Now... ladies and gents - this is not a video about 2019 and we are not making any political statements. We know that some of you love making parallels between the present day and historical events. Although we can learn from history, try to remember that the circumstances were very different. Others among you feel it appropriate to extend partisan conflicts backwards and make out our videos, or events in the videos as partisan statements or issues. First of all we simply don't do that, we just relate the events and the circumstances as factually as possible with the best possible sources. Second of all it is pointless to look for the 2019 partisan left/right divide according to party lines in events that happened 90 years ago. There's just no comparison as both reality, and political parties have gone through so much change that the members of the same party, from today and then would probably disagree so vehemently on so many points the they would not even understand each other. So please, try your best to not go off on partisan rants, as it distracts form the actual historical issues at hand, and do respect our rules: STAY CIVIL AND POLITE we will delete any comments with personal insults, or attacks. AVOID PARTISAN POLITICS AS FAR AS YOU CAN we reserve the right to cut off vitriolic debates. HATE SPEECH IN ANY DIRECTION will lead to a ban. RACISM, XENOPHOBIA, OR SLAMMING OF MINORITIES will lead to an immediate ban. PARTISAN REVISIONISM, ESPECIALLY HOLOCAUST AND HOLODOMOR DENIAL will lead to an immediate ban.
I love how Indy rises to a thundering crescendo at the end of every video, like a building wave that finally crashes into the shore and gently recedes.
I love the drink at the end too! To the right--I see the first time I've ever seen mention of Pilsudski anywhere. I believe Hitler and Pilsudski had excellent relations but Pilsudski died in 1935 and his successors drifted into the French orbit.
This lays out just how the Crash happened really well, rather than just letting "ECONOMY FELL LOL" take its place like most other 1920s history might try for expediency's sake. I'll leave TimeGhost money for a round before I throw myself out of my Wall Street office.
I put my dough in Wall Street in the spring of twenty nine and soon my broker told me a million bucks were mine. I left my dough in Wall Street, I hadn't got a care... Yes I put my dough in Wall Street now I sell my apples there!
I spent years as a Social Worker with the elderly. I can attest to Indy's comment that the results of the crash and ensuing depression affected generations to come. Most of my clients lived as if the next depression was just around the corner having lived and suffered through these events. Many of my clients had spent some time in orphanages because their parents were jobless and couldn't afford to feed them. Often, only a nursing baby was kept at home. Luckily most of these children went home when finances improved but their sense of abandonment was often still with them in the 2000's! My own parents would never think of investing in the stock market even in the 60's because of having lived in the depression. I love all your series and watch them all-often more than once! Keep up the good work! Skol!
This video was awesome! It explains a lot about how the U.S got into one of the most iconic "disasters" in economic history. I'm eager to watch the next two episodes. You guys are doing a marvelous job!
That ending statement, man summed up the danger to come from desperate peoples so powerfully and succinctly. An episode I have been waiting for, I must admit I know little about the crash of 1929 but very well explained Indy and team. Fantastic and informative work as always.
There is a great PBS series to know more! It was a lot more brutal, and crisis filled than the three page overview in our History 9 books! ruclips.net/video/bCEJ65H_1XE/видео.html
@@charliehoran3680 he might not have but just look at wages over the last 40 yr they have not kept up with inflation 90% of us live on hr wage not salary the only ppl who have seen payday get better are those in management Salaried ppl and of course the top 0.001% who have seem their wealth go up over 10,000%
I think it was John Wanamaker that famously said "When my shoeshine boy was giving me stock advice, I knew it was time to sell" America Sneezed, Britain caught the Flu, and Germany almost died of Pneumonia. Talking about affecting America for generations, my grandmother was a child of the depression and when she died in 1992 we went through her things and found almost $1000 in "egg" money socked away in drawers, coffee tins etc. It wasn't until my Grandfather passed away ten years later that we found almost $500 more in money she had hidden around the house. All because she trusted banks...mostly, but she wanted to just be on the safe side...just in case.
Both my grandparents (grandmother passed December 2018) grew up in the Depression. Both would comment on "Depression Food" and how life was like through it.
Wolf Hammer it wasn't the crash that was the problem, there had been crashes before that hadn't caused such serious economic woes. Itvwas the loss of confidence in the banking system, including the runs on the banks, that caused the worldwide depression.
@CommandoDude ...because the guns and butter policy of fighting the Vietnam War and building the Great Society was an act of economic "de-regulation"...
He speculated cat videos would be the persistent profitable wave of the future and went all in with his savings and lost big when the market crashed. How will he afford pervitin now?
The best analysis I've ever seen of the 1929 financial crisis, thanks for the awesome quality of your content guys, we enjoy every minute of your videos, keep'em coming.. 👏👏👏👏 And if anyone from RUclips is monitoring the comments, get this to your bosses : " Stop Hindering any positive effort that can help elevating people's consciousness and intellect, you're losing your credibility by demonetizing, every interesting channel with serious content" ... 😒😒😒😒
Would love to see Indy narrative the 2000s and 2010s sometime in the future. Of course, we need some time to let history present itself , but I would be very interested, as always!
I'm glad that you are making these videos for the younger set, as folks my age (I am 60) learned it firsthand from our parents, (who fought in WWII), aunts and uncles (my parent's older siblings lived through the Prohibition and saw what happened firsthand.) The younger generations won't have that first hand recognition we had. Thank you for this!
