NOVEMBER 2– THE SACRIFICES OF THE VETERANS INSPIRES CITIZENS TO HELP EACH OTHER.

Hits: 164

Alex Philippidis Remembers 9/11: HELPING THE HEROES THE LEGACY

Hits: 181

 

WPCNR NEWS AND COMMENT. From Alex Philippidis of Genome Web Daily News, Mary Ann Leibert, Inc.  September 11, 2016:

Editor’s Note:

Alex, well-known local reporter around Westchester County for the last 38 years sent along his remembrance of what happened after the Twin Towers fell: 

Two weeks after 9/11, I wrote this article sharing this story of something good that came from something evil… No link to this story exists any more, so I copy it in its entirety below:

Helping the heroes

From: Westchester County Business Journal, Oct. 1, 2001

“The World Trade Center should, because of its importance, become a living representation of man’s belief in humanity, his need for individual dignity, his belief in the cooperation of men, and through this cooperation, his ability to find greatness.” – Minoru Yamasaki, architect of the Twin Towers

Nearly three weeks have passed, but the memories are as fresh as ever for Jay Martino and 50 of his colleagues about the hell they witnessed at Ground Zero of the terrorist attacks that leveled the World Trade Center.

“It’s an unimaginable site of destruction. You search your mind to come up with the right verbiage, the right adjectives. How can I describe what I saw? It’s a horrific scene,” said Martino, a general superintendent with Granite/Halmar Construction Co. of Mount Vernon.

Martino, head of the Masons & Concrete Contractors Association of Hudson Valley Inc., led a team of workers who answered their industry’s call to send volunteers and heavy machines to the tons of wreckage that comprised the Twin Towers and five smaller buildings.

Granite/Halmar was among dozens of construction contractors in and around Westchester that sent resources to the World Trade Center in response to a memo distributed to all 650 members of the Construction Industry Council (CIC) of Westchester and Hudson Valley Inc. of Tarrytown.

Yonkers Contracting Co., which helped build the World Trade Center in the 1970s, donated 100 trucks to the rescue effort, while Tilcon New York Inc. of West Nyack and four subcontractors donated equipment and personnel from their 21 quarry and asphalt facilities in New York and New Jersey.

“I think more than any other industry, construction contractors and workers comprehend the enormity of the task at hand because we understand the magnitude of what it takes to create such magnificent structures and buildings,” said Ross J. Pepe, CIC president.

“Everyone in our industry has a deep and new-found appreciation of the ironworkers, operating engineers, laborers, Teamsters and other union workers now at the site as the world watches these guys on TV doing a job that nobody would ever want to do.”

The World Trade Center took half a decade to build, but only two hours for terrorists to level in the series of attacks that shook the world on Sept. 11.

County construction industry responds
The following day when CIC asked for volunteers, hundreds answered the call. Fifty of them came from Granite/Halmar, which had hired them for its many projects under construction – such as the new international arrivals terminal and an expansion of the British Airways terminal at John F. Kennedy International Airport.

“They said they needed cutoff saws, tools, oxygen tanks, manpower. So I put the call out to all of our foreman asking if any of them would volunteer,” Martino recalled “We loaded a half-dozen pickup trucks with oxygen and acetylene gas tanks, plus dust masks, goggles, safety glasses.”

The Granite/Halmar men joined other CIC member companies in assembling at Yonkers Raceway, then following a state police escort south to lower Manhattan. Authorities have divided the area in and around the World Trade Center into four zones, each overseen by a construction contractor: AMEC p.l.c.; Tully Construction Inc.; a joint venture of Turner Construction and Plaza Materials Inc.; and Bovis Lend Lease and two subcontractors, Grace Industries Inc. and Gateway.

Granite/Halmar entered the site working for AMEC, which controls the northwest zone of the recovery area, Granite/Halmar had worked for AMEC at the Kennedy airport projects.

“We hooked up with a firefighter, a captain. He escorted us to ground zero. Right away we went to work with the firemen. They were elated to see us. They had nothing. They had no cutoff saws we could see. They had one set of torches. They were working their way through the pile of rubble with picks and shovels. Everything was done by hand,” Martino said.

