Richard Duncan and Macro Economics
Money Tree Investing
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The Roaring Twenties
The roaring twenties were a direct result of world war two and the breakdown of the gold standard. All the credit creation that was created during the war sparked off the roaring twenties. But in 19 30, all that credit couldn't be repaid and that year we saw the first wave of bank failures. And by 19 33, a third of all the banks in the us. Had gone under or had to be merged. Policy makers really didn't know what to do. They believed in laze fair capitalism. So they stood back and allowed market forces to work and allowed the market to clear. Market forces worked. But unfortunately, market forces settled at a the economy contracted by forty five % in nominal
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