"Margin trading" is literally borrowing money to gamble. If you are comfortable borrowing money from a loan shark to play that craps game in the alley, then "margin trading" is for you.
@@veeli1106: One difference is a margin can be called early, depending on the market. Whereas a real estate mortgage is normally controlled by a contract with monthly payments. A mortgage is *much* more predictable.
"Somebody told us Wall Street fell, But we was so poor that we couldn't tell. Cotton was short and the weeds were tall but Mr. Roosevelt was gonna save us all."
@@MrTilldaddy 'Song of the South', I don't know why but something tells me that song is rascist. PS I don't think all southeners are rascist just to clear that up, its just that the title is really, really familiar
You explain everything with a great accuracy and knowledge. I find your channel greatly useful as a source of accurate information. Greetings from Poland.
That's an imperial Russian stove/radiator behind him. I saw several of them in St. Petersburg. They had no openings into the room so it didn't get smoky. Servants tended the fires from the adjoining service corridors.
Thank you and your team for continuing to give all of us such excellent and informative content. Boo to you, RUclips for trying to financially strangle such wonderful and important historical knowledge.
This series keeps getting better! I love the inter-war years, it's just such a fascinating time. This is now probably one of my favorite episodes probably up there with Greco -Turkish War episode.
Suddenly I feel we did not cover this subject enough in high school. Same as we did not cover WW2 nearly enough, and that was a point of passion for my history teacher.
Why so shocked? The money aristocracy will always survive. They occasionally might lose on the side of the road, but money goes where money is and then stays there.
Yep, goes to show you. NEVER put a lot of your money into even legit stuff with the reasonable promise of quick bucks - especially if you're in the lowest tax bracket. Still, even the 1% would be wise to heed this advice - as the October crash left a lot of Wall St brokers "begging with a cup", selling apples, or (tragically) dead from suicide.
This is well produced. Love the aesthetic touches: Art Deco accessories, de Stijl graphics, Mr. Neidell's color-coordinated wardrobe. It's sylish, informative, tightly scripted and energetically presented. Props.
@Mial isus Looks like incandescents to me, but at a distance the newer filament style LEDs can be hard to distinguish. They're under a glass dome (which is a good way to cook the electronics in LED bulbs) so no direct touchy... and it's not like generations haven't been able to deal with incandescents.😀
This is a great news-history Chanel. I am so impressed! I even am impressed by the narrators’ dress and the backdrop props so indicative of the times the program depicts. A wonderful channel providing information we didn’t clearly get in school!
My theory on how the panic set in: Time travelers knew when the bubble was going to collapse and sold their stock, thus causing the depression they knew was coming.
Are you sure Skynet didn’t send economic terminators to purchase a ridiculous amount of stock and sell it all at once to prevent the birth of John Conor?
Thank you for pulling this work together. I think we are in an era when we can create true synthesis and integration of history. The informational resources are there and we have a more educated and socially aware population. The events from ''The Time between 2 Wars'' is fundamental to describe the prelude of the rise of the US as an economic power, amongst other merits. Your synthesis is by far the best I have found for a high level view. It can serve very well someone who didn't spend four years getting a degree in economics, but wants a gain a fair understanding and a frame of reference to advance his knowledge in other related areas.
Man time doesn't change much does it? I'm loving these videos, found you guys recently. I am Canadian, so only really learned this stuff as very removed thing. I was always more interested in medieval history growing up, this is new and super interesting, sounds like a large scale version of the comics bust in the 90's.
Damn this was an especially great episode. Is there any chance that you will talk about former Fed Chair, Ben Bernanke's assessment of the Feds role in the depression from his remarks at the University of Chicago in 2002? Would be great to see you going into further detail about economics during the great depression, for example on how different countries left the gold standard to have greater power over monetary policy, which ultimately helped their recovery. Another great thing to look at would be how there was great debate about this, for example on how Keynes supported protectionism in order to devalue the sterling because he thought that it would be politically unfeasible to get Britain off the gold standard
@@flamefusion8963 you mean when the fed had limited control over monetary policy? When they were restricted by the gold standard? If you want a good example of what would happen without a central bank, look at the comparison between New South Wales and Victoria. In 1846 the British government began granting the Australian colonies various rights to self-government, among those rights was control over banking. By 1862, the British government had fully ceded all banking responsibilities to the Australian colonial governments(except Western Australia), which decided to let the market be free. Consequently, there was no central bank and very few banking regulations. There were no price controls, capital controls, debt regulations, deposit guarantees, and the whole system was based on gold. Thus between the 1860s and the 1890s, Australia was essentially an experiment in Austrian free banking. According to Austrian economics, a credit boom should not be possible under these conditions. Without a central bank artificially depressing interest rates, private banks should accurately set rates according to market conditions. Malinvestment should be averted, and no great credit boom and bust cycle should appear. Yet that's the opposite of what actually happened. Australian banks began lending to real estate speculators. Then many companies specializing in highly speculative stock market and property investments appeared, and the private unregulated Australian banks were only too happy to lend to them as well. By the 1890, the rampant credit inflation had burst. Between 1891 and 1892, more than forty Australian banks failed. By early 1893, the Commercial Bank of Australia, the largest bank in the country, had also failed. What happened afterwards deals yet another blow to the credibility of Austrian economics. At the time, there were two large centers of the Australian economy. There was the Victoria colony, and there was the