I know everything is fine according to Mr Bernanke, who believes the economy will continue to grow. Or more precisely, who says he believes the economy will continue to grow. And senior government officials don’t lie, do they? But maybe we should take a look around:

• There are pictures of bank runs in the media, complete with police to keep order in the line.
• Entire subdivisions of new houses stand empty, ghost towns that were never inhabited.
• In many areas, foreclosures account for the majority of house sales.
• General Motors is “restructuring” and laying off employees for the second time this year.
• The SEC is restricting short selling in certain financial stocks.

There had been much talk about eliminating short selling. The NYSE now requested lists of all holders of borrowed stock (short sellers). The rush to cover to stay off the list and to realize profits assisted in ending the decline.

The discount rate was reduced again, to 4 1/2%. Congress rushed a tax cut. Rockefeller ordered 1 million shares of Standard Oil at 50. An order for 50,000 shares of U.S. Steel at 150 “pegged” that speculative leader. Its drop from 261 3/4 to 165 had been the bellwether of the crash.

The gyrations quieted. The stock market rallied in quiet trading for the rest of November 1929.