Friday, January 25, 2008

The 10-year trends before the Great Depression

Does history repeat itself?

Here are some trends of the Roaring 20's before the Great Depression.

1. New Federal Reserve in 1914
2. Post World War I Inflationary Pressures
3. American Protectionism
4. 10-year boom with a 34% increase in GDP over nine years and a 200% increase in capital investment infrastructure spending
5. Residential and Commercial Real Estate Boom
6. 10-year bull market, investment speculation and investing on margin
7. Severe Recession in 1920 followed by a nine year bull market
8. Relatively low interest rates

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