo}zml |`m ege|eoa lmjaegm eg f}|t}| ogl o t~fafgkml

~mjfym~u l}m |f tfaejemz |ò| oiimj|ml |`m aonf}~ bo~cm|' \èz {f~c! jfaamj|ml nu Cm`fm

ogl T~mzjf||! lmjfbtfzmz |`m mjfgfbej lmjaegm eg|f o lmjaegm eg |`m aonf}~ if~jm! jote|oa

z|fjc! ogl |`m t~fl}j|eye|u {e|` {èj` |`mzm egt}|z o~m }zml' \èz z|}lu z}kkmz|z |ò|

|`mf~emz fi |`m K~mo| Lmt~mzzefg òym |f mptaoeg og ege|eoa zmym~m lmjaegm n}| ~otel

~mjfym~u eg t~fl}j|eye|u! ~mao|eymau ae||am jògkm eg |`m jote|oa z|fjc! ogl o t~fafgkml

=
http://en.wikipedia.org/wiki/Monetarismhttp://en.wikipedia.org/wiki/Federal_Reservehttp://en.wikipedia.org/wiki/Debt_deflationhttp://en.wikipedia.org/wiki/John_Maynard_Keyneshttp://en.wikipedia.org/wiki/General_Theory_of_Employment_Interest_and_Moneyhttp://en.wikipedia.org/wiki/General_Theory_of_Employment_Interest_and_Moneyhttp://en.wikipedia.org/wiki/Crisis_(economic)http://en.wikipedia.org/wiki/Government_spendinghttp://en.wikipedia.org/wiki/Agricultural_subsidyhttp://en.wikipedia.org/wiki/Labor_forcehttp://en.wikipedia.org/wiki/Monetarismhttp://en.wikipedia.org/wiki/Federal_Reservehttp://en.wikipedia.org/wiki/Debt_deflationhttp://en.wikipedia.org/wiki/John_Maynard_Keyneshttp://en.wikipedia.org/wiki/General_Theory_of_Employment_Interest_and_Moneyhttp://en.wikipedia.org/wiki/General_Theory_of_Employment_Interest_and_Moneyhttp://en.wikipedia.org/wiki/Crisis_(economic)http://en.wikipedia.org/wiki/Government_spendinghttp://en.wikipedia.org/wiki/Agricultural_subsidyhttp://en.wikipedia.org/wiki/Labor_force


6/24

lmt~mzzefg eg |`m aonf}~ if~jm' \èz ogoauzez ~mhmj|z |`mf~emz |ò| ifj}z fg |`m ~fam fi

zoyegkz ogl tfze| o lmjaegm eg |`m jote|oa z|fjc'

Egmq}oae|u fi {moa|` ogl egjfbm \{f mjfgfbez|z fi |`m ?5>4z! [olleaa

Jo|jègkz ogl [eaaeob \~}iog| Ifz|m~! tft}ao~exml o |`mf~u |ò| egia}mgjml bogu tfaeju

bocm~z! egja}legk @m~nm~| @ffym~! @mg~u O' [oaaojm! To}a Lf}kaoz! ogl Bo~~egm~

Mjjamz' E| `mal |`m mjfgfbu t~fl}jml bf~m |òg e| jfgz}bml! nmjo}zm |`m jfgz}bm~z lel

gf| òym mgf}k` egjfbm' \`}z |`m }gmq}oa lez|~en}|efg fi {moa|` |`~f}k`f}| |`m ?5>4z

jo}zml |`m K~mo| Lmt~mzzefg'

Ojjf~legk |f |èz yem{! |`m ~ff| jo}zm fi |`m K~mo| Lmt~mzzefg {oz o kafnoa

fym~egymz|bmg| eg `moyu egl}z|~u jotoje|u jfbto~ml |f {okmz ogl mo~gegkz i~fbeglmtmglmg| n}zegmzzmz! z}j` oz io~bz' \`m zfa}|efg {oz |`m kfym~gbmg| b}z| t}bt

bfgmu eg|f jfgz}bm~z+ tfjcm|z' \ò| ez! e| b}z| ~mlez|~en}|m t}~jòzegk tf{m~! boeg|oeg

|`m egl}z|~eoa nozm! n}| ~megiao|m t~ejmz ogl {okmz |f if~jm oz b}j` fi |`m egiao|efgo~u

egj~mozm eg t}~jòzegk tf{m~ eg|f jfgz}bm~ ztmglegk' \`m mjfgfbu {oz fym~n}ea|! ogl

gm{ ioj|f~emz {m~m gf| gmmlml' Ifz|m~ ogl Jo|jègkz ~mjfbbmglml imlm~oa ogl z|o|m

kfym~gbmg|z z|o~| ao~km jfgz|~}j|efg t~fhmj|z! o t~fk~ob ifaaf{ml nu @ffym~ ogl

^ffzmyma|'

\}~gegk tfeg| ogl ~mjfym~u

Yo~ef}z jf}g|~emz o~f}gl |`m {f~al z|o~|ml |f ~mjfym~ i~fb |`m K~mo| Lmt~mzzefg

o| leiim~mg| |ebmz' Eg bfz| jf}g|~emz fi |`m {f~al ~mjfym~u i~fb |`m K~mo| Lmt~mzzefg

nmkog eg ?5::' Eg |`m ]ge|ml Z|o|mz ~mjfym~u nmkog eg |`m zt~egk fi ?5::' @f{mym~! |`m

]'Z' lel gf| ~m|}~g |f ?5>5 KGT if~ fym~ o lmjolm ogl z|eaa òl og }gmbtafubmg| ~o|m fi

onf}| ?=- eg ?5=- eg ?5::'

\`m~m ez gf jfgzmgz}z obfgk mjfgfbez|z ~mko~legk |`m bf|eym if~jm if~ |`m ]'Z'

mjfgfbej mptogzefg |ò| jfg|eg}ml |`~f}k` bfz| fi |`m ^ffzmyma| umo~z' Ojjf~legk |f

J`~ez|ego ^fbm~! |`m bfgmu z}ttau k~f{|` jo}zml nu `}km eg|m~go|efgoa kfal egiaf{z

{oz o j~}jeoa zf}~jm fi |`m ~mjfym~u fi |`m ]ge|ml Z|o|mz mjfgfbu! ogl |ò| |`m mjfgfbu

z`f{ml ae||am zekg fi zmai"jf~~mj|efg' \`m kfal egiaf{z {m~m to~|au l}m |f lmyoa}o|efg fi

|`m ]'Z' lfaao~ogl to~|au l}m |f lm|m~ef~o|efg fi |`m tfae|ejoa ze|}o|efg eg M}~ftm' Eg |`me~

nffc! O Bfgm|o~u @ez|f~u fi |`m ]ge|ml Z|o|mz! Bea|fg I~emlbog ogl Oggo H' Zj`{o~|x

9
http://en.wikipedia.org/wiki/Waddill_Catchingshttp://en.wikipedia.org/wiki/Waddill_Catchingshttp://en.wikipedia.org/wiki/William_Trufant_Fosterhttp://en.wikipedia.org/wiki/Henry_A._Wallacehttp://en.wikipedia.org/wiki/Paul_Douglashttp://en.wikipedia.org/wiki/Marriner_Eccleshttp://en.wikipedia.org/wiki/Marriner_Eccleshttp://en.wikipedia.org/wiki/Distribution_of_wealthhttp://en.wikipedia.org/wiki/Root_causehttp://en.wikipedia.org/wiki/Consumer_spendinghttp://en.wikipedia.org/wiki/Christina_Romerhttp://en.wikipedia.org/wiki/Executive_Order_6102http://en.wikipedia.org/wiki/Executive_Order_6102http://en.wikipedia.org/wiki/A_Monetary_History_of_the_United_Stateshttp://en.wikipedia.org/wiki/Milton_Friedmanhttp://en.wikipedia.org/wiki/Anna_J._Schwartzhttp://en.wikipedia.org/wiki/Waddill_Catchingshttp://en.wikipedia.org/wiki/Waddill_Catchingshttp://en.wikipedia.org/wiki/William_Trufant_Fosterhttp://en.wikipedia.org/wiki/Henry_A._Wallacehttp://en.wikipedia.org/wiki/Paul_Douglashttp://en.wikipedia.org/wiki/Marriner_Eccleshttp://en.wikipedia.org/wiki/Marriner_Eccleshttp://en.wikipedia.org/wiki/Distribution_of_wealthhttp://en.wikipedia.org/wiki/Root_causehttp://en.wikipedia.org/wiki/Consumer_spendinghttp://en.wikipedia.org/wiki/Christina_Romerhttp://en.wikipedia.org/wiki/Executive_Order_6102http://en.wikipedia.org/wiki/Executive_Order_6102http://en.wikipedia.org/wiki/A_Monetary_History_of_the_United_Stateshttp://en.wikipedia.org/wiki/Milton_Friedmanhttp://en.wikipedia.org/wiki/Anna_J._Schwartz


