* By February, the Federal Reserve has cut the prime interest rate from 6 to 4 percent. Expands the money supply with a major purchase of U.S. securities. However, for the next year and a half, the Fed will add very little money to the shrinking economy. (At no time will it actually pull money out of the system.) Treasury Secretary Andrew Mellon announces that the Fed will stand by as the market works itself out: "Liquidate labor, liquidate stocks, liquidate real estate… values will be adjusted, and enterprising people will pick up the wreck from less-competent people." (More)
* The Smoot-Hawley Tariff passes on June 17. With imports forming only 6 percent of the GNP, the 40 percent tariffs work out to an effective tax of only 2.4 percent per citizen. Even this is compensated for by the fact that American businesses are no longer investing in Europe, but keeping their money stateside. The consensus of modern economists is that the tariff made only a minor contribution to the Great Depression in the U.S., but a major one in Europe. (More)
* The first bank panic occurs later this year; a public run on banks results in a wave of bankruptcies. Bank failures and deposit losses are responsible for the contracting money supply.
* Supreme Court rules that the monopoly U.S. Steel does not violate anti-trust laws as long as competition exists, no matter how negligible.
* Democrats gain in Congressional elections, but still do not have a majority.
* The GNP falls 9.4 percent from the year before. The unemployment rate climbs from 3.2 to 8.7 percent.
1933 Unemployment rises slightly, to 24.9 percent.
U.S. Real GNP Gross National Product Forecast
Billions Chained 2000 Dollars. Annual Rate Seasonally Adjusted.
Month Date Forecast
Correct +/- 80%
0 Feb 2009 -4,167.0 0 0
1 Mar 2009 -4,760 501 827
2 Apr 2009 -5,253 616 1,018
3 May 2009 -5,632 696 1,150
4 Jun 2009 -5,781 759 1,254
5 Jul 2009 -5,807 811 1,341
6 Aug 2009 -5,683 857 1,416
7 Sep 2009 -5,470 897 1,483
8 Oct 2009 -5,173 934 1,544
Updated Monday, March 09, 2009
over 11% some statesThe state-by-state readings come just days after the government reported nationwide unemployment of 8.1%.
http://money.cnn.com/2009/03/11/news/ec ... mployment/
I think the Government and others are being too optimistic on the real state of the union.
You would expect this officially because if they admit we are in a Depression it makes it worse.
The world is in a Depression not just the USA.
I see the signs with more and more layoffs happening and Financial failures,we need a good reorganization of the way we conduct business.
It seems the Days of CEO's with the Golden do next to nothing job with huge pay is finally over.
CEO's have taken credit forever for doing one thing, after people have worked for hours/months/days on research and strategy these CEO's think for 5 minutes and say yes or no. And a CEO is worth how much to do this? What I find amusing is that in some cases these CEO go from Pepsi to something like Chrysler to something like Mondo SHoes and so on, things that are not related, I see them like high paid Con men who convince the Boards of these companies they can make more money for them and the stock holders.
This is done is several ways, Lay offs, mergers, government cash, and maybe a few times innovation.