So why Wall Street crash

The finance part of it is only barely related to the material world.

Yes, and the fact that despite that those who work in it still are leaps and bounds materially better off than those who actually produce things means that it's a cancer and should be gotten rid of.

They produce money, it makes the world tick. And the idea that you can create value from basically nothing is quite fun. I enjoy it immensely.
Are you a commie or something, buddy?

because it fell from a very high place

They believed the economy was crashing so the economy crashed.

>They produce money, it makes the world tick.
The world is no better off having 2 dollar and X material resources than it would be having 1 dollars and X material resources.
>And the idea that you can create value from basically nothing is quite fun.
The idea of the "perfect murder", and the idea of being a genius warlord who can take over territory despite being materially outmatched are both highly intriguing ideas. Just because the idea of something is aesthetically pleasing doesn't mean someone should be paid to do it.
>I enjoy it immensely.
I enjoy posting on Veeky Forums immensely, but I'm not being paid to do so. Why should you be paid to do something that only helps some people at a cost to others?
>Are you a commie or something, buddy?
Yes.

Value is perception, and when the perception is that the value is overstated, a correction occurs. If the value continues to be overstated, a crash occurs.

1. Many people took out loans to buy stock betting that it would continue to go up as it had been for the past decade

2. This caused a bubble which ultimately popped causing a margin call

3. People tried to take out there money all at once to prevent having their holdings liquidated, but banks only hold a small percentage of their accounts liquid and many simply ran out of cash and shut down. People with accounts in those banks lost their savings or could only get pennies on the dollar.

4. As holdings were liquidated en masse the prices plunged further.

The world is demonstrably better off in places with the same resources but more money.
>should be paid to do something that only helps some people at a cost to others
At whose cost am I working, exactly?

>So Hoover took over and tried shooting people who came to him with their problems, and tried social programs to bring money back. Which made it worse. Same with FDR until ww2.
what

Jesuits?

>Regarding the Great Depression. You’re right, we did it. We’re very sorry. But thanks to you, we won’t do it again.

t. FED chairman Ben Bernake
federalreserve.gov/BOARDDOCS/SPEECHES/2002/20021108/

>worshipping a movie character that was created as satire

Youre conflating the stock market crash with the banking crash, brainlet. The latter happened in 1933. As a matter of fact there is ZERO (0) proof that the wallstreer crash caused the Great Depression

10 years later there exists a hilariously huge bubble in virtually every asset class. Fucking finance industry.

ww1 vets wanted to be paid and got shot. He tried making state-jobs and FDR's new deal was state jobs and welfare. Though, he only shot people if they were japanese in the USA.

quoted directly from "On Human Action" by Hinderberg Mises

Then what did?

Its not clear. Its still debated today. What is clear is that a causal relation between the crash and depression has yet to be found

Because Germany 1920's

banks allocate resources to human endeavours and they are damn good at it. they are far more important to an economy then muh factories

you can't allocate resources if there are no resources to allocate

also half the garbage banks do isn't actually allocation. if I buy a share of A on the market for 10 dollars and sell it to B for 11, I haven't "allocated resources".

So it's just a coincidence that it literally started the day of the crash?

not what my reading tells me

That reading isn't exactly at the standard of an ahr review article is it?

...

its from the oxford history of the united states series, so it is legit

A government bureaucrat produces nothing

A construction foreman produces nothing

A general doesn't do any of the fighting himself

So all of these jobs should be banished and humans should be mindless ants with no one to manage tasks or make long term plans? Kys. You have no idea how hard it is to manage a fucking shift at McDonalds, let alone manage a business or a battalion of men.

was going too fast

Can you post the bibliography they used?

>management isn't labor
What?

Replied to the wrong post
Meant to reply to

There isn't enough information given for this to change the traditional view of things. For starters we'd need to look at the aggregate analysis of the banks balance sheets, it's possible for example that the burn rate exceeded inflows starting around 1929, but they didn't actually run out of cash until 1933, but it would be a stretch to say the two are totally unrelated.

If you look at the inflation rates you see a trend beginning far earlier, in 1927 there was a deflation of 1.7% a year, which is much higher in real deflation when you factor in the asset bubble which should have been creating inflation on its own right. This is tricky to interpret. Money flowing into the stock markets should eventually make its way to the real economy, but prices are falling accross the board everywhere except for the stock market, meaning that in 1927-8 you needed to have an investment with at least a 3.4% return in order to not experience negative real interest on your savings, which perhaps accounts for the reduction in bank holdings.

I fucked up the calculations lol, deflation should actually make bank accounts more attractive, you sum that with the interest rates, which I'm too lazy to look up right now.

As I said. Oxford histories in those series are vaguely disguised undergrad text books ideosyncratically written for commission. Test their sources and don't take them as a field summary of current disciplinary consensus.

>ZERO PROOF!
>one book agrees
-_-

Because their currency was tied to gold so they couldn't devalue their currency without breaking the gold standard.

Of course, there are no resources to allocate yet. Your buying stock so they can invest in productive opportunities. If the productive opportunity pays off, the assets of the company/dividends increases.