The villains of the Depression were the trade-killing, international-capital-flow-strangling Smoot-Hawley Tariff, an overly tight monetary policy and a catastrophic tax increase.
These beggar thy neighbor policies led to the collapse of world trade and capital flows during the Great Depression.
The Smoot-Hawley Tariff, signed into law in June 1930, triggered a horrific trade war that contributed mightily to the Great Depression.
That would be the sharpest fall since the Depression, and the first decline in trade since a small dip in 1982.
You don't want to leverage 10-year Treasuries unless you believe the Great Depression is around the corner and Treasuries trade at a 1% yield.
The World Bank and the International Monetary Fund were created at the conference at Bretton Woods in 1944 as a means to regulate trade between nations in the aftermath of the Great Depression and World War II.
That period in the 1930s where a prolonged Depression precipitated the high-speed collapse of trade, currency arrangements and international co-operation.
During the Great Depression, for example, the U.S. actually ran trade surpluses every year.
Recall that the Smoot-Hawley trade restrictions of 1930 turned a stock market panic into a multi-year Great Depression, broken only by World War II.
Bad decisions on trade, taxes and monetary policy turned a 1929 stock market hiccup into the 1930s-long Great Depression.
Doesn't anyone in authority remember that the notorious Smoot-Hawley Tariff of 1929-30 precipitated the Great Depression by slapping prohibitive taxes on hundreds of imports, thereby setting off a devastating global trade war?
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