August 16, 2013
According to Austrian Business Cycle Theory, when a central bank slows its money printing that has fueled a manipulated stock market boom, the stock market is very vulnerable to a crash. Murray Rothbard in his book America‚Äôs Great Depression explained how it occurred before the October 1929 crash:
It is generally acknowledged that the great boom of the 1920s began around July, 1921, after a year or more of sharp recession, and ended about July, 1929.
Production and business activity began to decline in July, 1929, although the famous stock market crash came in October of that year.