There's no denying that a collapse in stock prices today would pose serious macroeconomic challenges for the United States. Consumer spending would slow, and the U.S. economy would become less of a magnet for foreign investors. Economic growth, which in any case has recently been at unsustainable levels, would decline somewhat. History proves, however, that a smart central bank can protect the economy and the financial sector from the nastier side effects of a stock market collapse.
Ben BernankeRelated topics
bank case central collapse consumer decline denying economy foreign growth history less magnet market nasty pose sector side slow smart somewhat spending stock today states effectsRelated quotes
Side by side ... the British and French peoples have advanced to rescue ... mankind from the foulest and most soul-destroying tyranny which has ever darkened and stained the pages of history. Behind them ... gather a group of shattered States and bludgeoned races: the Czechs, the Poles, the Norwegians, the Danes, the Dutch, the Belgians -- upon all of whom the long night of barbarism will descend, unbroken even by a star of hope, unless we conquer, as conquer we must; as conquer we shall.
Winston Churchill
The nude gains its enduring value from the fact that it reconciles several contrary states. It takes the most sensual and immediately interesting object, the human body, and puts it out of reach of time and desire; it takes the most purely rational concept of which mankind is capable, mathematical order, and makes it a delight to the senses; and it takes the vague fears of the unknown and sweetens them by showing that the gods are like men and may be worshiped for their life-giving beauty rather than their death-dealing powers.
Kenneth Clark
The history of medicine proves that in so far as man seeks to know himself and face his whole nature, he has become free from bewildered fear, despondent shame, or arrant hypocrisy. As long as sex is dealt with in the current confusion of ignorance and sophistication, denial and indulgence, suppression and stimulation, punishment and exploitation, secrecy and display, it will be associated with a duplicity and indecency that lead neither to intellectual honesty nor human dignity.
Alfred Kinsey
The graph does show one tremendous rise and collapse which stands out starkly from all the other fluctuations. This is commonly called the "new era" stock market of 1927-33. The striking feature of this phenomenon was that the new era existed solely in the minds of market speculators. The whole episode, in retrospect, now seems to have been one of those rare manifestations of mass financial madness which we used to study in our history books under the titles of "the South Sea Bubble", "the Mississippi Bubble" and so on.
Benjamin Graham
[T]here could be no guarantee in a free market that the interests of race or state as Hitler defined them would take priority over the interests of businessmen or consumers. After 1933 the role of the state in regulating and directing economic life increased sharply, first in order to encourage economic revival, then to divert economic resources to the growth of German military power... [which] led, in an unplanned, incremental way, to the establishment of a kind of command economy.
Richard Overy
