ABSTRACT
Times are tough and expected to get tougher. With astonishing quickness the public mind went immediately to the Great Depression, while Washington was still trying to throw cold water on the talk of recession. By the way, the difference between a recession and a depression is easy to explain. Hard times are the inevitable consequence of good times. Indeed, how serious the crash will be is directly a function of how good and prolonged the good times were. We could not work and live together in this world without a great deal of trust. We shall always have crashes, and indeed it could fairly be said that it would be a very distorted world that was free from them. They take a lot of casualties, but the number of casualties can be regulated to a large extent by requiring those who take investment and credit risk to cover themselves partially with safe reserves.