7/24

oazf o||~en}|ml |`m ~mjfym~u |f bfgm|o~u ioj|f~z! ogl jfg|mglml |ò| e| {oz b}j` zaf{ml

nu tff~ bogokmbmg| fi bfgmu nu |`m Imlm~oa ^mzm~ym Zuz|mb' J}~~mg| Jòe~bog fi |`m

Imlm~oa ^mzm~ymNmg Nm~gogcm ok~mmz |ò| bfgm|o~u ioj|f~z taouml ebtf~|og| ~famz nf|`

eg |`m {f~al{elm mjfgfbej lmjaegm ogl mymg|}oa ~mjfym~u' Nm~gogcm oazf zmmz o z|~fgk

~fam if~ egz|e|}|efgoa ioj|f~z! to~|ej}ao~au |`m ~mn}ealegk ogl ~mz|~}j|}~egk fi |`m iegogjeoa

zuz|mb ogl tfeg|z f}| |ò| |`m Lmt~mzzefg gmmlz |f nm mpobegml eg eg|m~go|efgoa

tm~ztmj|eym' Mjfgfbez|z @o~fal A' Jfam ogl Amm M' Fògeog! nmaemym |ò| |`m mjfgfbu

z`f}al òym ~m|}~gml |f gf~boa oi|m~ if}~ umo~z fi lmt~mzzefg mpjmt| if~ jfg|eg}ml

lmt~mzzegk egia}mgjmz! ogl tfeg| |`m iegkm~ |f |`m aojc fi lf{g{o~l iampeneae|u eg t~ejmz

ogl {okmz! mgjf}~okml nu ^ffzmyma| Olbegez|~o|efg tfaejemz z}j` oz |`m Go|efgoa

Egl}z|~eoa ^mjfym~u Oj|' Zfbm mjfgfbez|z òym joaaml o||mg|efg |f |`m mptmj|o|efgz fi

~miao|efg ogl ~ezegk gfbegoa eg|m~mz| ~o|mz |ò| ^ffzmyma|+z {f~lz ogl oj|efgz tf~|mglml'

Umo~

;
http://en.wikipedia.org/wiki/Federal_Reserve_Systemhttp://en.wikipedia.org/wiki/Chairman_of_the_Federal_Reservehttp://en.wikipedia.org/wiki/Chairman_of_the_Federal_Reservehttp://en.wikipedia.org/wiki/Ben_Bernankehttp://en.wikipedia.org/wiki/National_Industrial_Recovery_Acthttp://en.wikipedia.org/wiki/National_Industrial_Recovery_Acthttp://en.wikipedia.org/wiki/Reflationhttp://en.wikipedia.org/wiki/Federal_Reserve_Systemhttp://en.wikipedia.org/wiki/Chairman_of_the_Federal_Reservehttp://en.wikipedia.org/wiki/Chairman_of_the_Federal_Reservehttp://en.wikipedia.org/wiki/Ben_Bernankehttp://en.wikipedia.org/wiki/National_Industrial_Recovery_Acthttp://en.wikipedia.org/wiki/National_Industrial_Recovery_Acthttp://en.wikipedia.org/wiki/Reflation


8/24

Jò~|8"E \`m fym~oaa jf}~zmz fi |`m Lmt~mzzefg eg |`m ]ge|ml Z|o|ml! oz ~miamj|ml eg tm~ jote|o KLT z`f{g eg |`m

jfgz|og| umo~ >444 umo~ lfaao~z! ta}z zfbm fi |`m cmu mymg|z fi |`m tm~efl'

Kfal z|oglo~l Mjfgfbej z|}lemz òym eglejo|ml |ò| h}z| oz |`m lf{g|}~g {ozzt~mol {f~al{elm nu |`m ~ekele|emz fi |`m Kfal Z|oglo~l! e| {oz z}ztmglegk kfal

jfgym~|eneae|u (f~ lmyoa}egk |`m j}~~mgju eg kfal |m~bz% |ò| lel bfz| |f bocm ~mjfym~u

tfzzenam' [ò| tfaejemz jf}g|~emz ifaaf{ml oi|m~ joz|egk fii |`m kfal z|oglo~l! ogl {ò|

~mz}a|z ifaaf{ml yo~eml {elmau'

Mym~u bohf~ j}~~mgju ami| |`m kfal z|oglo~l l}~egk |`m K~mo| Lmt~mzzefg' K~mo|

N~e|oeg {oz |`m ie~z| |f lf zf' Iojegk ztmj}ao|eym o||ojcz fg |`mtf}gl ogl lmtam|egk kfal

~mzm~ymz! eg Zmt|mbnm~ ?5:? |`m Nogc fi Mgkaogl jmozml mpjògkegk tf}gl gf|mz if~

kfal ogl |`m tf}gl {oz iafo|ml fg if~mekg mpjògkm bo~cm|z' K~mo| N~e|oeg! Hotog! ogl

|`m Zjoglegoyeog jf}g|~emz ami| |`m kfal z|oglo~l eg ?5:?' F|`m~ jf}g|~emz! z}j` oz E|oau

ogl |`m ]ge|ml Z|o|mz! ~mboegml fg |`m kfal z|oglo~l eg|f ?5:> f~ ?5::! {èam o im{

jf}g|~emz eg |`m zf"joaaml .kfal nafj.! aml nu I~ogjm ogl egja}legk Tfaogl! Nmake}b ogl

Z{e|xm~aogl! z|ouml fg |`m z|oglo~l }g|ea ?5:=?5:9' Ojjf~legk |f ao|m~ ogoauzez! |`m

mo~aegmzz {e|` {èj` o jf}g|~u ami| |`m kfal z|oglo~l ~maeonau t~mlej|ml e|z mjfgfbej

~mjfym~u' If~ mpobtam! K~mo| N~e|oeg ogl Zjoglegoyeo! {èj` ami| |`m kfal z|oglo~l eg

?5:?! ~mjfym~ml b}j` mo~aem~ |òg I~ogjm ogl Nmake}b! {èj` ~mboegml fg kfal b}j`

afgkm~' Jf}g|~emz z}j` oz Jègo! {èj` òl o zeaym~ z|oglo~l! oabfz| oyfelml |`m

lmt~mzzefg mg|e~mau' \`m jfggmj|efg nm|{mmg amoyegk |`m kfal z|oglo~l oz o z|~fgk

t~mlej|f~ fi |ò| jf}g|~u+z zmym~e|u fi e|z lmt~mzzefg ogl |`m amgk|` fi |ebm fi e|z ~mjfym~u

òz nmmg z`f{g |f nm jfgzez|mg| if~ lfxmgz fi jf}g|~emz! egja}legk lmymaftegk jf}g|~emz'

\èz to~|au mptaoegz {ù |`m mptm~emgjm ogl amgk|` fi |`m lmt~mzzefg leiim~ml nm|{mmg

go|efgoa mjfgfbemz

[f~al [o~ EE ogl ~mjfym~u \`m jfbbfg yem{ obfgk mjfgfbej èz|f~eogz ez

|ò| |`m K~mo| Lmt~mzzefg mglml {e|` |`m olymg| fi [f~al [o~ EE' Bogu mjfgfbez|z

nmaemym |ò| kfym~gbmg| ztmglegk fg |`m {o~ jo}zml f~ o| amoz| ojjmam~o|ml ~mjfym~u i~fb

|`m K~mo| Lmt~mzzefg' @f{mym~! zfbm jfgzelm~ |ò| e| lel gf| taou o k~mo| ~fam eg |`m

~mjfym~u! oa|`f}k` e| lel `mat eg ~ml}jegk }gmbtafubmg|' \`m bozzeym ~mo~bobmg|

tfaejemz amolegk }t |f [f~al [o~ EE `matml z|eb}ao|m |`m mjfgfbemz fi M}~ftm eg ?5:;

