Windows Vista Forums

Events are mirroring the Great Depression of 1873

  1. #1
    rive0108's Avatar

    DNPNWO


    Join Date : Sep 2007
    Hampton Roads, Virginia, USA
    Posts : 2,081
    Vista Ultimate X64 SP2
    Local Time: 04:36 PM
    usa us virginia

    Events are mirroring the Great Depression of 1873

    The Depression of 1873 which closely mirrors world-wide events of today was much more severe than the Depression of the 1930's, and lasted Almost six years.

    Those that fail to learn from history, are doomed to repeat it. - Winston Churchill


    The problems had emerged around 1870, starting in Europe. In the Austro-Hungarian Empire, formed in 1867, in the states unified by Prussia into the German empire, and in France, the emperors supported a flowering of new lending institutions that issued mortgages for municipal and residential construction, especially in the capitals of Vienna, Berlin, and Paris. Mortgages were easier to obtain than before, and a building boom commenced. Land values seemed to climb and climb; borrowers ravenously assumed more and more credit, using unbuilt or half-built houses as collateral. The most marvelous spots for sightseers in the three cities today are the magisterial buildings erected in the so-called founder period.

    \But the economic fundamentals were shaky. Wheat exporters from Russia and Central Europe faced a new international competitor who drastically undersold them. The 19th-century version of containers manufactured in China and bound for Wal-Mart consisted of produce from farmers in the American Midwest. They used grain elevators, conveyer belts, and massive steam ships to export trainloads of wheat to abroad. Britain, the biggest importer of wheat, shifted to the cheap stuff quite suddenly around 1871. By 1872 kerosene and manufactured food were rocketing out of America's heartland, undermining rapeseed, flour, and beef prices. The crash came in Central Europe in May 1873, as it became clear that the region's assumptions about continual economic growth were too optimistic. Europeans faced what they came to call the American Commercial Invasion. A new industrial superpower had arrived, one whose low costs threatened European trade and a European way of life.

    As continental banks tumbled, British banks held back their capital, unsure of which institutions were most involved in the mortgage crisis. The cost to borrow money from another bank - the interbank lending rate - reached impossibly high rates. This banking crisis hit the United States in the fall of 1873. Railroad companies tumbled first. They had crafted complex financial instruments that promised a fixed return, though few understood the underlying object that was guaranteed to investors in case of default. (Answer: nothing). The bonds had sold well at first, but they had tumbled after 1871 as investors began to doubt their value, prices weakened, and many railroads took on short-term bank loans to continue laying track. Then, as short-term lending rates skyrocketed across the Atlantic in 1873, the railroads were in trouble. When the railroad financier Jay Cooke proved unable to pay off his debts, the stock market crashed in September, closing hundreds of banks over the next three years. The panic continued for more than four years in the United States and for nearly six years in Europe.

    Source:Read More here

    Last edited by rive0108; 16 Jan 2009 at 07:23 AM.
      My System SpecsSystem Spec

  2.   


  3. #2
    xguntherc's Avatar

    I Click Home To Much
    Join Date : Jan 2008
    Vegas Baby
    Posts : 1,208
    Vista Ultimate x64
    Local Time: 03:36 PM
    usa us nevada

     

    Re: Events are mirroring the Great Depression of 1873

    Yea.. We are in TROUBLE

    But other countries have came close to the Great Depression, and close to what is happening now, some failed and struggled. Like Japan about 10 years back, and some did what we did. but not as fast. They managed out ok.

    We Will see.

    I think sadly that America is on the Down! We are free-falling!
    the 70-80's were the rise of US, and our better Hours. I think we are starting our worse hour and darker days.. thanks Bush.

    lol no jk. It's not all his fault. I guess we can just wait and see.
    but another 667 Drop today in the DOW.. Sadness! There went my Dad's Retirement/(My Will contents.)

      My System SpecsSystem Spec

  4. #3



    Member

    Join Date : Aug 2008
    Posts : 144
    Ultimate 64!!!
    Local Time: 03:36 PM


     

    Re: Events are mirroring the Great Depression of 1873

    Quote Originally Posted by xguntherc View Post
    Yea.. We are in TROUBLE

    But other countries have came close to the Great Depression, and close to what is happening now, some failed and struggled. Like Japan about 10 years back, and some did what we did. but not as fast. They managed out ok.

    We Will see.

    I think sadly that America is on the Down! We are free-falling!
    the 70-80's were the rise of US, and our better Hours. I think we are starting our worse hour and darker days.. thanks Bush.

    lol no jk. It's not all his fault. I guess we can just wait and see.
    but another 667 Drop today in the DOW.. Sadness! There went my Dad's Retirement/(My Will contents.)

    Well I still have faith in America and the stock market. Sure the market fell just a few points over the last few months it will rebound. We go through cycles and this time around its a bad one...

    Money put into the stock market is not lost unless you take it out. I say everything will be back on track within 3 years of course it depends who is running the country... and how they choose to fix problems.

      My System SpecsSystem Spec


Events are mirroring the Great Depression of 1873
Similar Threads
Thread Forum
Online calendar events showing up as Private events? Live Mail
How To Clear Administrative Events Log - Events Viewer Vista General
Are you ready for the 2nd great Depression? Chillout Room
mirroring Vista performance & maintenance
Fire events from Xaml files.. events in Pre compiled Dll's Avalon