Sunday, November 9, 2008

Re: John Kenneth Galbraith's book "The Great Crash, 1929"

Over the past few weeks, I have discussed with friends John Kenneth Galbraith's book "The Great Crash, 1929" which was published in 1955. While two market crashes will not be identical, there are some startling similaries between the dynamics leading up to the 1929 crash and today's situation.

For additional thoughts , check out the front page of today's New York Times Week in Review section. The article "Seeking a Poet for the Great Mess of ’08" focuses on Galbraith's book.

2 comments:

  1. And I have been reading "A Short History of Financial Euphoria" by the same author. At 110 pages, a lot of bang for very little investment in time.

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  2. One of the memorable excerpts from the book referencing Senate hearings in 1932:

    “Senator Couzens: “Did Goldman Sachs organize the Goldman Sachs Trading Corp. ?”

    Mr. Sachs: “Yes, sir.”

    Senator Couzens: “And sold its stock to the public ?”

    Mr. Sachs: “Yes, sir.”

    Senator Couzens: “At what price ?”

    Mr. Sachs: “At $104. The stock was split 2-for-1.”

    Senator Couzens: “And what is the price of the stock now ?”

    Mr. Sachs: “Approximately $1 ¾.””

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