Stock Markets Exposed
Benefits of the Stock Market Crash?
Were there any benefits of the stock market crash of 1929? or were there any benefits from the Great Depression?
Public Comments
- well...there would be a huge price correction on the open market.....
- Everything has benefits. The stock market crash resulted in the securities acts, and further regulation of the market. If that didn't happen, then we probably would not have the investor confidence necessary to have made us the #1 super power.
- This is widely debated: http://mutualfunds.about.com/od/1929marketcrash/1929_Stock_Market_Crash.htm http://en.wikipedia.org/wiki/Wall_Street_Crash_of_1929 http://eh.net/encyclopedia/article/Bierman.Crash There is a great cleansing with any great crash or depression and reversal of fortunes. Some people became very rich from the opportunities created by low prices, and many things for sale. The weak and foolish and unprepared were wiped out, and stronger hands took over. I don't think more regulatory agencies are a benefit, or a good thing. The 5% margin rule was insane, so stricter rules would be considered beneficial to long-term stability. Idiots in gov't that did nothing at a critical time was the ultimate cause of the depth of the crash and resulting depression. Putting more idiots into more regulatory agencies may not change the result. The gov't answer is always more gov't, so maybe your other answerer works there.
