Previous credit crunches

[ghotib]

Does anyone know anything much about previous credit squeezes - why they happened, how long they lasted, how they ended?

I know there was a credit squeeze in 1961, because it cost my Dad his job. Anyone either remember it, or studied history and know about it? Does it tell us anything about what to expect for the next couple of years.

Ghoti (the ignorant)

 

[Uncle Festivus]

I think most people are having to compare it with an event that happened sometime in the 1920's/1930's, so a study of that period may help .

 

[ghotib]

I think most people are having to compare it with an event that happened sometime in the 1920's/1930's, so a study of that period may help .

Geez Uncle, can you restrain the irrational exuberance a bit

 

[MRC & Co]

I remember studying these scenarios, but forget practically everything about them now as its been quiet a while!

Werent there more issues related in the 20s in comparison to now?

Now, we have a booming China/India, something buoying commodities lately (along with safe havens from other areas) and of which will help global economies recover as they continue to grow (albeit at falling rates). For this reason I see Australia as one of the fundamentally safest places to invest in the LR, though as our AUD falls down the track, I wont like to see inflation.

The credit crunch is the biggest issue here and only time I remember a similar issue (in as many aspects) hitting was the Asian economic crisis in the late 90s I beleive. Though, stagflation has now become a HUGE problem as I thought it would (I think I also remember you Uncle predicting the same thing). Only the invisible hand can solve this now, if Ben would just let a bottom establish.

What a mess! This is going to take a couple years to clean itself out now I beleive!

 

[Uncle Festivus]

Geez Uncle, can you restrain the irrational exuberance a bit

Um.. ok...

Mortimer Zuckerman, co-founder of Boston Properties Inc., the largest U.S. office real estate investment trust, said the U.S. economy is in a recession and there's no sign of a recovery.

"We are looking at the worst set of macroeconomic conditions since the Great Depression," Zuckerman said in an interview with Bloomberg Television.