“We were cutting steel into pieces. We took everything we could handle and loaded it into 5-gallon barrels, then kept passing them on down the line,” Martino said. “We worked till late in the evening, 11 or 12 o’clock at night.

“It was just amazing, the amount of debris and structural steel there was around. You stood on steel beams that had just collapsed. You’d look at the steel and it was completely clean.

There was no concrete to be found. You didn’t see any chunks of concrete. The fire was so great the concrete had disintegrated.’

“You’d see bits and pieces of carpet, and every once in a while, there would be a bumper to a vehicle. You stood on the steel beams which had collapsed,” Martino said.

Not once during their time at Ground Zero did Martino or his men spot any bodies, or any parts of bodies.

“I was not looking forward to anything like that. I was looking to help and I would have gone anywhere I was told to go. But I kept wondering. What would I do if I saw something? How would I react?”

An especially welcome sight, Martino said, was the hundreds of volunteers who catered to weary rescuers: “Every time you turned around, you heard. Do you need something to drink? Do you want something to eat? They had buckets of water and Gatorade. They had Power Bars.”

Just three years ago Martino and workers from GraniteHalmar’s predecessor, Halmar Builders of New York Inc., transformed the drab exterior public space outside the World Trade Center into World Trade Center Plaza, a public plaza complete with granite pavement and landscaped areas.

Looking at a poster-sized photo of the plaza outside his office, Martino paused. “I feel funny seeing the pictures of it now.”

Posted in Uncategorized

OCTOBER 30—COUNTY EXECUTIVE JENKINS: $50,000 TO FEEDING WESTCHESTER AS SNAP ENDS

Hits: 167

(White Plains, NY) – With federal SNAP benefits set to end on November 1 and no relief in sight, Westchester County Executive Ken Jenkins announced an emergency allocation of $50,000 from the Department of Social Services (DSS) budget to Feeding Westchester.

Jenkins said: “The SNAP funding cuts are a choice made by President Trump and the Republican majorities in the Senate and the House. There was a plan to continue funding SNAP that was recently removed from the USDA website. Families across Westchester are facing an unimaginable hardship. We cannot — and will not — allow our neighbors to go hungry. This emergency funding will help Feeding Westchester and our local food pantries step up in this moment of crisis to make sure no one in our community is left behind.”

Feeding Westchester Chief Operating Officer Tami Wilson said: “I can’t imagine the stress and anxiety our neighbors are feeling right now with the loss of federal paychecks and the uncertainty of SNAP benefits not being funded in just a few days. To worry about where your next meal will come from, especially as we approach a holiday centered on food, gratitude, love, and family is something no one should ever have to face. We are so fortunate to have unyielding support and partnership from our community in the fight against hunger, with the County Executive and Westchester County Government right at the center.”

Westchester County Social Services Commissioner Leonard Townes said: “This is a time of great uncertainty for tens of thousands of vulnerable families in Westchester facing the real threat of hunger. We hope the federal government will do the right thing and use contingency funds for their designed purpose – to help people in need keep food on the table. But we can’t count on that. I’m proud that our County Executive is stepping up to do what we can to help our partners at Feeding Westchester and local food pantries try to fill this needless gap.”

The emergency funds will enable Feeding Westchester to expand food distribution immediately, prioritizing high-need areas where SNAP benefits have had the greatest impact.  The emergency funds will help ensure local food pantries can continue to distribute food at no cost to them, meeting the growing needs of families suddenly left without federal support.

Residents in need of food assistance can visit feedingwestchester.org to locate a nearby pantry or meal program.

Posted in Uncategorized

NOVEMBER 1 — VETERANS DAY COMING UP NOVEMBER 11

Hits: 146

VETERANS DAY –150 CROWD CITY HALL REMEMBRANCE AT THE MEMORIAL GARDEN

WPCNR MAIN STREET JOURNALBy John F. Bailey,  A Look back November 12, 2024:

White Plains citizens, veterans and a new generation to respect and honor White Plains veterans, those who fought and died and returned from wars America has fought.

A throng of 150 by my rough estimate of the throng in the Memorial Garden in  the city hall courtyard to reflect on veterans’ contributions and sacrifices and reflect on the future. Here is how it opened:

Mayor Roach spoke saying how happy he was to see such a large turnout to honor the veterans and reminisced about his family’s experience when he was growing up. He introduced the veteran honoree of the day Colonel Staci N. Coleman.

