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Wall Street and Good Music
Finding a 'treatment' to combat problems
Alfredo Ascanio (askain)     Print Article 
Published 2008-09-17 13:43 (KST)   
This article is only lightly edited.  <Editor's Note>
Ten years after the end of World War I, the world seemed to be in the best of its moments.

The investment grew, employment also grew and the welfare of the people seemed to improve. However, in October 1929, the New York Stock Exchange had a strong bankruptcy and almost every country began to experience severe economic problems.

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When in March 1929 Herbert Hoover was the new president, it seemed that everything could be improved, but the Federal Reserve decided to raise the interest rate one point and advised banks that did not grant more loans to invest in the stock market.

All these facts gave the alarm among investors and then in October 1929 began producing a sale of assets in the stock market. But on Wednesday, Oct. 23 were sold on Wall Street just 6 million shares at very low prices and during the "black Thursday" the sale of shares was 12 million and the "black Tuesday" Stock Market snapped with a loss of with a loss of $2.4 billion in one week.

The impact was very big. In the country there was more unemployment, many small and medium enterprises closed their doors and the middle class was the most impacted of all these problems.

Today the New York Stock Exchange again had its "black Monday" and almost all global stock markets fell to an average of three to four points. All this began with serious problems of mortgage loans for housing and many people who have been unable to pay its debts with banks.

The large mortgage banks have been declared bankrupt. Today Tuesday of 2008 there is much uncertainty about the U.S. economy and other economies of major countries.

The two potential candidates McCain and Obama have different ideas to solve these problems. The American people do not know what will be the best solution; but Tim Paradis, of AP Business Write, said: "The Fed has cut its target federal funds rate by 3.25 percentage points to its current level of 2 percent over the past year. Many on Wall Street expected the Fed to keep rates steady but there was some hope that the central bank would try to calm uneasy financial markets with a rate cut."

For now people want to forget their own problems. In the year 1929 people took refuge in music to forget the terrible events of bankruptcy and at that time was the Jazz and especially the Swing that served as a "medicine". Today we cannot predict the same thing. Today we do not know what music can help weaken the problems.

For example, a friend who worked for years in the InterAmerican Development Bank (IDB) traveled to Alaska on a cruise with his family to forget the problems. But not all families have money for such luxuries trips.

People who lived the hurricane IKE today have more problems accumulated. The only thing they can do is listen a good a country music or read a good book while everything happens.


Alfredo Ascanio is a professor of economics at Simon Bolivar University in Caracas, Venezuela.
©2008 OhmyNews
Other articles by reporter Alfredo Ascanio

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