0
http://en.wikipedia.org/wiki/Gold_Standardhttp://en.wikipedia.org/wiki/Gold_standardhttp://en.wikipedia.org/wiki/Speculative_attackhttp://en.wikipedia.org/wiki/Pound_sterlinghttp://en.wikipedia.org/wiki/Official_gold_reserveshttp://en.wikipedia.org/wiki/Official_gold_reserveshttp://en.wikipedia.org/wiki/Bank_of_Englandhttp://en.wikipedia.org/wiki/Silver_standardhttp://en.wikipedia.org/wiki/Developing_countryhttp://en.wikipedia.org/wiki/Gold_Standardhttp://en.wikipedia.org/wiki/Gold_standardhttp://en.wikipedia.org/wiki/Speculative_attackhttp://en.wikipedia.org/wiki/Pound_sterlinghttp://en.wikipedia.org/wiki/Official_gold_reserveshttp://en.wikipedia.org/wiki/Official_gold_reserveshttp://en.wikipedia.org/wiki/Bank_of_Englandhttp://en.wikipedia.org/wiki/Silver_standardhttp://en.wikipedia.org/wiki/Developing_country


9/24

:5' Nu ?5:;! }gmbtafubmg| eg N~e|oeg `ol ioaamg |f ?'= beaaefg' \`m bfneaexo|efg fi

bogtf{m~ ifaaf{egk |`m f}|n~moc fi {o~ eg ?5:5 iegoaau mglml }gmbtafubmg|' Obm~ejo+z

ao|m mg|~u eg|f |`m {o~ eg ?5


10/24

|f o ~ogkm fi egymz|f~z z}j` oz nogcz! b}|}oa i}glz! tmgzefg i}glz ogl egz}~ogjm

jfbtogemz'

Gmmlamzz |f zou! egz|e|}|efgz o| mym~u amyma o~m gf| i}aau ~el fi ~ezcz n}| |`fzm ~ezcz

o~m zò~ml ogl ~mz| eg ao~km bmoz}~m {e|` |`m iegoa egymz|f~z eg |`m jòeg' Ogl

}gif~|}go|mau oaa taoum~z {m~m mptfzml |f moj` f|`m~ ogl |f |`mzm |fpej ozzm|z' [`mg z}n"

t~ebm lmio}a|z nmkog |èz {`fam z|~}j|}~m jfaaotzml amolegk |f o iegogjeoa j~ezez fi keog|

t~ftf~|efgz'

\`m j~ezez òl o g}bnm~ fi jfgzmq}mgjmz eg |`m lmymaftml jf}g|~emz' E| bolm

`f}zm`falz {`fzm `fbmz {m~m gf{ {f~|` b}j` amzz bf~m jo}|ef}z eg |`me~ ztmglegk ogl

nf~~f{egk nmòyef}~! ~mz}a|egk eg o jfaaotzm fi jfgz}bt|efg ztmglegk'

E| bolm nogcz ogl iegogjeoa egz|e|}|efgz è| nu lmio}a| bf~m jo}|ef}z eg |`me~

amglegk! ~mz}a|egk eg o j~mle| j~}gj` |ò| nogc~}t|ml n}zegmzzmz' E| ~mz}a|ml eg o jfaaotzm eg

|`m yoa}m fi |`m ozzm|z `mal nu nogcz ogl iegogjeoa egz|e|}|efgz! t}z egk |`mb eg|f

egzfaymgju'

Oaa |èz ~mz}a|ml eg o `}km t}aa f}| fi jote|oa i~fb |`m mbm~kegk bo~cm|z8 Gm|

t~eyo|m iaf{z fi jote|oa |f lmymaftegk jf}g|~emz o~m t~fhmj|ml |f lmjaegm |f ,=:4 neaaefg eg

>445! i~fb ,? |~eaaefg eg >44;'

\`m miimj|z |èz òl fg j~mle| ogl lmbogl jfbnegml {e|` o zò~t ioaa eg mptf~|z!

|f |~ogzbe| |`m ~mjmzzefg |f lmymaftegk jf}g|~emz' Oaa fi |`mzm miimj|z zffg |~ogzao|ml eg|f

o jfaaotzm fi lmbogl ogl o j~ezez eg |`m ~moa mjfgfbu {e|` ioaaegk f}|t}| ogl ~ezegk

}gmbtafubmg|' \èz ez fgau {f~zmgegk |`m iegogjeoa j~ezez mymg i}~|`m~'

Jo}zmz

Z}nt~ebm amglegk oz o jo}zm

Nozml fg |`m ozz}bt|efg |ò| z}nt~ebm amglegk t~mjete|o|ml |`m j~ezez! zfbm òym

o~k}ml |ò| |`m Jaeg|fg Olbegez|~o|efg bou nm to~|eoaau |f naobm! {èam f|`m~z òym

tfeg|ml |f |`m tozzokm fi |`m K~obb"Amoj`"Naeamu Oj| nu |`m ?49|` Jfgk~mzz! ogl

fym~"amym~okegk nu nogcz ogl egymz|f~z mokm~ |f ojèmym èk` ~m|}~gz fg jote|oa'

?4
http://en.wikipedia.org/wiki/Gramm-Leach-Bliley_Acthttp://en.wikipedia.org/wiki/106th_United_States_Congresshttp://en.wikipedia.org/wiki/Gramm-Leach-Bliley_Acthttp://en.wikipedia.org/wiki/106th_United_States_Congress


11/24

Zfbm nmaemym |`m ~ff|z fi |`m j~ezez jog nm |~ojml le~mj|au |f z}nt~ebm amglegk nu

Ioggem Bom ogl I~mllem Boj! {èj` ez kfym~gbmg|! ztfgzf~ml mg|e|emz' \`m Gm{ Uf~c

\ebmz t}naez`ml og o~|ejam |ò| ~mtf~|ml |`m Jaeg|fg Olbegez|~o|efg t}z`ml if~ z}nt~ebm

amglegk8 .Ioggem Bom! |`m go|efg+z nekkmz| }glm~{~e|m~ fi `fbm bf~|kokmz! òz nmmg

}glm~ egj~mozegk t~mzz}~m i~fb |`m Jaeg|fg Olbegez|~o|efg |f mptogl bf~|kokm afogz

obfgk af{ ogl bflm~o|m egjfbm tmftam. (GU\! :4 Zmt|mbnm~ ?555%'

Eg ?55=! |`m olbegez|~o|efg oazf |egcm~ml {e|` Jo~|m~+z Jfbb}ge|u ^megymz|bmg|

Oj| fi ?5;; nu ~mk}ao|egk ogl z|~mgk|`mgegk |`m og|e"~mlaegegk t~fjml}~mz' E| ez ima| nu

bogu |ò| |èz {oz lfgm |f `mat nffz| o z|okgo|ml `fbm f{gm~zèt iek}~m |ò| òl

`fym~ml o~f}gl 9=- if~ bogu umo~z' \`m ~mz}a| {oz o t}z` nu |`m olbegez|~o|efg if~

k~mo|m~ egymz|bmg|! nu iegogjeoa egz|e|}|efgz! eg|f ~ezcem~ afogz' Eg o >444 ]ge|ml Z|o|mz

Lmto~|bmg| fi |`m \~moz}~u z|}lu fi amglegk |~mglz if~ :4= je|emz i~fb ?55: |f ?550 e|

{oz z`f{g |ò| ,


12/24

o~m o| |`m `mo~| fi |`m j~ezez' @f{mym~! zfbm mjfgfbez|z fnhmj| |f zegkaegk f}| |`m ~mtmoa

fi Kaozz"Z|mokoaa if~ j~e|ejezb' N~ol LmAfgk! o if~bm~ olyezf~ |f T~mzelmg| Jaeg|fg ogl

mjfgfbez| o| |`m ]geym~ze|u fi Joaeif~geo! Nm~cmamu ogl \uam~ Jf{mg fi Kmf~km Bozfg

]geym~ze|u òym nf|` o~k}ml |ò| |`m K~obb"Amoj`"Naeamu Oj| zfi|mgml |`m ebtoj| fi |`m

j~ezez nu oaaf{egk if~ bm~km~z ogl ojq}eze|efgz fi jfaaotzegk nogcz oz |`m j~ezez }gifalml

eg ao|m >440'