Colonel Staci N. Coleman, a 1988 graduate of White Plains High
School, joined the Air Force as an enlisted Weather Forecaster
in November 1992. She was later selected for Officer Training
School and graduated as the valedictorian of her class in 2003
at Maxwell Air Force Base, Alabama.
Colonel Coleman became the Director of the Commander’s
Action Group for the Commander of United States Air Forces in
Europe and United States Air Forces in Africa.
Throughout her career, she has taken on various roles supporting the Air Force,
Army, and joint, coalition and interagency   operations. She has
commanded both deployed and base-level units and has
completed eleven deployments in support of multiple
operations.
Colonel Coleman currently serves as the Chief of Foundation
Geospatial Intelligence and Meteorological and Oceanographic
Operations at the National Geospatial Intelligence Agency in
Springfield, Virginia.
In her role, Colonel Coleman advises the
agency on policy, strategy, and operational issues, ensuring the
delivery of top-tier geospatial intelligence that gives
policymakers, military personnel, intelligence professionals, and
first responders a significant advantage.
An inspiring addition to the ceremony were students from White Plains Schools reading tributes to each branch of the armed services.
Commissioner of Recreation and Parks Wayne Bass closed the Remembrance and introduced the White Plains High School Marching Band which played the anthems of the 5 armed forces  in their  traditional medley.
The band played the most inspiring anthems in the world  splendidly in unique new arrangements that were made powerfu  by the players’ paced beat, crisp roll-offs  by the drum corps that segued  into each anthem building letting you know something was coming  started slowly, majectic, and swelled in majesty. The audience was rapt!
Posted in Uncategorized

OCTOBER 30–TONIGHT AT 8 PEOPLE TO BE HEARD FIOS CH 45. OPTIMUM CH 76–INTRODUCES THE NEW YORK PRESBYTERIAN–THE ONE

Hits: 141

JOHN BAILEY INTERVIEWS 

TARA RITCHIE 

ON HOW NEW YORK-PRESBYTERIAN THE ONE  AT 1111 WESTCHESTER AVENUE SERVES YOU

WHAT “THE ONE” BRINGS TO WHITE PLAINS AND ALL OF WESTCHESTER COUNTY

WHY NEW YORK-PRESBYTERIAN CREATED IT.

HOW IT’S  BEING USED BY NEW PATIENTS AFTER 7 WEEKS SINCE ITS DEBUT

WHO’S USING IT AND WHY IT MAKES SENSE FOR YOU

HOW TO USE IT.

ON WHITE PLAINS WEEK PEOPLE TO BE HEARD TONIGHT AT 8, SATURDAY AT 7

AND ANYTIME ON WWW.WPCOMMUNITYMEDIA.ORG

Posted in Uncategorized

OCTOBER 30–FALL TIDE OF VIRUSES USHERS IN NEW YORK AREA: YOUR LOCAL EPIDEMIOLOGIST DR. MARISA DONNELLEY

Hits: 151

Posted in Uncategorized

OCTOBER 29– WESTCHESTER REPRESENTATIVES DEMAND DEPT. OF AGRICULTURE FUND SNAP

Hits: 171

***FOR IMMEDIATE RELEASE***

 

October 29, 2025

Senate Majority Leader Andrea Stewart-Cousins, Sen. Shelley Mayer, County Exec. Ken Jenkins and local leaders demand the US Department of Agriculture use contingency funds for SNAP after November 1

(White Plains, NY) – Senate Majority Leader Andrea Stewart-Cousins, State Senator Shelley Mayer, Westchester County Executive Ken Jenkins, and local leaders gathered to demand the United States Department of Agriculture (USDA) agree to use contingency funds to continue the Supplemental Nutrition Assistance Program (SNAP) through November. The leaders demanded that the unprecedented and cruel cuts be reversed.