New South Wales colony. Both colonies were self-governed and the two colonial governments responded very differently to the banking crisis. In Victoria, the government did nothing. It chose not to intervene in the markets and as a result the crisis deepened. Victorian banks were toppling over like dominos and its economy went into a deep depression. Real GDP in Australia fell by more than 12% in 1892 and another 5.5% in 1893 due to the banking crisis in Victoria. By contrast, the government of New South Wales abandoned its previous lassize-faire approach and decisively intervened. It declared the bank notes of the major NSW banks to be legal government tender and announced it will act as a lender of last resort. As a result of these actions, the banking crisis in NSW was over in a week and it largely escaped the economic depression. How do you reconcile the Australian free banking era with Austrian theories? A massive credit boom and bust cycle developed despite the absence of central bank meddling. And in the aftermath, decisive government intervention prevented an economic depression in NSW while a lack of government action in Victoria led to a deep depression. In fact, the 1890s depression in Australia was more severe than the Great Depression was for Australia. Free banking had managed to produce an economic depression worse than the Great Depression! Which is generally considered the worst example of central bank mismanagement. Now fast forward to modern day. Modern Australia has a central bank like any other. And like the US Federal Reserve, the RBA set an inflation goal of 2-3% and uses all the tools of modern banking to help achieve that goal. Thus according to ABCT, Australia should be subject to a cycle of credit booms and bust just like everybody else when its central bank misprices credit. There is just one little problem with that. Australia hasn't had a real economic recession in 25 years. Its last recession ended in 1991 and since then there has been nothing but growth with brief periods of slowdowns(but not recessions) in-between. Australia even escaped the 2008 global recession. How is this possible? Are Australian central bankers geniuses who never sets the interest rate too low or too high? Or are Austrians largely full of shit?
It may not seem like it , but this is the most informative video i've seen on the channel. Is very few historians even vaunted ones Actually break down step by step what happened during the crash.
One of the things that don't get talked about a lot is that not only markets fly high without productivity, but sometimes markets break despite high productivity. I actually believe this has been used in the past by the US near foreign elections to help elect their candidate.
Yet another great episode. You people are amazing. Been watching the Great War since 2015 (or should I say 1915?) and I am watching Between Two Wars and World War II since their respective "day one ". Godspeed, you magnificent bastards. Hope the issue with RUclips will be soon resolved.
Awesome Job guys, Keep up the great historical content. I really love the "calm before the storm" narratives, With the benefit of hindsight it's quite fascinating to look at the time JUST before the big historical events, to get inside peoples heads. The people who woke up the morning of June 28, 1914 had no clue that an event would take place in Sarajevo that would plunge the would into chaos that would shatter the very make up of Europe and the world in general, i'd say even in the following weeks people had no clue what would become of it. This gives me that same feeling and you did a wonderful job of getting into the minds of people just before the crash. The fact that people were so excited and had just reckless optimism is just fascinating. The quote from Hoover was especially enlightening, most people seemed to think that they had discovered the solution to poverty. I mean that quote in and of itself is just so ominous know what was to come. You also did a great job of showing the scope the the problem and showing that once this house of cards got built there really wasn't anyway to fix it without causing the very crash that they wanted to prevent. It became a problem where the only solution was to let it crumble. 9:28 I was waiting to see what was the event was that finally caused the panic, Kind of disappointed that we still don't really know what caused it but once it started it just snowballed.
At that point the senate created a committee lead by top economist John Keneth Galbreith to make a report on whether a new crash was imminent. The committee concluded that there was not such a risk in 1954, as the financial system and its drivers were completely different than those of 1929. Galbreith summarized the conclusions and evidence of its survey in a book: "The great crash 1929". A true masterpiece!
Something was already going on in the stock market crash. My grandmother told me that the Sunday night before the "crash", people we coming into the church service to get people to go outside where they were trying to sell them stocks ("unload"?). They were not in the market at all, but my other grandfather was heavily into futures and lost everything. Fortunately their house was paid off.
I hope Indy talks about how crime sky rocketed in the 30s and how there were celebrity criminals like Dillinger, Bonnie and Clyde, and baby face Nelson.
Discussing the Fed from this time is difficult to the extent that even now we can't clearly say "loose money policy" or "tight money policy" for the 1929-35 period. Wrapped up in that is the death of Benjamin Strong, chairman of the NY Fed Reserve in 1928. He had basically been leading the system since 1914 and after his death there were many opinions and a bit of a power vacuum.
Oh boy, now I am looking forward to the rest of the series and what you guys have to say about FDR and the New Deal, because there is going to be a HUGE debate whenever or not the New Deal and FDR´s politics where good or not, to this day people are fighting over whenever or not the New Deal was a success or not and if the US needs another New Deal.
Wow! For historians you really have good understand of how economic work. Perfect!It is the same today, it is just that today they know how to keep the balloon in the air longer. How long can they do it?
It is imperative to note the role of the Fed in starting and fuelling the bubble. Hoover's protestations were just on Stock market loans , however he was for a broader credit expansion. They thought they could expand credit exactly where they want it to. A folly still present among policy makers.
I'm curious, did the financial crisis hit the Soviet Union, and if it did how? If not did the Soviet Union take advantage,how and did they use this advantage to rebuild the country after the civil war? Long time fan since the 4th episode of The Great War, you guys are awesome.