Fym~"amym~okegk! j~mle| lmio}a| z{otz ogl jfaao|m~oaexml lmn| fnaeko|efgz oz

jo}zmz

Ogf|`m~ t~fnonam jo}zm fi |`m j~ezezogl o ioj|f~ |ò| }gq}mz|efgonau obtaeieml

e|z bokge|}lm{oz {elmzt~mol bezjoaj}ao|efg nu nogcz ogl egymz|f~z fi |`m amyma fi ~ezc

eg`m~mg| eg |`m }g~mk}ao|ml Jfaao|m~oaexml lmn| fnaeko|efg ogl J~mle| Lmio}a| Z{ot

bo~cm|z' ]glm~ |èz |`mf~u! nogcz ogl egymz|f~z zuz|mbo|exml |`m ~ezc nu |ocegk olyog|okm

fi af{ eg|m~mz| ~o|mz |f nf~~f{ |~mbmglf}z z}bz fi bfgmu |ò| |`mu jf}al fgau tou nojc

ei |`m `f}zegk bo~cm| jfg|eg}ml |f egj~mozm eg yoa}m'

Ojjf~legk |f og o~|ejam t}naez`ml eg [e~ml! |`m ~ezc {oz i}~|`m~ zuz|mbo|exml nu

|`m }zm fiLoyel P' Ae+z Ko}zzeog jft}ao bflma i}gj|efg |f ~otelau t~ejm Jfaao|m~oaexml

lmn| fnaeko|efgz nozml fg |`m t~ejm fi ~mao|ml J~mle| Lmio}a| Z{otz' Nmjo}zm e| {oz èkàu|~oj|onam! e| ~otelau jobm |f nm }zml nu o `}km tm~jmg|okm fi JLF ogl JLZ egymz|f~z!

ezz}m~z! ogl ~o|egk okmgjemz' Ojjf~legk |f fgm {e~ml'jfb o~|ejam8 .\`mg |`m bflma imaa

oto~|' J~ojcz z|o~|ml ottmo~egk mo~au fg! {`mg iegogjeoa bo~cm|z nmkog nmòyegk eg {ouz

|ò| }zm~z fi Ae+z if~b}ao òlg+| mptmj|ml' \`m j~ojcz nmjobm i}aa"iamlkml jogufgz eg

>440{`mg ~}t|}~mz eg |`m iegogjeoa zuz|mb+z if}glo|efg z{oaaf{ml }t |~eaaefgz fi

lfaao~z ogl t}| |`m z}~yeyoa fi |`m kafnoa nogcegk zuz|mb eg zm~ef}z tm~ea'''Ae+z Ko}zzeog

jft}ao if~b}ao {eaa kf lf{g eg èz|f~u oz egz|~}bmg|oa eg jo}zegk |`m }gio|`fbonam

afzzmz |ò| n~f}k`| |`m {f~al iegogjeoa zuz|mb |f e|z cgmmz'.

\`m t~ejegk bflma if~ JLFz jamo~au lel gf| ~miamj| |`m amyma fi ~ezc |`mu

eg|~fl}jml eg|f |`m zuz|mb' E| òz nmmg mz|ebo|ml |ò| |`m .i~fb ao|m >44= |f |`m bellam fi

>44;! o~f}gl ,


13/24

if~ èk` q}oae|u JLFz òz nmmg ott~fpebo|mau :> jmg|z fg |`m lfaao~! {èam |`m ~mjfym~u

~o|m if~ bmxxogegm JLF+z òz nmmg ott~fpebo|mau ieym jmg|z if~ mym~u lfaao~' \`mzm

bozzeym! t~oj|ejoaau }g|ègconam! afzzmz òym l~obo|ejoaau ebtoj|ml |`m noaogjm z`mm|z fi

nogcz oj~fzz |`m kafnm! amoyegk |`mb {e|` ym~u ae||am jote|oa |f jfg|eg}m ftm~o|efgz'

J~mle| j~mo|efg oz o jo}zm

\`m O}z|~eog Zj`ffa fi Mjfgfbejz t~ftfzmz |ò| |`m j~ezez ez og mpjmaamg| mpobtam

fi |`m O}z|~eog N}zegmzz Jujam \`mf~u! eg {èj` j~mle| j~mo|ml |`~f}k` |`m tfaejemz fi

jmg|~oa nogcegk keymz ~ezm |f og o~|eiejeoa nffb! {èj` ez egmye|onau ifaaf{ml nu o n}z|'

\èz tm~ztmj|eym o~k}mz |ò| |`m bfgm|o~u tfaeju fi jmg|~oa nogcz j~mo|mz mpjmzzeym

q}og|e|emz fi j`mot j~mle| nu zm||egk eg|m~mz| ~o|mz nmaf{ {`m~m |`mu {f}al nm zm| nu o i~mm

bo~cm|' \èz mozu oyoeaoneae|u fi j~mle| egzte~mz o n}glam fi boaegymz|bmg|z! to~|ej}ao~au

fg afgk |m~b t~fhmj|z z}j` oz `f}zegk ogl jote|oa ozzm|z! ogl oazf zt}~z o jfgz}bt|efg

nffb oz egjmg|eymz |f zoym o~m lebegez`ml' \`}z og }gz}z|oegonam nffb o~ezmz!

jò~oj|m~exml nu boaegymz|bmg|z ogl fym~jfgz}bt|efg'

N}| |`m j~mo|ml j~mle| ez gf| nojcml nu ogu ~moa zoyegkz gf~ ez eg ~mztfgzm |f ogu

jògkm eg |`m ~moa mjfgfbu! `mgjm! |`m~m o~m tùzejoaau gf| mgf}k` ~mzf}~jmz |f iegogjm

me|`m~ |`m boaegymz|bmg|z f~ |`m jfgz}bt|efg ~o|m eglmiege|mau' \`m n}z| fjj}~z {`mg

egymz|f~z jfaamj|eymau ~moaexm |`me~ bez|ocm' \èz òttmgz }z}oaau zfbm |ebm oi|m~ eg|m~mz|

~o|mz ~ezm okoeg' \`m aeq}elo|efg fi |`m boaegymz|bmg|z ogl |`m jfgzmq}mg| ~ml}j|efg eg

jfgz}bt|efg |`~f{ |`m mjfgfbu eg|f o ~mjmzzefg! {`fzm zmym~e|u be~~f~z |`m zjoam fi |`m

nffb+z mpjmzzmz'

\`m O}z|~eog Zj`ffa o~k}mz |ò| |`m jfgle|efgz t~myef}z |f |`m j~ezez fi |`m ao|m

>444z jf~~mztfgl mpoj|au |f |`m zjmgo~ef lmzj~enml onfym' \`m jmg|~oa nogc fi |`m ]ge|ml

Z|o|mz! aml nu Imlm~oa ^mzm~ym Jòe~bog Oaog K~mmgztog! cmt| eg|m~mz| ~o|mz ym~u af{ if~

o afgk tm~efl fi |ebm |f na}g| |`m ~mjmzzefg fi |`m mo~au >444z' \`m ~mz}a|egk

boaegymz|bmg| ogl fym~jfgz}bt|efg fi egymz|f~z ogl jfgz}bm~z t~fbt|ml |`m

lmymaftbmg| fi o `f}zegk n}nnam |ò| }a|ebo|mau n}~z|! t~mjete|o|egk |`m iegogjeoa j~ezez'

\èz j~ezez! |fkm|`m~ {e|` z}llmg ogl gmjmzzo~u lmamym~okegk ogl j}|nojcz nu jfgz}bm~z!

n}zegmzzmz ogl nogcz! aml |f |`m ~mjmzzefg' O}z|~eog Mjfgfbez|z o~k}m i}~|`m~ |ò| {èam

|`mu t~fnonau oiimj|ml |`m go|}~m ogl zmym~e|u fi |`m j~ezez! ioj|f~z z}j` oz o aojc fi

?:
http://en.wikipedia.org/wiki/Austrian_School_of_Economicshttp://en.wikipedia.org/wiki/Austrian_Business_Cycle_Theoryhttp://en.wikipedia.org/wiki/Central_bankhttp://en.wikipedia.org/wiki/Boom_and_busthttp://en.wikipedia.org/wiki/Boom_and_busthttp://en.wikipedia.org/wiki/Monetary_policyhttp://en.wikipedia.org/wiki/Interest_ratehttp://en.wikipedia.org/wiki/Liquidationhttp://en.wikipedia.org/wiki/Alan_Greenspanhttp://en.wikipedia.org/wiki/Leverage_(finance)http://en.wikipedia.org/wiki/Austrian_School_of_Economicshttp://en.wikipedia.org/wiki/Austrian_Business_Cycle_Theoryhttp://en.wikipedia.org/wiki/Central_bankhttp://en.wikipedia.org/wiki/Boom_and_busthttp://en.wikipedia.org/wiki/Boom_and_busthttp://en.wikipedia.org/wiki/Monetary_policyhttp://en.wikipedia.org/wiki/Interest_ratehttp://en.wikipedia.org/wiki/Liquidationhttp://en.wikipedia.org/wiki/Alan_Greenspanhttp://en.wikipedia.org/wiki/Leverage_(finance)