 

Majority Leader Stewart-Cousins, Senator Mayer, and County Executive Jenkins were joined by Senator Pete Harckham; Assembly Members Chris Burdick and Dana Levenberg; County Legislators Nancy Barr, Terry Clements, Judah Holstein, David Imamura, Erika Pierce, and Jewel Williams Johnson; White Plains Mayor Tom Roach; White Plains Common Council Members Victoria Presser, Justin Brasch, and Jenn Puja; Tami Wilson, Interim CEO of Feeding Westchester; and Westchester Department of Social Services Commissioner Leonard Townes.

 

Over 45,000 households in Westchester County – over 73,000 residents – receive SNAP benefits. USDA is  refusing to fund the program after November 1, threatening over 2.9 million New Yorkers and nearly 42 million Americans. This decision directly contradicts USDA’s 2024 contingency plan, which explicitly states that in the case of a government shutdown, USDA should continue providing essential benefits such as SNAP, the Child Nutrition program, and the Special Supplemental Nutrition Program for Women, Infants and Children (WIC) using contingency funds. Previous administrations have always used reserved funds, intended for unexpected program needs, to continue funding SNAP during Government shutdown. This is the first time in United States history that SNAP assistance would be stopped during a shutdown.

 

Thankfully, on Monday, Oct. 27, Governor Hochul announced New York will fast-track $30 million in state funds to support over 16 million meals for New Yorkers facing hunger without SNAP benefits. The state is also exploring ways to send students home from school with meals. This follows the announcement last week that more than $11 million will be provided to support local emergency food relief.

 

Additionally, yesterday Attorney General Letitia James announced that she has joined a coalition of 22 other Attorneys General challenging the decision of the USDA to stop SNAP benefits by filing a federal court action alleging their decision violated federal law.

 

Speakers demanded that USDA reverse its decision and fully fund the SNAP program after November 1st.

 

Majority Leader Andrea Stewart-Cousins said, “On November 1st, millions of hardworking families and most vulnerable New Yorkers who rely on SNAP benefits will go without food.  Despite the government shutdown, the USDA could release funding but refuses to do so, which is cruel and unconscionable. I stand with my colleagues in demanding an immediate end to the shutdown and urging Secretary Rollins to release the funding families need to survive.”

 

State Senator Shelley B. Mayer said, “I am joined by colleagues at many levels of government to  demand the United States Department of Agriculture do the right thing and release the funds necessary to feed Americans across the country, including the over 73,000 residents in Westchester alone. The USDA has made an immoral, unprecedented decision. Never before has a government shutdown disrupted the distribution of SNAP benefits. This is a political decision that will be devastating to so many – primarily children, seniors, and individuals who are disabled. I am grateful that Governor Hochul has put forth funds to help those in need and that Attorney General James is suing the USDA over this decision –– but we should be clear this is a manufactured crisis. Under every faith tradition, it is a tenet that we must feed the hungry and help those in need. There is only one clear, moral thing to do. We call on the USDA to release the funds so Americans do not go hungry.”

 

Westchester County Executive Ken Jenkins said, “Families should never be caught in the crossfire of government dysfunction. The USDA has the ability — and the obligation — to act. Right now, more than 60,000 Westchester residents are facing the very real possibility of going hungry because of bureaucratic inaction. SNAP isn’t a luxury — it’s a lifeline. We’re calling on the federal government to do what’s right, use the contingency funds that exist for this very reason, and protect the people who need this support most.”

 

Senator Pete Harckham said, “Protecting SNAP is not about policy; it is a moral issue about fighting hunger. If Trump won’t invest in our safety net, children and seniors will pay the price. Food banks, hospitals, and community programs will be stretched to breaking point as families are left with nowhere else to turn. In the wealthiest nation on Earth, no one should go hungry, and no elected leader should ever call that acceptable.”

 

Senator Jamaal T. Bailey said, “The federal government’s failure to ensure continued SNAP funding during this shutdown is unconscionable. Thousands of families across New York, and millions across the country, depend on these benefits to put food on the table, especially with the holiday season around the corner. No family, senior, or child should have to wonder how they will eat because of the neglect shown by the departments made to protect them. I stand united with County Executive Ken Jenkins and NYS Senator Shelley B. Mayer in demanding that the USDA act immediately to restore these critical funds and protect our most vulnerable.”

