Fast money, that is what a large percentage of Investors want. We are in the midst of the largest bull market ever, and the greatest financial expansion in history. What goes up must come down, right? This fundamental rule seems to not apply in today’s fast paced economy. This remarkable wealth-making machine seems unstoppable, but is it? One cannot help but be reminded of the twenties and similarities between these two decades. Investor Sentiment is at all time highs. Interest rates are low, and all seems fine. If you take a look at financial history it is clear that the business cycle flows in and out of trends. The market must correct itself. With speculation nearing all time highs, and confidence outweighing fundamentals the next big drop could be closer than most like to admit.The Roaring Twenties was a time of great economical growth. Ideas, entrepreneurs, and capital abounded. Skyscrapers were being built, new revolutionary processes were being discovered, and America’s population thrived. Wall Street was on the move as well, with record breaking performances year after year. The whole Nation in general was seeing increased productivity. The nations total realized income rose from 74.3 billion in 1923, to 89 billion in 1929. (Alexander 1) Manufacturing output more than doubled in the decade with the increased implementation of the assembly line. Advances were seen everywhere in 1920. The first transcontinental airline route, first news radio broadcast in Pittsburgh on KDKA, and the transition to city life. In 1927 Charles Lindhberg’s first flight across the Atlantic and the first “talkie” motion picture continued to put America far ahead of foreign powers. (Kidder 1)Then suddenly in 1929, the economy began to crumble following the collapse of the stock market in October. Businesses went bankrupt, banks went under, and unemployment surged. What were the causes of this great depre...