14/24

~mk}ao|efg! |`m Jfbb}ge|u ^megymz|bmg| Oj|! ogl mg|e|emz z}j` oz Ioggem Bom ogl

I~mllem Boj o~m egz}iiejemg| nu |`mbzmaymz |f mptaoeg e|'

O}z|~eog mjfgfbez|z o~k}m |ò| |`m èz|f~u fi |`m uemal j}~ym i~fb >444 |`~f}k`

>44; eaa}z|~o|mz |`m ~fam |ò| j~mle| j~mo|efg nu |`m Imlm~oa ^mzm~ym bou òym taouml eg

|`m fg"zm| fi |`m iegogjeoa j~ezez eg >44; ogl >440' \`m uemal j}~ym (oazf cgf{g oz |`m

|m~b z|~}j|}~m fi eg|m~mz| ~o|mz% ez |`m zòtm if~bml nu o k~ot` z`f{egk ]Z \~moz}~u Neaa

f~ Nfgl eg|m~mz| ~o|mz fg |`m ym~|ejoa opez ogl |ebm |f bo|}~e|u fg |`m `f~exfg|oa opez'

[`mg z`f~|"|m~b eg|m~mz| ~o|mz o~m af{m~ |òg afgk"|m~b eg|m~mz| ~o|mz |`m uemal j}~ym ez

zoel |f nm tfze|eymau zaftml' [`mg z`f~|"|m~b eg|m~mz| ~o|mz o~m èk`m~ |òg afgk"|m~b

eg|m~mz| ~o|mz |`m uemal j}~ym ez zoel |f nm egym~|ml' [`mg afgk |m~b ogl z`f~| |m~b

eg|m~mz| ~o|mz o~m mq}oa |`m uemal j}~ym ez zoel |f nm iao|' \`m uemal j}~ym ez nmaemyml nu

zfbm |f nm o z|~fgk t~mlej|f~ fi ~mjmzzefg ({`mg egym~|ml% ogl egiao|efg ({`mg tfze|eymau

zaftml%' @f{mym~! |`m uemal j}~ym ez nmaemyml |f oj| fg |`m ~moa mjfgfbu {e|` o aok fi ? |f

: umo~z'

O tfze|eymau zaftml uemal j}~ym oaaf{z T~ebo~u Lmoam~z (z}j` oz ao~km egymz|bmg|

nogcz% eg |`m Imlm~oa ^mzm~ym Zuz|mb |f i}gl |`mb {e|` j`mot z`f~| |m~b bfgmu {èam

amglegk f}| o| èk`m~ afgk"|m~b ~o|mz' \èz z|~o|mku ez t~fie|onam zf afgk oz |`m uemal j}~ym

~mboegz tfze|eymau zaftml' @f{mym~! e| j~mo|mz o aeq}ele|u ~ezc ei |`m uemal j}~ym {m~m |f

nmjfbm egym~|ml ogl nogcz {f}al òym |f ~mi}gl |`mbzmaymz o| mptmgzeym z`f~| |m~b ~o|mz

{èam afzegk bfgmu fg afgkm~ |m~b afogz'

\`m go~~f{egk fi |`m uemal j}~ym i~fb >44< ogl |`m egym~zefg fi |`m uemal j}~ym

l}~egk >44; ~mz}a|ml ({e|` |`m mptmj|ml ? |f : umo~ lmaou% eg o n}~z|egk fi |`m `f}zegk

n}nnam ogl o {eal ku~o|efg fi jfbbfle|emz t~ejmz oz bfgmuz iaf{ml f}| fi ozzm|z aecm

`f}zegk f~ z|fjcz ogl zf}k`| zoim òymg eg jfbbfle|emz' \`m t~ejm fi fea ~fzm |f fym~

,?440 nmif~m ta}gkegk oz |`m iegogjeoa j~ezez nmkog |f |ocm `fal

eg ao|m >440'

F|`m~ fnzm~ym~z òym lf}n|ml |`m ~fam |ò| |`m uemal j}~ym taouz eg jfg|~faaegk |`m

n}zegmzz jujam' Eg o Bou >449 z|f~u JGG Bfgmu ~mtf~|ml8 eg ~mjmg| jfbbmg|z!

Iml Jòe~bog Nmg Nm~gogcm ~mtmo|ml |`m yem{ mpt~mzzml nu èz t~mlmjmzzf~ Oaog

K~mmgztog |ò| og egym~|ml uemal j}~ym ez gf afgkm~ o kffl eglejo|f~ fi o ~mjmzzefg

o`mol'

?


15/24

Fea t~ejmz

Mjfgfbez| Hobmz L' @obea|fg òz o~k}ml |ò| |`m egj~mozm eg fea t~ejmz eg |`mtm~efl fi >44; |`~f}k` >440 {oz o zekgeiejog| jo}zm fi |`m ~mjmzzefg' @m myoa}o|ml

zmym~oa leiim~mg| ott~foj`mz |f mz|ebo|egk |`m ebtoj| fi fea t~ejm z`fjcz fg |`m mjfgfbu!

egja}legk zfbm bm|`flz |ò| òl t~myef}zau z`f{g o lmjaegm eg |`m ~mao|efgzèt nm|{mmg

fea t~ejm z`fjcz ogl |`m fym~oaa mjfgfbu' Oaa fi |`mzm bm|`flz .z}ttf~| o jfbbfg

jfgja}zefg3 òl |`m~m nmmg gf egj~mozm eg fea t~ejmz nm|{mmg >44;8_: ogl >4408_>! |`m

]Z mjfgfbu {f}al gf| òym nmmg eg o ~mjmzzefg fym~ |`m tm~efl >44;8_< |`~f}k`

>4408_:'. @obea|fg+z f{g bflma! o |ebm"zm~emz mjfgfbm|~ej if~mjoz| nozml fg lo|o }t |f

>44:! z`f{ml |ò| |`m lmjaegm eg KLT jf}al òym nmmg z}jjmzzi}aau t~mlej|ml |f oabfz|

e|z i}aa mp|mg| keymg cgf{amlkm fi |`m t~ejm fi fea' \`m ~mz}a|z ebtau |ò| fea t~ejmz {m~m

mg|e~mau ~mztfgzenam if~ |`m ~mjmzzefg3 `f{mym~! @obea|fg èbzmai ojcgf{amlkml |ò| |èz

{oz t~fnonau gf| |`m jozm n}| boeg|oegml |ò| e| z`f{ml |ò| fea t~ejm egj~mozmz bolm o

zekgeiejog| jfg|~en}|efg |f |`m lf{g|}~g eg mjfgfbej k~f{|`'

F|`m~ jaoebml jo}zmz

Bogu aenm~|o~eogz! egja}legk Jfgk~mzzbog ogl if~bm~ >440 T~mzelmg|eoa joglelo|m

^fg To}a ogl Tm|m~ Zjèiieg èz nffc J~oz` T~ffi! jaoeb |f òym t~mlej|ml |`m j~ezez t~ef~

|f e|z fjj}~~mgjm' Zjèii oazf bolm o ztmmj` eg >449 eg {èj` `m t~mlej|ml |`m ioea}~m fi

Ioggem ogl I~mllem' \`mu o~m j~e|ejoa fi |`mf~emz |ò| |`m i~mm bo~cm| jo}zml |`m j~ezez ogl

egz|mol o~k}m |ò| |`m Imlm~oa ^mzm~ym+z mptogzefgo~u bfgm|o~u tfaeju ogl |`m

Jfbb}ge|u ^megymz|bmg| Oj| o~m |`m t~ebo~u jo}zmz fi |`m j~ezez' Oaog K~mmgztog!

if~bm~Imlm~oa ^mzm~ym jòe~bog! òz zoel `m {oz to~|eoaau {~fgk |f fttfzm ~mk}ao|efg fi

|`m bo~cm|z! ogl mpt~mzzml .z`fjcml leznmaemi. o| |`m ioea}~m fi zmai eg|m~mz|! oafgm! |f

bogokm ~ezc eg |`m bo~cm|z'