 

Assembly Member Chris Burdick said, “The first responsibility of government is the safety and health of its people. It is unconscionable that the United States government would withhold SNAP benefits, money for food, from those most in need. I applaud our state’s Governor and Attorney General for doing all they can to protect New York’s residents from this incredible cruelty, perpetrated by the Trump Administration. The funds are there. The cruelty is the point. And that is unacceptable.”

 

Assemblyman Steve Otis said, “The intentional cruelty of the Trump Administration’s cutoff of SNAP funds provides another example of their disregard of the challenges of American families in need. SNAP provides individual assistance to $42 million Americans nationwide for purchasing food. Elimination of this assistance will crush our already overloaded food banks and feeding programs by forcing individuals in need to use those programs rather than buying food at local stores. The USDA has funds to maintain payments but has chosen human suffering over caring for American families.”

 

Assembly Member Dana Levenberg said, “Here in New York, I am proud that our state government is acting quickly to support New Yorkers who will be impacted by Washington’s completely unnecessary decision to starve needy American citizens. I applaud Governor Hochul’s decision to fast-track millions of dollars in emergency food aid. However, it is incumbent on our federal leaders to get their priorities straight immediately and use the tax dollars we send them in ways that benefit all of society, not just President Trump and his friends.

 

“President Trump, his administration, and his allies in Congress have all the power they need right now to keep Americans fed. That they are choosing not to demonstrate their complete and utter lack of decency and compassion. There is no good reason to allow anyone to starve; the fact that Trump and his MAGA Congress are doing so because the government is shut down over their refusal to lower health care costs makes this self-imposed crisis even more insane. MAGA politicians should want to do what’s right for Americans – unless the first ‘A’ in MAGA now stands for ‘Argentina.’ Americans can see what is being funded right now and what is not, and no amount of spin will confuse them about who Trump and his cronies really care about.”

 

Assemblywoman Amy Paulin said, “The USDA’s failure to maintain SNAP funding is unconscionable and will have devastating consequences for thousands of families in our community who depend on this vital program to put food on their tables. We cannot stand by while 42 million Americans, including many here in Westchester, face the prospect of going hungry.”

 

Assemblyman Nader Sayegh said, “SNAP means food on the table for millions of American families including many in our Westchester community. The USDA’s failure to act- to use contingency funds and keep this vital program going- is a moral failure. No family should face an empty table during the holidays because of the federal government’s neglect.”

 

County Legislator Jewel Williams Johnson said, “As Chair of the Westchester County Board of Legislators’ Health Subcommittee, I am deeply concerned about the well-being of children and families in Westchester County. Despite our reputation for affluence, one in ten Westchester residents—and nearly one in seven children—live below the poverty line. I see these struggles up close in my own District 8, where working families are doing everything right, yet still find themselves one unexpected expense away from an empty refrigerator.

 

“According to the Center on Budget and Policy Priorities, the recent federal cuts to SNAP threaten to undermine one of the most effective tools we have for preventing hunger, reducing poverty, and protecting long-term health. We cannot—and must not—accept a future where children go to school hungry or parents must choose between rent and groceries.

 

“I am calling on our federal government to fully restore SNAP funding—and if necessary, immediately access contingency or reserve funds—to ensure that no child or family in need is left behind. Because when we deny families the basics of nutrition, we erode the very foundation of our communities.  A hungry child cannot learn. A hungry parent cannot thrive. And a hungry county cannot truly prosper. Let us act with urgency and compassion—restore the resources, uphold our promise, and protect every family.”

 

County Legislator Nancy Barr, Chair of the Board of Legislators Human Services Committee said, “It is both irresponsible and bad government to hold back funding from individuals who need SNAP benefits to feed themselves and their families. In addition to starving people, the lack of funding will hurt businesses that rely on people being able to use SNAP benefits to pay for food at those establishments. Farmers and food manufacturers will also be impacted.”

 

County Legislator Erika Pierce said, “In every other government shutdown that I am aware of, our Federal Government has protected SNAP recipients, making certain that our most vulnerable residents do not go hungry.  This time, they are refusing to do so. Consequently, we are facing a manufactured crisis of horrendous proportions, which will not only have humanitarian impacts, but economic ones as well. Seniors and children both will go to bed with empty stomachs. Local businesses will be harmed. And with our food pantries already reeling from federal cuts, they will not be able to fill this void. This administration needs to choose differently.”

