More Depression memories

More Depression memories

EDITOR:

I read with great interest the diary about the Depression that was in Sunday’s Vindicator. I am 91 years old and I remember the Depression all too well. His article told it just like it was.

I would like to add a couple points as I remember it.

The 1929 crash was caused by short selling on the market. Ordinary people could, and did, buy (for example) $1,000 worth of stock for $100. The other 90 percent was on margin — a paper loan. More than a few people had a small fortune — they thought. But all or part of the $900 had to be paid if the market went down. It did, suddenly, and snowballed. It crashed for three days and kept going at a slower pace until 1932. Investors had to sell their homes, their cars, and whatever else they could get together. They were wiped out. Suicides were common. Incidentally, margin today is 10 percent, still dangerous to some.

Banks had all those foreclosed homes and could do nothing with them. We rented a home owned by the bank. We paid the rent to an individual, and there were many, who took care of those homes for part of the rent.

Things didn’t start getting straighten up until Roosevelt. For my money, the greatest recent president we have ever had. The rest do not even come close.

JOHN FRASER

Sebring

Making a smart investment

EDITOR:

Politicians thrive on crisis, and if there isn’t one available, they will create one. Remember Bill Clinton’s worst economy in 50 years — turned out to be a minor downturn. Twelve years later, John Kerry claimed he faced the worst economy in 50 years. Only in Washington could we have a 50-year downturn every 12 years. So today, the question is: have the politicians finally gotten a real economic crisis, or have you gotten a once in a lifetime opportunity.

Let’s look at a real crisis: the stock market crash of 1929. In 1929 the stock market began falling from a Dow of 391 to a Dow of 41. It took more than two years to get to that low, which occurred in 1932, just in time for the Great Depression. Now that was a crisis, but then it gets interesting: in 1932 the country goes into depression, but the stock market rallies.

If you had the courage and some money, you could have bought the Dow in 1932 and by the end of 1934 your money would have increased almost five-fold. A $10,000 investment would have grown into $50,000. Even in the Great Depression, you could have made a lot of money investing — not in the false promises of government, but in the energy and resilience of the American people and the economy that they have created.

THOMAS MASKELL

Poland

Let them sink or swim

EDITOR:

Our government should not come to the aid of the multi-million dollar automakers. If they cannot manage their own finances, it’s not the federal government’s responsibility to bail them out. Here’s the reasons why:

1. The auto industry continued building large gas guzzlers throughout the years as the prices went up and the price of fuel soared.

2. It downsized its work force for the sake of its profits.

3. Automobiles contain foreign parts and their logo is still “American.” (Might as well buy a foreign vehicle).

Look at the foreign auto industries. They’ve been building low cost fuel efficient vehicles throughout the decade. It paid off in the long run, they are surpassing U.S. sales.

The ship is sinking for the U.S. automakers. Let them bail themselves out. They built it.

JOSE COLON

Youngstown

The real killers

EDITOR:

A recent writer from Liberty who said that the production costs, meaning the UAW worker, is the problem with the Big Three automakers couldn’t be more wrong. The main factor, besides the industry being “top heavy,” is the outrageous costs all three companies must add to each car to cover the costs of health care of all the employees, retirees and all of their families.

My wife is retired from a local school system. The cost to her health care coverage for a three hour visit to the hospital to replace a pacemaker was $28,000. Is that her fault?

Hospitals and all emergency units are mandated by Washington lawmakers to treat all incoming patients, money or no money. Who pays for these folks? No one — and Washington doesn’t care. So when a high-paying medical card carrier comes through the hospital doors, their providers are gouged to the Nth degree.

Pharmacy providers also offer doctors all across the country incentives for prescribing their products. Washington lawmakers have made little or no attempts to regulate the pharmaceutical manufacturers’ excessive fees due to the diligent work of the medical suppliers’ lobbyists. The sky is the limit.

These greedy players have never sat in on a bargaining meeting between the American auto managers and the UAW discussing the out of control medical costs, so no one has ever had an opportunity to rein in the real killers of America’s auto industry.

DAVID METZLER

North Jackson

Take the money and run

EDITOR:

This letter is directed to Henry Nemenz, owner of the local IGA and Save-A-Lot grocery stores.

Mr. Nemenz, the UCFW and individuals who are picketing your stores have publicly stated that their goal is to put you out of business, as evidenced by the closing of your Hubbard store.

Suggestion: Give them what they want. Close all of your stores. Live off the money you worked hard for your entire life. Place all of your diligent, responsible and loyal employees on the unemployment line. Cease donating your cash, time, food and services to local community and charitable organizations, Force your customers to shop your competitors, where they obviously will pay higher prices. Does the word “monopoly” come to mind?

Loyal customers of Mr. Nemenz’s Struthers store have ignored years of picketing by the UCFW. Kudos to those consumers.

RICK BERGER

Boardman