Experts - then and now - always get it wrong

History is difficult to discern when you are living through it. The Great Depression provides an excellent example. That downturn was not considered abnormal for several years. Our current economic problems are subject to the same up-close myopia.  The "best and brightest" of the 1930s provide an embarrassing record. Here is some of the wisdom prior to the October 29, 1929 crash of the Dow: We will not have any more crashes in our time. - John Maynard Keynes in 1927 Stock prices have reached what looks like a permanently high plateau. I do not feel there will be soon if ever be a 50 or 60 point break from present levels, such as (bears) have predicted. I expect to see the stock market a good deal higher within a few months. - Irving Fisher, Ph.D. Yale economist, Oct. 17, 1929 The October crash was painful, but most of the pain was yet to come. The stock market did not bottom until mid 1932. The eventual drop from the 1929 peak was almost 90%. Most of that loss...(Read Full Post)