The Soviet economy grew under unheeded during the depression, if official figures are to be trusted. The financial sector in the Soviet union was heavily regulated by the government so there wasn't a bubble to be pricked by the crash. Of course, you can bet everything and more to the Communist propaganda to blast propaganda about it.
In a short answer no. They where politically and economically isolated since day one. This shielded them for almost the entire shock of the fall, however the recovering Soviet daily life was an outcome of peace and state effort, rather then outside investment. This 'recovery' is only marginal, as when the entire world wants your country to stave to death, your gains are going to be trivial.
George Gabby Haze started out as Hop a long Cassidy's side kick. Made his fortune in the stock market, retired early. Lost it all in the crash. Went back to westerns as Roy Rogers side kick. Classic case of his loss our gain.
![Ice On My Teeth - ATEEZ エイティーズ 에이티즈 [Music Bank] | KBS WORLD TV 241115](http://i.ytimg.com/vi/c-n92OgbbwA/mqdefault.jpg)
Now... ladies and gents - this is not a video about 2019 and we are not making any political statements. We know that some of you love making parallels between the present day and historical events. Although we can learn from history, try to remember that the circumstances were very different. Others among you feel it appropriate to extend partisan conflicts backwards and make out our videos, or events in the videos as partisan statements or issues. First of all we simply don't do that, we just relate the events and the circumstances as factually as possible with the best possible sources. Second of all it is pointless to look for the 2019 partisan left/right divide according to party lines in events that happened 90 years ago. There's just no comparison as both reality, and political parties have gone through so much change that the members of the same party, from today and then would probably disagree so vehemently on so many points the they would not even understand each other. So please, try your best to not go off on partisan rants, as it distracts form the actual historical issues at hand, and do respect our rules:
STAY CIVIL AND POLITE we will delete any comments with personal insults, or attacks.
AVOID PARTISAN POLITICS AS FAR AS YOU CAN we reserve the right to cut off vitriolic debates.
HATE SPEECH IN ANY DIRECTION will lead to a ban.
RACISM, XENOPHOBIA, OR SLAMMING OF MINORITIES will lead to an immediate ban.
PARTISAN REVISIONISM, ESPECIALLY HOLOCAUST AND HOLODOMOR DENIAL will lead to an immediate ban.
Fortnite dance on the American economy when this series is over please
Where are the cats?? I came for the cats.... 🐈🤷
TimeGhost History sabaton should make a song about this it would be interesting to hear
Moar cats on vacuum cleaners!
Wait until the hard Brexit. The Great Recession of 2020.
17th Century Dutchman: Tulips will always hold their value
🌷🌷🌷🌷🌷🌷
21st century banks: "Subprime mortgages? Seems legit. What could possibly ever go wrong?"
I'll gladly trade my house for that beautiful tulip bulb. I can sell it tomorrow and buy two houses.
18th century Englishman: Go south, and prosper **V**
That was a fun time back then
I love how Indy rises to a thundering crescendo at the end of every video, like a building wave that finally crashes into the shore and gently recedes.
Not dissimilar to Hitler's oratorical technique, but this is where the comparison ends.
@@morningstar9233 well they both breathe air... coincidence? Yes most likely
@@philip8498 kids it is old trick speech makers have been using it for millennium
I love the drink at the end too! To the right--I see the first time I've ever seen mention of Pilsudski anywhere. I believe Hitler and Pilsudski had excellent relations but Pilsudski died in 1935 and his successors drifted into the French orbit.
Al Capone warned all his employees to stay away from the stock market. He said it was a racket.
I guess a hustler can always spot another one.
The Be Sharp My thoughts exactly, a gangster can easily see his own business.
shows you who the real gangsters are
@@johndoily9407 The gansters?
Good ol' Al... ...what a guy!
This lays out just how the Crash happened really well, rather than just letting "ECONOMY FELL LOL" take its place like most other 1920s history might try for expediency's sake.
I'll leave TimeGhost money for a round before I throw myself out of my Wall Street office.
Thank you, but keep that window closed...
@@TimeGhost do they still open I thought they welded them all shut in 1930
When Black Monday hits in Kaiserreich.
Mien Gott!
oui Oui *OUI*
Wott I’m not supposed to give my opinion but that’s bad
Right
Nah we know where this video series is heading.... Second American Civil war
Up the internationale they do not suffer from these capitalist economic swings
I put my dough in Wall Street
in the spring of twenty nine
and soon my broker told me
a million bucks were mine.
I left my dough in Wall Street,
I hadn't got a care...
Yes I put my dough in Wall Street
now I sell my apples there!
I am disappointed by the lack of cats on vacuum cleaners in this video.
Keep up the amazing work!
I spent years as a Social Worker with the elderly. I can attest to Indy's comment that the results of the crash and ensuing depression affected generations to come. Most of my clients lived as if the next depression was just around the corner having lived and suffered through these events. Many of my clients had spent some time in orphanages because their parents were jobless and couldn't afford to feed them. Often, only a nursing baby was kept at home. Luckily most of these children went home when finances improved but their sense of abandonment was often still with them in the 2000's! My own parents would never think of investing in the stock market even in the 60's because of having lived in the depression. I love all your series and watch them all-often more than once! Keep up the good work! Skol!
This video was awesome! It explains a lot about how the U.S got into one of the most iconic "disasters" in economic history. I'm eager to watch the next two episodes. You guys are doing a marvelous job!
