Our '1937 Moment' Already Happened
Many market pundits are wondering if we are at our "1937 moment." In the Great Depression, the stock market went on a massive four-year rally off the bottom, driven by a booming economy, only to stall out and decline 50% in 1937 as the world slumped back into recession. Rightly or wrongly, the renewed slump is attributed to the Federal Reserve's decision to tighten credit conditions.
Four years after our own debacle, monetary policy is impotent, and inflation is stirring. Many wonder if the Fed will tighten, causing the economy to slump and the stock market to collapse anew. Hence, many see this as the 1937 moment, and all eyes are on the actions of Ben Bernanke, student of the Depression....457 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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