The fortunate speculator who had funds to answer the first margin call presently got another and equally urgent one, and if he met that there would still be another. In the end all the money he had was extracted from him and lost. The man with the smart money, who was safely out of the market when the first crash came, naturally went back in to pick up bargains.
The bargains then suffered a ruinous fall. Even the man who waited out all of October and all of November, who saw the volume of trading return to normal and saw Wall Street become as placid as a produce market, and who then bought common stocks would see their value drop to a third or a fourth of the purchase price in the next twenty-four months.
The Coolidge bull market was a remarkable phenomenon. The ruthlessness of its liquidation was, in its own way, equally remarkable."
John Kenneth Galbraith, The Great Crash of 1929
"Adversity makes men, and prosperity makes monsters."
Victor Hugo
"Those who have the faith had better keep in the state of grace, and those who have neither had better find out what they mean, for in the coming age there will be only one way to stop your trembling knees, and that will be to get down on them and pray. The most important problem in the world today is your soul, for that is what the struggle is about."
Fulton J. Sheen
Stocks slumped strikingly in the overnight futures and declined quite a bit towards critical support in the morning.
But during the day the bulls and their dip-buyers came in to stabilize prices, and then gradually then turned into the green, and rallied quietly but steadily into the close, going out near the highs.
Gold and silver were hit hard again.
The Dollar rallied higher, taking a firm hold on the 101 handle.
The VIX declined inversely to the stock rally in the afternoon.
Nice bounce for equities. Let's see if they can keep it together.
Have a pleasant evening.