My hopes for this not being demonized are high as the stock market,but I know it’ll crash😪
Demonized and/or demonitized?
@@TheCimbrianBull: LOL
@@TheCimbrianBull implying RUclips didn't do both
@TheCimbrianBull demonetized
It's weird that this gets demonetised. Why?
That ending statement, man summed up the danger to come from desperate peoples so powerfully and succinctly.
An episode I have been waiting for, I must admit I know little about the crash of 1929 but very well explained Indy and team. Fantastic and informative work as always.
There is a great PBS series to know more! It was a lot more brutal, and crisis filled than the three page overview in our History 9 books!
ruclips.net/video/bCEJ65H_1XE/видео.html
My great Uncle was a banker during this time and lost his job and got hired by the IRS
USSChicago1943 that’s pretty cool did he ever tell you about his experiences during the depression
Everybody in every generation- "boom and bust is no more"
History - uh huh. Hold my beer
We have improved! We managed to cut out boom for 90+% of people already.
Bill Miller interesting any evidence for that?
@@charliehoran3680 he might not have but just look at wages over the last 40 yr they have not kept up with inflation
90% of us live on hr wage not salary
the only ppl who have seen payday get better are those in management Salaried ppl
and of course the top 0.001% who have seem their wealth go up over 10,000%
@@charliehoran3680Replying to a comment from 4 years ago, but... most people never recovered from 2008.
*small hat people "oy vey hold my mashekels"
I think it was John Wanamaker that famously said "When my shoeshine boy was giving me stock advice, I knew it was time to sell" America Sneezed, Britain caught the Flu, and Germany almost died of Pneumonia. Talking about affecting America for generations, my grandmother was a child of the depression and when she died in 1992 we went through her things and found almost $1000 in "egg" money socked away in drawers, coffee tins etc. It wasn't until my Grandfather passed away ten years later that we found almost $500 more in money she had hidden around the house. All because she trusted banks...mostly, but she wanted to just be on the safe side...just in case.
Both my grandparents (grandmother passed December 2018) grew up in the Depression. Both would comment on "Depression Food" and how life was like through it.
I thought that quote came from Joseph Kennedy. But I'm not sure, I have heard that he started selling short just before the crash.
Wolf Hammer it wasn't the crash that was the problem, there had been crashes before that hadn't caused such serious economic woes. Itvwas the loss of confidence in the banking system, including the runs on the banks, that caused the worldwide depression.
@CommandoDude ...because the guns and butter policy of fighting the Vietnam War and building the Great Society was an act of economic "de-regulation"...
@@veeli1106 The boomers didn't do that, the boomers grew up in that
This is what happens when the economy runs on speculation and emotions! A.k.a living in a fantasy land!!!
The Fed*
The speculation was fueled by increased credit by the Federal Reserve.
@@flamefusion8963 it all feeds itself my man!
No it was a money grab by the elite and they did succeed.
@@savedbychristsavedbygrace2049 and have 7 time since twice in the last 6 yr
But you promised cat videos. :-(
We've been tricked, backstabbed, and quite possibly, bamboozled
Swineminator I got the picture... Indy talking about darkness of humanity while stroking a cat on his lap... birth of best villain perhaps?
World War Two uploaded one yesterday
He speculated cat videos would be the persistent profitable wave of the future and went all in with his savings and lost big when the market crashed. How will he afford pervitin now?
@@Arbiter099
You mean Puurvitin! Meow!
Wow! That speech at the end was fantastic.
The best analysis I've ever seen of the 1929 financial crisis, thanks for the awesome quality of your content guys, we enjoy every minute of your videos, keep'em coming.. 👏👏👏👏
And if anyone from RUclips is monitoring the comments, get this to your bosses : " Stop Hindering any positive effort that can help elevating people's consciousness and intellect, you're losing your credibility by demonetizing, every interesting channel with serious content" ... 😒😒😒😒
Mehdi BOUABID big up
Would love to see Indy narrative the 2000s and 2010s sometime in the future. Of course, we need some time to let history present itself , but I would be very interested, as always!
Might as well add the 2020s in there as well. So far they've been absolutely insane. 🤪
I'm glad that you are making these videos for the younger set, as folks my age (I am 60) learned it firsthand from our parents, (who fought in WWII), aunts and uncles (my parent's older siblings lived through the Prohibition and saw what happened firsthand.) The younger generations won't have that first hand recognition we had. Thank you for this!
Bubble economies eventually crash, whether based on real estate prices or "margin trading."
"Margin trading" is literally borrowing money to gamble. If you are comfortable borrowing money from a loan shark to play that craps game in the alley, then "margin trading" is for you.
@@lesliefranklin1870 But its not gambling! The stocks only go up!
Buying real estate with a mortgage is a form of margin trading.
@@derrickthewhite1 In such a low interest rate environment, it's pretty much true.
@@veeli1106: One difference is a margin can be called early, depending on the market. Whereas a real estate mortgage is normally controlled by a contract with monthly payments. A mortgage is *much* more predictable.
"Somebody told us Wall Street fell,
But we was so poor that we couldn't tell.
Cotton was short and the weeds were tall
but Mr. Roosevelt was gonna save us all."
Spoiler:
he didn't
Is that a political slogan?
@@aaroncabatingan5238 it is from a song called "Song of the South" by Alabama.
@@MrTilldaddy 'Song of the South', I don't know why but something tells me that song is rascist.
