Analysis Of Galbraith 's ' Commercial National Bank And Trust Company

999 Words May 9th, 2016 4 Pages
Throughout the book, Galbraith emphasizes the psychological factors repeatedly. Beyond sustaining the market mania, the optimism lasted long and continued even after the crash, which was particularly evident in the press. On November 4, 1929, the Commercial National Bank and Trust Company advertised in New York Times, “our belief and conviction that the general industrial and business condition of the country is fundamentally sound and is essentially unimpaired” (121). The Harvard Economic Society’s forecasts also remained positive. On December 21, 1929, it writes, “A depression seems improbable; [we expect] recovery of business next spring, with further improvement in the fall”. On January 18, 1930, the Society said, “There are indications that the severest phase of the recession is over” (145). Peter Temin, who looks at New York Times and Business Weeks, also agrees with Galbraith that the attitudes of public officials, businessmen, and financial writers did not seem pessimistic until the last quarter of 1930 (78-79). However, in her uncertainty model, Christina Romer argues that the business reports in different publications were collectively uncertain about the future immediately after the Crash. These forecasts not only helped to form an uncertain atmosphere but also reflected the consumer uncertainty in the society. She quotes the Harvard Economic Society’s Weekly Letter on November 16, 1929, “the unprecedented declines in stock prices make it difficult to estimate at…

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