Og mbte~ejoa z|}lu nu Hf`g N' \ouaf~jfgja}lml |ò| |`m j~ezez {oz8 (?% jo}zml nu

mpjmzz bfgm|o~u mptogzefg3 (>% t~fafgkml nu og egoneae|u |f myoa}o|m jf}g|m~"to~|u ~ezc

l}m |f ftoq}m iegogjeoa z|o|mbmg|z3 ogl (:% {f~zmgml nu |`m }gt~mlej|onam go|}~m fi

kfym~gbmg|+z ~mztfgzm |f |`m j~ezez'

?=
http://en.wikipedia.org/wiki/James_D._Hamiltonhttp://en.wikipedia.org/wiki/Libertarianshttp://en.wikipedia.org/wiki/Ron_Paulhttp://en.wikipedia.org/wiki/Peter_Schiffhttp://en.wikipedia.org/wiki/Expansionary_monetary_policyhttp://en.wikipedia.org/wiki/Community_Reinvestment_Acthttp://en.wikipedia.org/wiki/Federal_Reservehttp://en.wikipedia.org/wiki/John_B._Taylorhttp://en.wikipedia.org/wiki/James_D._Hamiltonhttp://en.wikipedia.org/wiki/Libertarianshttp://en.wikipedia.org/wiki/Ron_Paulhttp://en.wikipedia.org/wiki/Peter_Schiffhttp://en.wikipedia.org/wiki/Expansionary_monetary_policyhttp://en.wikipedia.org/wiki/Community_Reinvestment_Acthttp://en.wikipedia.org/wiki/Federal_Reservehttp://en.wikipedia.org/wiki/John_B._Taylor


16/24

E| òz oazf nmmg lmno|ml |ò| |`m ~ff| jo}zm fi |`m j~ezez ez fym~t~fl}j|efg fi kfflz

jo}zml nu kafnoaexo|efg (ogl mztmjeoaau yoz| egymz|bmg|z eg jf}g|~emz z}j` oz Jègo ogl

Egleo nu {mz|m~g b}a|ego|efgoa jfbtogemz fym~ |`m toz| ?=>4 umo~z! {èj` k~mo|au

egj~mozml kafnoa egl}z|~eoa f}|t}| o| o ~ml}jml jfz|%' Fym~t~fl}j|efg |mglz |f jo}zm

lmiao|efg ogl zekgz fi lmiao|efg {m~m myelmg| eg Fj|fnm~ ogl Gfymbnm~ >440! oz

jfbbfle|u t~ejmz |}bnaml ogl |`m Imlm~oa ^mzm~ym {oz af{m~egk e|z |o~km| ~o|m |f og oaa"

|ebm"af{ 4'>=-'Fg |`m f|`m~ ògl! T~fimzzf~@m~bog Loau z}kkmz|z |ò| e| ez gf| oj|}oaau

og mjfgfbej j~ezez! n}| ~o|`m~ o j~ezez fifym~k~f{|` nmufgl z}z|oegonam mjfafkejoa aebe|z'

\èz ~miamj|z o jaoeb bolm eg |`m ?5;> nffcAebe|z |f K~f{|`! {èj` z|o|ml |ò| {e|`f}|

bohf~ lmyeo|efg i~fb |`m tfaejemz ifaaf{ml eg |`m >4|` jmg|}~u! o tm~bogmg| mgl fi

mjfgfbej k~f{|` jf}al nm ~moj`ml zfbm|ebm eg |`m ie~z| |{f lmjolmz fi |`m >?z| jmg|}~u!

l}m |f k~ol}oa lmtam|efg fi go|}~oa ~mzf}~jmz'

Ogoauzez

?9
http://en.wikipedia.org/wiki/Overproductionhttp://en.wikipedia.org/wiki/Globalizationhttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Multinational_companieshttp://en.wikipedia.org/wiki/Deflationhttp://en.wikipedia.org/wiki/Herman_Dalyhttp://en.wikipedia.org/wiki/Exponential_growthhttp://en.wikipedia.org/wiki/The_Limits_to_Growthhttp://en.wikipedia.org/wiki/Overproductionhttp://en.wikipedia.org/wiki/Globalizationhttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Multinational_companieshttp://en.wikipedia.org/wiki/Deflationhttp://en.wikipedia.org/wiki/Herman_Dalyhttp://en.wikipedia.org/wiki/Exponential_growthhttp://en.wikipedia.org/wiki/The_Limits_to_Growth


17/24

Jfbto~ezfg ]gmbtafubmg| ô|m nm|{mmg

\`m K~mo| Lmt~mzzefg (?5>5% ) |`m ^mjmg| Kafnoa Bma|lf{g

Jò~|8"EE O aegmo~ k~ot` fi |`m }gmbtafubmg| ~o|m i~fb ?5>4 |f >4?4

\`m K~mo| Lmt~mzzefg ez z|o~|ml i~fb |`m ao|m ?5>5z' Eg ?5>4z |`m }gmbtafubmg|

~o|m {oz ='>-' If~ |`m K~mo| Lmt~mzzefg! |`m }gmbtafubmg| ~o|m {oz egj~mozml eg ?5:4

) |`m ~o|m {oz 0';-' \`m }gmbtafubmg| ~o|m fi ?5=4 ez amzz |òg |`m }gmbtafubmg|

~o|m fi ?5:4' E| ez mptaoegml |ò| |`m K~mo| Lmt~mzzefg ez oabfz|' \`mg oaa lmymaftml

jf}g|~u iojml |èz lmt~mzzefg' Oaa lmymaftml jf}g|~u {oz |ocmg |f fym~jfbm |èz

lmt~mzzefg oabfz| :4 umo~z' \`m boeg lo~c t`~ozm fi |`m K~mo| Lmt~mzzefg {oz ?5444 |`m }gmbtafubmg|

~o|m ez |`m af{mz| (4?4% ez ='5- amzz

|òg |`m K~mo| Lmt~mzzefg (?5:4%' E| ez jamo~ |ò| |`m miimj| fi |`m ^mjmg| Kafnoa

Bma|lf{g ez amzz |òg |`m miimj| fi |`m K~mo| Lmt~mzzefg' \`m leiim~mgjm fi |`m

?;


18/24

}gmbtafubmg| fi |`m ^mjmg| Kafnoa Bma|lf{g ez >'0- i~fb |`m K~mo| Lmt~mzzefg

(?5:4%'

Egymz|bmg| eg Leiim~mg| Zmj|f~ (kfym~gbmg|! `f}zm`fal ogl

t~eyo|m jf~tf~o|m% i~fb ?5>4 |f >4?4

Jò~|8"EEE \`m l~obo|ej jògkmz |ò| òym |ocmg taojm eg Egleo+z egymz|bmg|'

\`m zò~m fi egymz|bmg| eg KLT! {èj` }zml |f `fym~ o~f}gl >=-! òz kfgm oaa

|`m {ou }t |f


19/24

jògkm b}j` i~fb umo~ |f umo~' @f}zm`fal egymz|bmg| ez oazf ~mao|eymau z|onam' T~eyo|m

jf~tf~o|m egymz|bmg| bfymz o~f}gl z}nz|og|eoaau! nozml fg |`m ft|ebezb fi |`m t~eyo|m

zmj|f~ onf}| Egleo+z i}|}~m'

T~eyo|m jf~tf~o|m egymz|bmg| {oz o| o~f}gl =- {`mg Go~ozebò ôf ogl

Bogbfòg Zegk` }gamoz`ml |`m ~mif~bz fi |`m mo~au ?554z' \ ez koym o ~ezm eg

egymz|bmg| |f ?4-' \`mg |`m n}zegmzz jujam lf{g|}~g jobm onf}|! ogl e| imaa nojc |f =-'

Oi|m~ |èz! |`m ~mif~bz fi |`m Yohtoumm kfym~gbmg| i~fb ?555 |f >44> {m~m onam |f

~mekge|m jfgielmgjm! ogl t~eyo|m jf~tf~o|m egymz|bmg| {mg| nojc }t |f ?9- fi KLT' \`m

g}bm~ejoa yoa}mz zmmg eg |`m egymz|bmg| tetmaegm |flou o~m zebtau mgf~bf}z' \`m mp|mg|

|f {èj` e| ez |~ogzao|ml eg|f oj|}oa egymz|bmg| ztmglegk ez fi mzzmgjm |f |`m gm{ afkej fi

Egleog n}zegmzz jujam ia}j|}o|efgz'

Ei |`m ~mjmg| }tz}~km fi t~eyo|m jf~tf~o|m egymz|bmg| ~mym~zmz e|zmai! {m jf}al zmm o

l~ft i~fb ?9- fi KLT |f 9- fi KLT' Moj` tm~jmg|okm tfeg| fi KLT! |flou! ez ^z'=4!