 

County Legislator David Imamura said, “It is absolutely unacceptable that Donald Trump is using human suffering as a bargaining tool in the government shutdown negotiations. Washington needs to release SNAP funding and should do it today.”

 

County Legislator Judah Holstein said, “It is disappointing and dangerous for Washington to withhold food from those in need just to play the blame game over the shutdown. Grocery costs are through the roof, and unemployment has climbed to its highest level in years. Families are already stretched to the breaking point. The USDA has contingency funds that could keep SNAP benefits flowing but refuses to use them. That money was meant for emergencies, and there is no bigger emergency than millions of Americans going hungry because of Washington gridlock.

 

“If we can find contingency money to buy $172 million luxury jets for DHS appointees and build an East Wing ballroom, then we can find the will to put food onto the tables of families who desperately need it. We can’t turn our backs on them now. If we can fund jets and ballrooms, we can feed families. We must put people before politics and protect SNAP funding.”

 

County Legislator Shanae Williams said, “Access to food assistance should never be delayed, especially during a government shutdown.”

 

The New York State Office of Temporary and Disability Assistance recommends New Yorker continue to complete all SNAP requirements including recertifications, periodic reports, and reporting changes. SNAP applications will continue to be accepted, though not approved until the federal shutdown ends. New applicants can apply for SNAP or Public Assistance at their local department of social services, or online at mybenefits.ny.gov.

 

You can watch the press conference here. 

 

Photos from the press conference can be found here.

Posted in Uncategorized

OCTOBER 29 — VETERANS DAY CEREMONY FRIDAY

Hits: 118

Image: Veterans Day Ceremony

Westchester County Executive Ken Jenkins
and Veterans Service Agency Director Joshua Gaccione
Invite you to Join us

Veterans Day Ceremony

Friday, November 7
Noon

Lasdon Public Gardens and Veterans Memorial
2610 NY – 35
Katonah, NY 10536

Posted in Uncategorized

OCTOBER 29: JOHN KENNETH GALBRAITH ON THE GREAT CRASH. IT HAPPENED 96 YEARS AGO

Hits: 158

 

From Wikipedia 

The Great Crash, 1929 is a book written by John Kenneth Galbraith and published in 1955. It is an economic history of the lead-up to the Wall Street crash of 1929. The book argues that the 1929 stock market crash was precipitated by rampant speculation in the stock market, that the common denominator of all speculative episodes is the belief of participants that they can become rich without work[1] and that the tendency towards recurrent speculative orgy serves no useful purpose, but rather is deeply damaging to an economy.[2] It was Galbraith’s belief that a good knowledge of what happened in 1929 was the best safeguard against its recurrence.[3]

The idea for the book

Galbraith wrote the book during a break from working on the manuscript of what would become The Affluent Society. Galbraith was asked by Arthur M. Schlesinger Jr. if he would write the definitive work on the Great Depression that he would then use as a reference source for his own intended work on Roosevelt. Galbraith chose to concentrate on the days that ushered in the depression. “I never enjoyed writing a book more; indeed, it is the only one I remember in no sense as a labor but as a joy.”[4]

Galbraith received much praise for his work, including his humorous observations of human behavior during the speculative stock market bubble and subsequent crash.[5]

The publication of the book, which was one of Galbraith’s first bestsellers, coincided with the 25th anniversary of the crash, at a time when it and the Great Depression that followed were still raw memories – and stock price levels were only then recovering to pre-crash levels. Galbraith considered it the useful task of the historian to keep fresh the memory of such crashes, the fading of which he correlates with their re-occurrence.[2]

The speculative bubble “PREAMBLE TO DISASTER”

The Florida land boom of the 1920s established the mood “and the conviction that God intended the American middle classes to be rich,” a sentiment so strong that it survived the ensuing crash of property prices.[6] 

In the early 1920s, yields of common stocks were favorable and prices low.

In the final six months of 1924, prices began to rise and continued through 1925, from 106 in May 1924 stock prices rose to 181 by December 1925.[7]

 

After a couple of short downturns during 1926, prices began to increase in earnest throughout 1927, the year in which conventional wisdom saw the seeds of what became the Great Crash sown. Following Britain’s return to the Gold Standard, and subsequent foreign exchange crises, there followed an exodus of gold from Europe to the United States.