PS I don't think all southeners are rascist just to clear that up, its just that the title is really, really familiar
@@aaroncabatingan5238 the song "Song of the South" has nothing to do with the movie "Song of the South"
You explain everything with a great accuracy and knowledge. I find your channel greatly useful as a source of accurate information. Greetings from Poland.
Greetings!!
That's an imperial Russian stove/radiator behind him. I saw several of them in St. Petersburg. They had no openings into the room so it didn't get smoky. Servants tended the fires from the adjoining service corridors.
Honestly I can't believe I just found this channel, this is frikking amazing. Signed up for patreon immediately, you are doing insanely good work.
Thank you and your team for continuing to give all of us such excellent and informative content.
Boo to you, RUclips for trying to financially strangle such wonderful and important historical knowledge.
‘Devil take the Hindmost “
A superb book on how group think leads to destruction!!
A book for our day !!!!
This series keeps getting better! I love the inter-war years, it's just such a fascinating time. This is now probably one of my favorite episodes probably up there with Greco -Turkish War episode.
Suddenly I feel we did not cover this subject enough in high school. Same as we did not cover WW2 nearly enough, and that was a point of passion for my history teacher.
Damn, even the company names are familiar! J. P. Morgan? SERIOUSLY???
That was not _'just'_ the company, but J.P. himself.
Why so shocked? The money aristocracy will always survive. They occasionally might lose on the side of the road, but money goes where money is and then stays there.
@@TimeGhost J.P., Jr., of course.
Indy and crew are now my children's history teacher.
I can't help but think about the End The Fed meme while watching this.
Scary how much this sounds like 2019
Yep, goes to show you. NEVER put a lot of your money into even legit stuff with the reasonable promise of quick bucks - especially if you're in the lowest tax bracket. Still, even the 1% would be wise to heed this advice - as the October crash left a lot of Wall St brokers "begging with a cup", selling apples, or (tragically) dead from suicide.
Hey guess what? 2020 sucks balls too
Just wait til 2024, o commenter from the past.
MY MAN WITH THE HISTORY
Yo ! Those old school lights burning in the background are very sweet. I can defiantly appreciate that touch in that era setting 😊
This is well produced. Love the aesthetic touches: Art Deco accessories, de Stijl graphics, Mr. Neidell's color-coordinated wardrobe. It's sylish, informative, tightly scripted and energetically presented. Props.
It is such a nice decor and house you guys film in ? is it a studio , a crews actually home?
It is indeed Sparty and Astrid's lving room. The WW2 set is in a homemade shed in their backyard. Really.
@Mial isus Looks like incandescents to me, but at a distance the newer filament style LEDs can be hard to distinguish. They're under a glass dome (which is a good way to cook the electronics in LED bulbs) so no direct touchy... and it's not like generations haven't been able to deal with incandescents.😀
This has got to be the greatest series on YT. Amazing work!!
Thank you, that means a lot to us all!
This is a great news-history Chanel. I am so impressed! I even am impressed by the narrators’ dress and the backdrop props so indicative of the times the program depicts. A wonderful channel providing information we didn’t clearly get in school!
Here's a comment cause I hope it will effect the algorithm daemon and cause more recommendations
My theory on how the panic set in: Time travelers knew when the bubble was going to collapse and sold their stock, thus causing the depression they knew was coming.
Are you sure Skynet didn’t send economic terminators to purchase a ridiculous amount of stock and sell it all at once to prevent the birth of John Conor?
fair
Thank you for pulling this work together. I think we are in an era when we can create true synthesis and integration of history. The informational resources are there and we have a more educated and socially aware population. The events from ''The Time between 2 Wars'' is fundamental to describe the prelude of the rise of the US as an economic power, amongst other merits. Your synthesis is by far the best I have found for a high level view. It can serve very well someone who didn't spend four years getting a degree in economics, but wants a gain a fair understanding and a frame of reference to advance his knowledge in other related areas.
You're welcome!!
What a great explanation of things, looking forward to the next two episodes!
Awesome work and that ceramic heater behind you is awesome too.
Anyone recognise the title?
It's from the previous episode. These guys are smart! Hahahha
1929: Bitconnneeeeeect
ROFL! 🤣 😂 😅
It always scares me when I watch these videos and feel like events in the modern day are beginning to rhyme more and more...
OH YOU'RE DOING IT !!! THE GREAT OF 29 !! I was waiting for this one for a wile.
I love the slow close-up at the end of the video.
Heard "Canadian shell companies" and spent a good 5 minutes wondering why Canada would need to export seashells
🤣
Lol, he doesn't know about the three seashells....
@Gary Daniel You don't know how to use the three seashells?
Unlike Dutch Shell companies they have a lack of backing.
@Gary Daniel Demolition Man
Man time doesn't change much does it? I'm loving these videos, found you guys recently. I am Canadian, so only really learned this stuff as very removed thing. I was always more interested in medieval history growing up, this is new and super interesting, sounds like a large scale version of the comics bust in the 90's.
Damn this was an especially great episode. Is there any chance that you will talk about former Fed Chair, Ben Bernanke's assessment of the Feds role in the depression from his remarks at the University of Chicago in 2002?
Would be great to see you going into further detail about economics during the great depression, for example on how different countries left the gold standard to have greater power over monetary policy, which ultimately helped their recovery. Another great thing to look at would be how there was great debate about this, for example on how Keynes supported protectionism in order to devalue the sterling because he thought that it would be politically unfeasible to get Britain off the gold standard
Abolish the Fed
Also Winston Churchill's returning sterling to the good standard at an over-valued rate in the mid twenties will be interesting as well.