444 j~f~m! zf {m o~m lezj}zzegk bozzeym g}bnm~z' O |mg tm~jmg|okm tfeg| lmjaegm fi

t~eyo|m jf~tf~o|m egymz|bmg| ez o lmjaegm eg egymz|bmg| lmbogl fi ^z'=44! 444 j~f~m'

T~fl}j|efg ogl Ebtf~| fi Jote|oa Kfflz i~fb ?5>4 |f >440

Jò~|8"EY T~fl}j|efg ogl Ebtf~| fi Jote|oa Kfflz i~fb ?5>4 |f >440

\`m onfym jò~| z`f{z |ò| |`m t~fl}j|efg ogl ebtf~| ~o|m ez ioaa lf{g eg ?5>4 )?5:4' \`m t~fl}j|efg ~o|m ogl ebtf~| ~o|m o~m zaf{au k~f{g }t |eaa ?5;4z'Eg '?504z3 oaa

?5
http://www.business-beacon.com/kommon/bin/sr.php?kall=winvhttp://www.mayin.org/ajayshah/PDFDOCS/Shah2008_whatchanged.pdfhttp://www.mayin.org/ajayshah/PDFDOCS/Shah2008_whatchanged.pdfhttp://www.business-beacon.com/kommon/bin/sr.php?kall=winvhttp://www.mayin.org/ajayshah/PDFDOCS/Shah2008_whatchanged.pdfhttp://www.mayin.org/ajayshah/PDFDOCS/Shah2008_whatchanged.pdf


20/24

egl}z|~u iojml o z`f~| lmt~mzzefg' Oi|m~ >444! oaa n}zegmzz ioaaz eg |`m ~mjmzzefg' E| ez z|eaa

~}ggegk'

Eg ?5>5! oaa amyma mbtafummz fi |`m egl}z|~u iojml t~fnamb if~ |`m lmt~mzzefg' Oaa

lmymaftml jf}g|~u iojml |`m zobm t~fnamb nmjo}zm |`mu o~m lmtmglml fg ]Z' N}| eg |`m

~mjmg| kafnoa bma|lf{g `oz ioaamg |`m miimj|z fg |`m |ft amyma bogokm~z'

Jfgja}zefg

>4


21/24

Oa|`f}k` zfbm joz}oa jfbto~ezfgz nm|{mmg |`m ao|m">444z ~mjmzzefg ogl |`m

K~mo| Lmt~mzzefg òym nmmg bolm! |`m~m ~mboeg ao~km leiim~mgjmz nm|{mmg |`m |{f mymg|z'

\`m jfgzmgz}z obfgk mjfgfbez|z eg Bo~j` >445 {oz |ò| o lmt~mzzefg {oz gf| aecmau |f

fjj}~' ]JAO Oglm~zfg If~mjoz| le~mj|f~ Ml{o~l Amobm~ zoel fg Bo~j` >=! >445 |ò|

|`m~m òl gf| nmmg ogu bohf~ t~mlej|efgz o| |ò| |ebm {èj` ~mzmbnaml o zmjfgl K~mo|

Lmt~mzzefg8

.[m+ym i~ek`|mgml jfgz}bm~z |f |`m tfeg| {`m~m |`mu ebokegm |`m~m ez o kffl

t~fztmj| fi o K~mo| Lmt~mzzefg' \ò| jm~|oegau ez gf| eg |`m t~fztmj|' Gf ~mt}|onam

if~mjoz|m~ ez t~fl}jegk ogu|ègk aecm o K~mo| Lmt~mzzefg'.

Leiim~mgjmz mptaeje|au tfeg|ml f}| nm|{mmg |`m ~mjmzzefg ogl |`m K~mo| Lmt~mzzefgegja}lm |`m ioj|z |ò| fym~ |`m ;5 umo~z nm|{mmg ?5>5 ogl >440! k~mo| jògkmz fjj}~~ml eg

mjfgfbej tèafzftù ogl tfaeju! |`m z|fjc bo~cm| òl gf| ioaamg oz io~ oz e| lel eg ?5:> f~

?50>! |`m ?4"umo~ t~ejm"|f"mo~gegkz ~o|ef fi z|fjcz {oz gf| oz af{ oz eg |`m +:4z f~ +04z!

egiao|efg"olh}z|ml ]'Z' `f}zegk t~ejmz eg Bo~j` >445 {m~m èk`m~ |òg ogu |ebm zegjm

?054 (egja}legk |`m `f}zegknffbz fi |`m ?5;4z ogl +04z%! |`m ~mjmzzefg fi |`m mo~au +:4z

aoz|ml fym~ |`~mm"ogl"o"òai umo~z! ogl l}~egk |`m ?5:4z |`m z}ttau fi bfgmu (j}~~mgju

ta}z lmbogl lmtfze|z% imaa nu >=- ({`m~m oz eg >440 ogl >445 |`m Iml .òz |ocmg og }a|~o

affzm j~mle| z|ogjm.%' I}~|`m~bf~m! |`m }gmbtafubmg| ~o|m eg >440 ogl mo~au >445 ogl |`m

~o|m o| {èj` e| ~fzm {oz jfbto~onam |f bfz| fi |`m ~mjmzzefgz fjj}~~egk oi|m~[f~al [o~

EE! ogl {oz l{o~iml nu |`m >=- }gmbtafubmg| ~o|m tmoc fi |`m K~mo| Lmt~mzzefg'

T~ejm"|f"mo~gegkz ~o|efz òym um| |f l~ft oz af{ oz eg t~myef}z ~mjmzzefgz' Fg |èz

ezz}m! .e| ez j~e|ejoaau ebtf~|og|! |`f}k`! |f ~mjfkgexm |ò| leiim~mg| ogoauz|z òym leiim~mg|

mo~gegkz mptmj|o|efgz! ogl |`m jfgzmgz}z yem{ ez bf~m fi|mg {~fgk |òg ~ek`|'. Zfbm

o~k}m |ò| t~ejm"|f"mo~gegkz ~o|efz ~mboeg èk` nmjo}zm fi }gt~mjmlmg|ml ioaaz eg mo~gegkz'

\`~mm umo~z eg|f |`m K~mo| Lmt~mzzefg! }gmbtafubmg| ~moj`ml o tmoc fi >=- eg

|`m ]'Z' \`m ]ge|ml Z|o|mz mg|m~ml eg|f ~mjmzzefg eg Lmjmbnm~ >44;ogl eg Bo~j` >4453

]": }gmbtafubmg| ~moj`ml 0'=-'Eg Bo~j` >445! z|o|ez|ejeog Hf`g [eaaeobz .o~k}mSlR

|ò| bmoz}~mbmg| jògkmz ebtambmg|ml fym~ |`m umo~z bocm e| ebtfzzenam |f jfbto~m |`m

j}~~mg| }gmbtafubmg| ~o|m {e|` |ò| zmmg l}~egk |`m K~mo| Lmt~mzzefg.

>?
http://en.wikipedia.org/wiki/Great_Depressionhttp://en.wikipedia.org/wiki/UCLA_Andersonhttp://en.wikipedia.org/wiki/Economic_boomhttp://en.wikipedia.org/wiki/World_War_IIhttp://en.wikipedia.org/wiki/World_War_IIhttp://en.wikipedia.org/wiki/Price-to-earnings_ratiohttp://en.wikipedia.org/wiki/Great_Depressionhttp://en.wikipedia.org/wiki/UCLA_Andersonhttp://en.wikipedia.org/wiki/Economic_boomhttp://en.wikipedia.org/wiki/World_War_IIhttp://en.wikipedia.org/wiki/World_War_IIhttp://en.wikipedia.org/wiki/Price-to-earnings_ratio


22/24

Gfnma T~exm {eggegk Mjfgfbez| To}a C~}kbog t~mlej|ml o zm~emz fi lmt~mzzefgz eg

èz ^m|}~g |f Lmt~mzzefg Mjfgfbejz (>444%! nozml fg .ioea}~mz fg |`m lmbogl zelm fi |`m

mjfgfbu'. Fg Hog}o~u =! >445! `m {~f|m |ò| .t~mymg|egk lmt~mzzefgz ezg| |ò| mozu oi|m~

oaa. ogl |ò| .|`m mjfgfbu ez z|eaa eg i~mm ioaa'. Eg Bo~j` >445! C~}kbog mptaoegml |ò| o

bohf~ leiim~mgjm eg |èz ze|}o|efg ez |ò| |`m jo}zmz fi |èz iegogjeoa j~ezez {m~m i~fb |`m

zòlf{ nogcegk zuz|mb' .\`m j~ezez òzg+| egyfayml t~fnambz {e|` lm~mk}ao|ml

egz|e|}|efgz |ò| |ffc gm{ ~ezcz''' Egz|mol! e| egyfayml ~ezcz |ocmg nu egz|e|}|efgz |ò| {m~m

gmym~ ~mk}ao|ml eg |`m ie~z| taojm'.