EASING INTEREST RATES A COSTLY ERROR

In the spring of 1927, Montagu Norman and other governors of European Banks asked the Federal Reserve to ease their monetary policy and they agreed, reducing the rediscount rate from 4 to 3.5%, a move that Lionel Robbins described as resulting “in one of the most costly errors committed by it or any other banking system in the last 75 years”.

The funds released by the Fed became available to invest in the stock market and “from that date, according to all the evidence, the situation got completely out of control”.[8]

Galbraith disagreed with this simplistic analysis by arguing that the availability of money in the past was no sure recipe for a bubble in common stocks and that prices could still be regarded as a true valuation of the stock at the end of 1927.

It is early in 1928 that the “escape into make believe” started in earnest, when the market began to rise by large vaulting leaps rather than steady increments.

Prominent investors, such as Harrison Williams, the proponent of both the Shenandoah and the Blue Ridge Trust, were described by Professor Dice as “having vision for the future and boundless hope and optimism” and not “hampered by the heavy armour of tradition”.[9]

On 12 March, the volume of trading had reached 3,875,910 shares, an all-time high. By 20 June, 5,052,790 shares were traded in a falling market that many prematurely thought signalled the end of the bull market.[10] Prices rose once more and after the election of Hoover, with a “victory boom” resulting in an all-time record trading of 6,641,250 shares in a rising market (16 November).

Overall, the market rose during the year from 245 to 331 which was accompanied by a phenomenal increase in trading on margin,[11] which relieved the buyer from putting up the full purchase price of the stock by using the securities as collateral for a loan.

The buyer obtained full benefit of ownership in rising stock valuation, but the loan amount remained the same. People swarmed to buy stock on margin.

In the early 1920s, brokers’ loans used to finance purchases on margin averaged 1–1.5 billion but by November 1928 had reached six billion.

By the end of 1928, the interest on such loans was yielding 12% to lenders which led to a flood of gold converging on Wall St. from all over the world to fuel the purchase of stocks on margin.[12]

Aftermath of the crash

In the wake of Black Tuesday, London newspapers reported that ruined speculators were throwing themselves from windows but Galbraith asserts there was no substance to these claims of widespread suicides.[13] Embezzlement now came to the fore.

During the bubble, there was a net increase of what Galbraith calls “psychic wealth”; the person being robbed was unaware of their loss whilst the embezzler was materially improved. With the bursting of the bubble, accounts were now more closely scrutinized and reports of defaulting employees became a daily occurrence after the first week of the crash.

The looting of the Union Industrial Bank became the most spectacular embezzlement of the period. Unknown to each other, several of the bank’s officers began making away with funds for speculation. Over a period of time, they became aware of each other’s activities and unable to expose each other entered into a cooperative venture which in time came to include all of the principal officers of the bank. They took a short position just as the market “soared into the blue yonder of the summer sky”; so costly was this to the group that they took a long position just before the crash and this was to prove a mortal blow.[14]

The influence of the Wall Street crash on the Great Depression

Contrary to what had been Wall Street’s perceived tendency in playing down its influence, Galbraith asserted the important contribution of the 1929 crash on the Great Depression which followed:[15] causing a contraction of demand for goods, destroying for a time the normal means of investment and lending, arresting economic growth and causing financial hardship which alienated many from the economic system. [2] Galbraith further argues that the Great Depression was caused by a mixture of five main weaknesses:

First, an imbalance in the income distribution. Galbraith asserts that “the 5 per cent of the population with the highest incomes in that year [1929] received approximately one third of all personal income.” Personal income in the form of rents, dividends, and interest of the well-to-do was approximately twice as much as in the period following the Second World War, leaving the economy dependent on a high level of investment and luxury consumer spending, and vulnerable to the stock market crash.[16]

Second, problems in the structure of corporations. Most specifically, he cites newly formed investment entities of the era (such as holding companies and investment trusts) as contributing to a deflationary spiral, due in no small part to their high reliance on leverage. Dividends paid the interest on the bonds in the holding companies, and when these were interrupted, the structure collapsed. “It would be hard to imagine a corporate system better designed to continue and accentuate a deflationary cycle.” Also, “The fact was that American enterprise in the twenties had opened its hospitable arms to an exceptional number of promoters, grafters, swindlers, impostors, and frauds. This, in the long history of such activities, was a kind of flood tide of corporate larceny.”[16]

