Not So Fast

August 24th, 2009

Fed Chairman Ben Bernake said last week, “the prospects for a return to growth in the near term appear good.” Before making big investments in the stock market or big plans for your sales to take off, a little historical perspective might be good to consider. Here are comments from leaders the last time the U.S. faced such challenging economic turmoil (courtesy of Lance Roberts – www.streettalklive.com):

“I see nothing in the present situation that is either menacing or warrants pessimism… I have every confidence that there will be a revival of activity in the spring, and that during this coming year the country will make steady progress.” – Andrew W. Mellon, U.S. Secretary of the Treasury, December 1929

“I am convinced that through these measures we have reestablished confidence.” – Herbert Hoover, December 1929

“[1930 will be] a splendid employment year.” – U.S. Dept. of Labor, New Year’s Forecast, December 1929

“For the immediate future, at least, the outlook (stocks) is bright.” – Irving Fisher, Ph.D. in Economics, in early 1930

“…there are indications that the severest phase of the recession is over…” – Harvard Economic Society,  January 1930

“There is nothing in the situation to be disturbed about.” – Secretary of the Treasury Andrew Mellon, February 1930

“The spring of 1930 marks the end of a period of grave concern…American business is steadily coming back to a normal level of prosperity.” – Julius Barnes, head of Hoover’s National Business Survey Conference, March 1930

“While the crash only took place six months ago, I am convinced we have now passed through the worst — and with continued unity of effort we shall rapidly recover. There has been no significant bank or industrial failure. That danger, too, is safely behind us.” – President Herbert Hoover, May 1930

“Gentleman, you have come sixty days too late. The depression is over.” – President Hoover, responding to a delegation requesting a public works program to help speed the recovery, June 1930

“… the present depression has about spent its force…” – Harvard Economic Society, August 1930

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