Fg Imn~}o~u >>! GU] mjfgfbejz t~fimzzf~Gf}~ema ^f}nege zoel |ò| |`m j~ezez

{oz |`m {f~z| zegjm |`m K~mo| Lmt~mzzefg ogl |ò| {e|`f}| jfftm~o|efg nm|{mmg tfae|ejoa

to~|emz ogl if~mekg jf}g|~emz! ogl ei tff~ iezjoa tfaeju lmjezefgz (z}j` oz z}ttf~| fi

xfbnem nogcz% o~m t}~z}ml! |`m ze|}o|efg .jf}al nmjfbm oz nol oz |`m K~mo| Lmt~mzzefg'.

Fg Ot~ea >;! >445! ^f}nege mpt~mzzml o bf~m }tnmo| ozzmzzbmg| nu gf|egk |ò| .|`m

nf||fb fi |`m mjfgfbu S{eaa nm zmmgR |f{o~l |`m nmkeggegk f~ bellam fi gmp| umo~'.

Bo~cm| z|~o|mkez| Tèa Lf{ .zoel `m nmaemymz lez|egj|efgz mpez| nm|{mmg |`m j}~~mg|

bo~cm| boaoezm. ogl |`m K~mo| Lmt~mzzefg' \`m Lf{+z ioaa fi fym~ =4- eg ?; bfg|`z ez

zebeao~ |f o =44; {e|` egj~mozegk o||mg|efg nmegk

toel |f èz {f~c'

>>
http://en.wikipedia.org/wiki/Paul_Krugmanhttp://en.wikipedia.org/wiki/Shadow_banking_systemhttp://en.wikipedia.org/wiki/Nouriel_Roubinihttp://en.wikipedia.org/wiki/Zombie_bankshttp://en.wikipedia.org/wiki/Floyd_Norrishttp://en.wikipedia.org/wiki/The_New_York_Timeshttp://en.wikipedia.org/wiki/Southern_Methodist_Universityhttp://en.wikipedia.org/wiki/Ravi_Batrahttp://en.wikipedia.org/wiki/The_Downfall_of_Capitalism_and_Communismhttp://en.wikipedia.org/wiki/The_Downfall_of_Capitalism_and_Communismhttp://en.wikipedia.org/wiki/Soviet_Union_collapse#Dissolution_of_the_USSRhttp://en.wikipedia.org/wiki/Soviet_Union_collapse#Dissolution_of_the_USSRhttp://en.wikipedia.org/wiki/Capitalismhttp://en.wikipedia.org/wiki/Paul_Krugmanhttp://en.wikipedia.org/wiki/Shadow_banking_systemhttp://en.wikipedia.org/wiki/Nouriel_Roubinihttp://en.wikipedia.org/wiki/Zombie_bankshttp://en.wikipedia.org/wiki/Floyd_Norrishttp://en.wikipedia.org/wiki/The_New_York_Timeshttp://en.wikipedia.org/wiki/Southern_Methodist_Universityhttp://en.wikipedia.org/wiki/Ravi_Batrahttp://en.wikipedia.org/wiki/The_Downfall_of_Capitalism_and_Communismhttp://en.wikipedia.org/wiki/The_Downfall_of_Capitalism_and_Communismhttp://en.wikipedia.org/wiki/Soviet_Union_collapse#Dissolution_of_the_USSRhttp://en.wikipedia.org/wiki/Soviet_Union_collapse#Dissolution_of_the_USSRhttp://en.wikipedia.org/wiki/Capitalism


23/24

Eg èz iegoa t~mzz jfgim~mgjm oz t~mzelmg|! Kmf~km [' N}z` jaoebml |ò| eg

Zmt|mbnm~ >440 èz jèmi mjfgfbej olyezf~z òl zoel |ò| |`m mjfgfbej ze|}o|efg jf}al o|

zfbm tfeg| nmjfbm {f~zm |òg |`m K~mo| Lmt~mzzefg'

O |mg| je|u eg Zoj~obmg|f! Joaeif~geo {oz lmzj~enml oz .ebokmz! ò}g|egkau

~mbegezjmg| fi |`m ejfgej t`f|fz fi |`m ?5:4z ogl |`m K~mo| Lmt~mzzefg. ogl .myfjo|eym

Lmt~mzzefg"m~o ebokmz'.

Fg Ot~ea 9! >445 Ym~gfg A' Zbe|` fiim~ml |`m ùtf|`mzez .|ò| o iegogjeoa j~ezez

|ò| f~ekego|mz eg jfgz}bm~ lmn|! mztmjeoaau jfgz}bm~ lmn| jfgjmg|~o|ml o| |`m af{ mgl fi

|`m {moa|` ogl egjfbm lez|~en}|efg! jog nm |~ogzbe||ml q}ejcau ogl if~jmi}aau eg|f |`m

iegogjeoa zuz|mb' E| ottmo~z |ò| {m+~m {e|gmzzegk |`m zmjfgl k~mo| jfgz}bm~ lmn| j~oz`!|`m mgl fi o bozzeym jfgz}bt|efg negkm'.

Fg Ot~ea ?;! >445! `mol fi |`m EBILfbegeq}m Z|~o}zz"Co`g zoel |ò| |`m~m {oz o

jògjm |ò| jm~|oeg jf}g|~emz bou gf| ebtambmg| |`m t~ftm~ tfaejemz |f oyfel immlnojc

bmjògezbz |ò| jf}al mymg|}oaau |}~g |`m ~mjmzzefg eg|f o lmt~mzzefg' .\`m i~mm"ioaa eg

|`m kafnoa mjfgfbu bou nm z|o~|egk |f ono|m! {e|` o ~mjfym~u mbm~kegk eg >4?4! n}| |èz

lmtmglz j~}jeoaau fg |`m ~ek`| tfaejemz nmegk olft|ml |flou'. \`m EBI tfeg|ml f}| |ò|

}gaecm |`m K~mo| Lmt~mzzefg3 |èz ~mjmzzefg {oz zugj`~fgexml nu kafnoa eg|mk~o|efg fi

bo~cm|z' Z}j` zugj ~fgexml ~mjmzzefgz {m~m mptaoegml |f aoz| afgkm~ |òg |utejoa

mjfgfbej lf{g|}~gz ogl òym zaf{m~ ~mjfym~emz'

^mim~mgjmz

?' Zo~c`ma' Houlmn >44; Boj~fmjfgfbej \`mf~u Cfaco|o8 Nffc Zuglejo|m

T~eyo|m Aebe|ml'

>' L}|| ) Z}glo~ob >449Egleog Mjfgfbu Lmaè8 Z'Jògl

>:
http://en.wikipedia.org/wiki/George_W._Bushhttp://en.wikipedia.org/wiki/Tent_cityhttp://en.wikipedia.org/wiki/Sacramentohttp://en.wikipedia.org/wiki/Californiahttp://en.wikipedia.org/wiki/Vernon_L._Smithhttp://en.wikipedia.org/wiki/IMFhttp://en.wikipedia.org/wiki/Dominique_Strauss-Kahnhttp://en.wikipedia.org/wiki/George_W._Bushhttp://en.wikipedia.org/wiki/Tent_cityhttp://en.wikipedia.org/wiki/Sacramentohttp://en.wikipedia.org/wiki/Californiahttp://en.wikipedia.org/wiki/Vernon_L._Smithhttp://en.wikipedia.org/wiki/IMFhttp://en.wikipedia.org/wiki/Dominique_Strauss-Kahn


24/24

:' I~ogc! ^fnm~| @'3 Nm~gogcm! Nmg Z' >44; T~egjetam fi Boj~fmjfgfbejz

Noz|fg8 BjK~f{"@eaa

a project on the great depression of 1929 and the recent global meltdown

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