@@flamefusion8963 why abolish the institution that guarantees stability in the US and global economy?
@@markwalshopoulos you're literally watching an episode about the Great Depression buddy. You tell me how good for economic stability that was.
@@flamefusion8963 you mean when the fed had limited control over monetary policy? When they were restricted by the gold standard? If you want a good example of what would happen without a central bank, look at the comparison between New South Wales and Victoria. In 1846 the British government began granting the Australian colonies various rights to self-government, among those rights was control over banking. By 1862, the British government had fully ceded all banking responsibilities to the Australian colonial governments(except Western Australia), which decided to let the market be free. Consequently, there was no central bank and very few banking regulations. There were no price controls, capital controls, debt regulations, deposit guarantees, and the whole system was based on gold. Thus between the 1860s and the 1890s, Australia was essentially an experiment in Austrian free banking.
According to Austrian economics, a credit boom should not be possible under these conditions. Without a central bank artificially depressing interest rates, private banks should accurately set rates according to market conditions. Malinvestment should be averted, and no great credit boom and bust cycle should appear. Yet that's the opposite of what actually happened.
Australian banks began lending to real estate speculators. Then many companies specializing in highly speculative stock market and property investments appeared, and the private unregulated Australian banks were only too happy to lend to them as well. By the 1890, the rampant credit inflation had burst. Between 1891 and 1892, more than forty Australian banks failed. By early 1893, the Commercial Bank of Australia, the largest bank in the country, had also failed.
What happened afterwards deals yet another blow to the credibility of Austrian economics. At the time, there were two large centers of the Australian economy. There was the Victoria colony, and there was the New South Wales colony. Both colonies were self-governed and the two colonial governments responded very differently to the banking crisis. In Victoria, the government did nothing. It chose not to intervene in the markets and as a result the crisis deepened. Victorian banks were toppling over like dominos and its economy went into a deep depression. Real GDP in Australia fell by more than 12% in 1892 and another 5.5% in 1893 due to the banking crisis in Victoria.
By contrast, the government of New South Wales abandoned its previous lassize-faire approach and decisively intervened. It declared the bank notes of the major NSW banks to be legal government tender and announced it will act as a lender of last resort. As a result of these actions, the banking crisis in NSW was over in a week and it largely escaped the economic depression.
How do you reconcile the Australian free banking era with Austrian theories? A massive credit boom and bust cycle developed despite the absence of central bank meddling. And in the aftermath, decisive government intervention prevented an economic depression in NSW while a lack of government action in Victoria led to a deep depression. In fact, the 1890s depression in Australia was more severe than the Great Depression was for Australia. Free banking had managed to produce an economic depression worse than the Great Depression! Which is generally considered the worst example of central bank mismanagement.
Now fast forward to modern day. Modern Australia has a central bank like any other. And like the US Federal Reserve, the RBA set an inflation goal of 2-3% and uses all the tools of modern banking to help achieve that goal. Thus according to ABCT, Australia should be subject to a cycle of credit booms and bust just like everybody else when its central bank misprices credit. There is just one little problem with that. Australia hasn't had a real economic recession in 25 years. Its last recession ended in 1991 and since then there has been nothing but growth with brief periods of slowdowns(but not recessions) in-between. Australia even escaped the 2008 global recession. How is this possible? Are Australian central bankers geniuses who never sets the interest rate too low or too high? Or are Austrians largely full of shit?
It may not seem like it , but this is the most informative video i've seen on the channel. Is very few historians even vaunted ones Actually break down step by step what happened during the crash.
Thank you
@10:39 so the people and the market were basically like orks, if enough of them believe in something it will become fact
Paint it red and it will go faster!
basically...yes. Still is, by the way.
Which is why we must purge the filthy xenos and their heresy.
@@luciussulla2641
Suffer the Xenos not to live!
*Exterminatus intensifies*
Great Warhammer 40K reference!
One of the best episodes so far!! Keep up!!!!!
One of the things that don't get talked about a lot is that not only markets fly high without productivity, but sometimes markets break despite high productivity. I actually believe this has been used in the past by the US near foreign elections to help elect their candidate.
Yet another great episode. You people are amazing. Been watching the Great War since 2015 (or should I say 1915?) and I am watching Between Two Wars and World War II since their respective "day one ". Godspeed, you magnificent bastards. Hope the issue with RUclips will be soon resolved.
Thanks! As do we.
Awesome Job guys, Keep up the great historical content.
I really love the "calm before the storm" narratives, With the benefit of hindsight it's quite fascinating to look at the time JUST before the big historical events, to get inside peoples heads. The people who woke up the morning of June 28, 1914 had no clue that an event would take place in Sarajevo that would plunge the would into chaos that would shatter the very make up of Europe and the world in general, i'd say even in the following weeks people had no clue what would become of it.
This gives me that same feeling and you did a wonderful job of getting into the minds of people just before the crash. The fact that people were so excited and had just reckless optimism is just fascinating. The quote from Hoover was especially enlightening, most people seemed to think that they had discovered the solution to poverty. I mean that quote in and of itself is just so ominous know what was to come.
You also did a great job of showing the scope the the problem and showing that once this house of cards got built there really wasn't anyway to fix it without causing the very crash that they wanted to prevent. It became a problem where the only solution was to let it crumble.