Third, the bad banking structure. The weakness was manifest in the large number of units working independently. As one failed, pressure was applied to another, leading to a domino effect accelerated by increasing unemployment and lower incomes.[17]

Fourth, foreign trade imbalances. During World War I, the US became a creditor nation, exporting more than it imported. High tariffs on imports contributed to this imbalance. Subsequent defaults by foreign governments led to a decline in exports, which was especially hard on farmers.

And finally, “the poor state of economic intelligence.” Galbraith says that the “economists and those who offered economic counsel in the late twenties and early thirties were almost uniquely perverse” and that “the burden of reputable economic advice was invariably on the side of measures that would make things worse.”[18]

Prospects for recurrence

Galbraith was of the opinion that the Great Crash had burned itself so deeply into the national consciousness that America had been spared another bubble up to the present time (1954).;[19] however he thought the chances of another speculative orgy which characterized the 1929 crash as rather good as he felt the American people remained susceptible to the conviction that unlimited rewards were to be had and that they individually were meant to share in it. He considered the sense of responsibility in the financial community for the wider community as a whole as not being small but “nearly nil”.[20] Even though government powers were available to prevent a recurrence of a bubble their use was not attractive or politically expedient since an election is in the offing even on the day after an election.[21]

In 2008 and 2009, Jim Cramer took to waving John Kenneth Galbraith’s book,[22] and praising it on his show Mad Money. He has been struck by the similarities between the crash described by Galbraith and the crash occurring in the Late 2000s recession.[23]

Posted in Uncategorized

OCTOBER 29 — 96 YEARS AGO THE GREAT CRASH HAPPENED TODAY

Hits: 173

from The History Channel.

The Stock Market Crash of 1929 occurred on  Friday, October 29, 1929, when Wall Street investors traded some 16 million shares on the New York Stock Exchange in a single day. Billions of dollars were lost, wiping out thousands of investors. In the aftermath of that event, sometimes called “Black Tuesday,” America and the rest of the industrialized world spiraled downward into the Great Depression, the deepest and longest-lasting economic downturn in the history of the Western industrialized world up to that time.

What Caused the 1929 Stock Market Crash?

During the 1920s, the U.S. stock market underwent rapid expansion, reaching its peak in August 1929 after a period of wild speculation in the Roaring Twenties. By then, production had already declined and unemployment had risen, leaving stocks in great excess of their real value.

Among the other causes of the stock market crash of 1929 were low wages, the proliferation of debt, a struggling agricultural sector and an excess of large bank loans that could not be liquidated.

Black Tuesday

Stock prices began to decline in September and early October 1929, and on October 18 a big drop in stock prices began. Panic soon set in, and on October 24, Black Thursday, a record 12,894,650 shares were traded. Investment companies and leading bankers attempted to stabilize the market by buying up great blocks of stock, producing a moderate rally on Friday.

On Monday, however, the storm broke anew, and the market went into free fall. Black Monday was followed by Black Tuesday—October 29, 1929—during which stock prices collapsed completely and 16,410,030 shares were traded on the New York Stock Exchange in a single day.

Billions of dollars were lost, wiping out thousands of investors, and stock tickers ran hours behind because the machinery could not handle the tremendous volume of trading.

Effects of the 1929 Stock Market Crash: The Great Depression

After October 29, 1929, stock prices had nowhere to go but up, so there was considerable recovery during succeeding weeks. Overall, however, prices continued to drop as the United States slumped into the Great Depression, and by 1932 stocks were worth only about 20 percent of their value in the summer of 1929.

The stock market crash of 1929 was not the sole cause of the Great Depression, but it did act to accelerate the global economic collapse which it was also a symptom.

Stock prices continued to drop through 1932 when the Dow Jones Industrial Average—a widely-used benchmark for blue-chip stocks in the United States—closed at 41.22, its lowest value of the 20th century, 89 percent below its peak.

Posted in Uncategorized