Some facts/quotes to put a bite in your morning coffee:
The predominant housing loan in the 1920s was the "interest only" loan. Oddly, it fell out of favor mmmm, about 1930, and was not to be seen again until the genius of modern financial leverage was born just a few short years ago, thanks to the short memories of the "making money out of thin air" financiers, said memories shortened by the apparent belief that the passage of time alone can reverse the lessons of history.
There is precedent for John McCain's "the fundamentals of our economy are strong." (See below the fold) However, John McCain alone has demonstrated the perspicacity necessary to realize that the "fundamentals of our economy" actually means a guy bolting an automobile engine into a chassis. The fact that the auto plant is boarded shut in no way reflects upon this (now unemployed) fundamental. As Spiro Agnew so eloquently put it, those who bring up such diversionary details are nothing more than the "nattering nabobs of negativism."
My Bionic Mom*, the depression survivor and collector of eventually relevant trivia has a little book just chock full of these:
*2nd titanium knee next week
What they were saying:
1929
September
"There is no cause to worry. The high tide of prosperity will continue."
- Andrew W. Mellon, Secretary of the Treasury (until the low tide comes in)
December
"The Government’s business is in sound condition."
– Andrew W. Mellon, Secretary of the Treasury (the rest of you are screwed.)
1930
January
"Trade recovery now complete President told. Business survey conference reports industry has progressed by own power. No Stimulants Needed! Progress in all lines by the early spring forecast."
– New York Herald Tribune. (Just edged out by the Chicago Tribune 18 years later with "Dewey Defeats Truman")
March
"President Hoover predicted today that the worst effect of the crash upon unemployment will have been passed during the next sixty days."
– Washington dispatch. (translation: by then NO one will have a job)
September
"We have hit bottom and are on the upswing."
– James J. Davis, Secretary of Labor. (Once an olympic diver)
November
"I see no reason why 1931 should not be an extremely good year."
– Alfred P. Sloan, Jr., General Motors Co. (What's good for General Motors...)
1931
January
"The country is not in good condition."
– Calvin Coolidge (nattering nabob)
June
"The depression has ended."
– Dr. Julius Klein, Assistant Secretary of Commerce (veritable genius)