9:28 I was waiting to see what was the event was that finally caused the panic, Kind of disappointed that we still don't really know what caused it but once it started it just snowballed.
I find it unnerving and slightly chilling when I see photos or footage of happy people just before the July Crisis, knowing what they will go through.
I 've been watching your videos while writing my master on interwar France :) keep up the good work!
this channel is great!
Really enjoyed this look “ back” at the crash. I’m in school now working on my MBA. There is still fall out from this decades later...
Wow, thats cool, always nice to see people pursue passion over degrees in more mundane things like astrophysics.
A Beautiful illustration of aiding Wall Street and ignoring Main Street the economic rock.
Love your videos. Quality stuff. I wish I had time to watch them all
7:38 "house of cards no wrested" Ah spaces, always causing errors...
Great job guys! Another fantastic video with a great tie in at the end.
The dust bowl is another topic I would love to see covered
1:05 so Indy really is a time traveler
You mean Sidney Reily?
@@indiananeidell9186 Shh, they still think you were executed by the Bolsheviks.
Thank you. This story will repeat soon
Props to whoever edited it... for making the links show up after Indy gave up pointing. :p
Love the new intro by the way.
Thanks,in. Wieke;s name - he took the initiative as he felt we were moving into the 30s and needed a facelift.
Thanks
Provides a succinct explanation of options trading. This guy's good. I say this as someone attempting to learn to trade options.
Your videos would worth their bits in Gold, to a time traveler.
Great video, and great presentation!
It took until 1954 for the DJIA to reach its pre-crash level.
At that point the senate created a committee lead by top economist John Keneth Galbreith to make a report on whether a new crash was imminent. The committee concluded that there was not such a risk in 1954, as the financial system and its drivers were completely different than those of 1929.
Galbreith summarized the conclusions and evidence of its survey in a book: "The great crash 1929". A true masterpiece!
@@georget8008 It did likely set things in store for the stagflation of the 1960s and 1970s I would imagine.
YEAH FOR CONTROVERSIAL TOPICS! HISTORY!!!
Great show !! Looking forward too the next two part !
I was hoping you'd look at Joseph P Kennedy, and how he also manipulated the market, then became the first SEC Chairman!
Something was already going on in the stock market crash. My grandmother told me that the Sunday night before the "crash", people we coming into the church service to get people to go outside where they were trying to sell them stocks ("unload"?). They were not in the market at all, but my other grandfather was heavily into futures and lost everything. Fortunately their house was paid off.
I hope Indy talks about how crime sky rocketed in the 30s and how there were celebrity criminals like Dillinger, Bonnie and Clyde, and baby face Nelson.
You are fantastic!
Discussing the Fed from this time is difficult to the extent that even now we can't clearly say "loose money policy" or "tight money policy" for the 1929-35 period. Wrapped up in that is the death of Benjamin Strong, chairman of the NY Fed Reserve in 1928. He had basically been leading the system since 1914 and after his death there were many opinions and a bit of a power vacuum.
Could you please do a special episode on Erich Fromm and his 'fear of freedom'? Very applicable here.
“Irrational exuberance...”
I was the 700th like with ZERO dislikes. Congrats! Best series.
Excellent Episode Indeed !!!
Nice video, you make some good points
Markets will always rise and fall... like the waves on an ocean. Thank you Professor Indy :)
The reckless optimism of the investor class more than the times would be more accurate I feel.
Oh boy, now I am looking forward to the rest of the series and what you guys have to say about FDR and the New Deal, because there is going to be a HUGE debate whenever or not the New Deal and FDR´s politics where good or not, to this day people are fighting over whenever or not the New Deal was a success or not and if the US needs another New Deal.
It didn't...www.freedomworks.org/content/debunking-myths-great-depression
What? New intro?! Nice!
".... somebody told us Wall St failed, we were so poor that we couldnt tell...."
Always love the backgroud music
Wow! For historians you really have good understand of how economic work. Perfect!It is the same today, it is just that today they know how to keep the balloon in the air longer. How long can they do it?
I've been out of the market since early 2018. Left money on the table. "I'm good."
It is imperative to note the role of the Fed in starting and fuelling the bubble. Hoover's protestations were just on Stock market loans , however he was for a broader credit expansion. They thought they could expand credit exactly where they want it to. A folly still present among policy makers.
Awesome video
I'm curious, did the financial crisis hit the Soviet Union, and if it did how? If not did the Soviet Union take advantage,how and did they use this advantage to rebuild the country after the civil war? Long time fan since the 4th episode of The Great War, you guys are awesome.
The Soviet economy grew under unheeded during the depression, if official figures are to be trusted. The financial sector in the Soviet union was heavily regulated by the government so there wasn't a bubble to be pricked by the crash. Of course, you can bet everything and more to the Communist propaganda to blast propaganda about it.
In a short answer no. They where politically and economically isolated since day one. This shielded them for almost the entire shock of the fall, however the recovering Soviet daily life was an outcome of peace and state effort, rather then outside investment. This 'recovery' is only marginal, as when the entire world wants your country to stave to death, your gains are going to be trivial.
George Gabby Haze started out as Hop a long Cassidy's side kick. Made his fortune in the stock market, retired early. Lost it all in the crash. Went back to westerns as Roy Rogers side kick. Classic case of his loss our gain.