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September 20, 2008 at 8:00 PM #273287September 20, 2008 at 8:43 PM #273546Occams RealtorParticipant
EconProf,
I also worry about crowd psychology in the current economic situation. Although this same crowd psychology caused hoarding during the great depression, I see a new component that could speed the process significantly and that is information technology. There are many news sources where stocks can be seen decreasing precipitously, during which commentators or journalists reiterate just how precipitous a drop might be (internet, TV). I imagine during the 1930’s people got their information from newspapers, radio and word of mouth; a much slower process. I wonder if Bernanke is considering this accelerated transfer of information in the timeline for a modern day economic depression.
September 20, 2008 at 8:43 PM #273552Occams RealtorParticipantEconProf,
I also worry about crowd psychology in the current economic situation. Although this same crowd psychology caused hoarding during the great depression, I see a new component that could speed the process significantly and that is information technology. There are many news sources where stocks can be seen decreasing precipitously, during which commentators or journalists reiterate just how precipitous a drop might be (internet, TV). I imagine during the 1930’s people got their information from newspapers, radio and word of mouth; a much slower process. I wonder if Bernanke is considering this accelerated transfer of information in the timeline for a modern day economic depression.
September 20, 2008 at 8:43 PM #273300Occams RealtorParticipantEconProf,
I also worry about crowd psychology in the current economic situation. Although this same crowd psychology caused hoarding during the great depression, I see a new component that could speed the process significantly and that is information technology. There are many news sources where stocks can be seen decreasing precipitously, during which commentators or journalists reiterate just how precipitous a drop might be (internet, TV). I imagine during the 1930’s people got their information from newspapers, radio and word of mouth; a much slower process. I wonder if Bernanke is considering this accelerated transfer of information in the timeline for a modern day economic depression.
September 20, 2008 at 8:43 PM #273594Occams RealtorParticipantEconProf,
I also worry about crowd psychology in the current economic situation. Although this same crowd psychology caused hoarding during the great depression, I see a new component that could speed the process significantly and that is information technology. There are many news sources where stocks can be seen decreasing precipitously, during which commentators or journalists reiterate just how precipitous a drop might be (internet, TV). I imagine during the 1930’s people got their information from newspapers, radio and word of mouth; a much slower process. I wonder if Bernanke is considering this accelerated transfer of information in the timeline for a modern day economic depression.
September 20, 2008 at 8:43 PM #273618Occams RealtorParticipantEconProf,
I also worry about crowd psychology in the current economic situation. Although this same crowd psychology caused hoarding during the great depression, I see a new component that could speed the process significantly and that is information technology. There are many news sources where stocks can be seen decreasing precipitously, during which commentators or journalists reiterate just how precipitous a drop might be (internet, TV). I imagine during the 1930’s people got their information from newspapers, radio and word of mouth; a much slower process. I wonder if Bernanke is considering this accelerated transfer of information in the timeline for a modern day economic depression.
September 20, 2008 at 9:20 PM #273556EconProfParticipantOccams Realtor,
You have a point, and the speed of info transmission along with an alarmist media adds to the volatility.
The many bank panics of the nineteenth century often brought down perfectly good banks. They just did not have the liquidity on hand to meet the bank runs by a panic driven public inflamed by a rumor. The Fed was created in large part to temporarily lend to such a bank to squelch the panic.September 20, 2008 at 9:20 PM #273562EconProfParticipantOccams Realtor,
You have a point, and the speed of info transmission along with an alarmist media adds to the volatility.
The many bank panics of the nineteenth century often brought down perfectly good banks. They just did not have the liquidity on hand to meet the bank runs by a panic driven public inflamed by a rumor. The Fed was created in large part to temporarily lend to such a bank to squelch the panic.September 20, 2008 at 9:20 PM #273311EconProfParticipantOccams Realtor,
You have a point, and the speed of info transmission along with an alarmist media adds to the volatility.
The many bank panics of the nineteenth century often brought down perfectly good banks. They just did not have the liquidity on hand to meet the bank runs by a panic driven public inflamed by a rumor. The Fed was created in large part to temporarily lend to such a bank to squelch the panic.September 20, 2008 at 9:20 PM #273604EconProfParticipantOccams Realtor,
You have a point, and the speed of info transmission along with an alarmist media adds to the volatility.
The many bank panics of the nineteenth century often brought down perfectly good banks. They just did not have the liquidity on hand to meet the bank runs by a panic driven public inflamed by a rumor. The Fed was created in large part to temporarily lend to such a bank to squelch the panic.September 20, 2008 at 9:20 PM #273628EconProfParticipantOccams Realtor,
You have a point, and the speed of info transmission along with an alarmist media adds to the volatility.
The many bank panics of the nineteenth century often brought down perfectly good banks. They just did not have the liquidity on hand to meet the bank runs by a panic driven public inflamed by a rumor. The Fed was created in large part to temporarily lend to such a bank to squelch the panic.September 21, 2008 at 1:02 PM #273525paramountParticipantThis bailout reminds me of the Patriot Act “process” – ram it through quickly (without thorough review/debate) or else there will be dire consequences.
Seems like a very similiar strategy.
Scary…
September 21, 2008 at 1:02 PM #273843paramountParticipantThis bailout reminds me of the Patriot Act “process” – ram it through quickly (without thorough review/debate) or else there will be dire consequences.
Seems like a very similiar strategy.
Scary…
September 21, 2008 at 1:02 PM #273820paramountParticipantThis bailout reminds me of the Patriot Act “process” – ram it through quickly (without thorough review/debate) or else there will be dire consequences.
Seems like a very similiar strategy.
Scary…
September 21, 2008 at 1:02 PM #273776paramountParticipantThis bailout reminds me of the Patriot Act “process” – ram it through quickly (without thorough review/debate) or else there will be dire consequences.
Seems like a very similiar strategy.
Scary…
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