By the summer of 1929, one no longer spoke of investment trusts as such. It is crucial for us that each one accurate with regards to John Kenneth Galbraith. He uses his knowledge of the Great Depression and the Stock Market to explain what happened. It's a joy to read and each page, filled with indictment against the stupidity, lust and greed of those riding the wave in '28 and '29, flows easily and naturally. He was hyper-literate and wrote dozens of books and many tens of thousands of words. In the hands of a determined government their efficacy cannot be doubted. Above all, the financial genius was in on things.
Selwyn Parker's book also poses the question: could it happen again? Galbraith dismisses all other ridiculous ideas on why the Great Depression happened and delivers solid facts on what the real cause might have been. The bargains then suffered a ruinous fall. So inaction will be advocated in the present even though it means deep trouble in the future. He was active in politics, serving in the administrations of Franklin Roosevelt, Harry Truman, John Kennedy, and Lyndon Johnson. I can report that so far as I know he was not. To have a private economist was one possibility, and as the months passed a considerable competition developed for those men of adequate reputation and susceptibility.
This is currently interesting, for in the 1990s Barings was caught up in the more or less incredible operations of one of its minor minions in Singapore. I would have thought that the economy is supposed to be important in a capitalist system. Page edges with spotting, in 56 years old, Professor Galbraith , Ph. I do not accept the implicit moralism of either Galbraith or today's commentators - people do bad or silly things but it is our responsibility as much as theirs if we have not constructed the political or regulatory framework that will set limits to political or economic collective hysteria. In a community where the primary concern is making money, one of the necessary rules is to live and let live. Yet, without undue risk, it may be possible to gain from our view of this useful year some insights into the future.
It was a poor day in August and September of that year when no new trust was announced or no large new issue of securities was offered by an old one. No one who has been paying attention to the events of the past three years can fail to see disturbing similarities between the market crash of 2008 and 1929. It was a golden age for professors. Today, public companies outside the financial sector have generally been less highly leveraged and have enjoyed a long period of strong cash generation, and conglomerates have been out of stock market fashion for a generation. He was entertaining making fun of the ridiculous decisions people made at the moment.
Those in government and acting as financial regulators had two much less than optimum choices to make — they could put a pin in the bubble and burst it immediately, or they could wait around for it to burst of its own accord. I have seen Galbraith quoted by many people on both sides of the current debate about government spending and it's impact on stimulating the economy. Galbraith describes with clarity and thoroughness the events which preceded the great crash. It is packed full of insight and clarity of a situation which probably had no clarity at the time. The process continues; optimism with its market effect is the order of the day. As this is written, the broad economy seems to have stabilized, and experts are debating whether the stock revival of early 2009 is the start of recovery or a suckers rally.
Galbraith Canadian born by the way explores the before, then the dark days of October 1929, and the devastating aftermath. By 1929 the investment trusts were aware of their reputation for omniscience, as well as its importance, and they lost no opportunity to enlarge it. Second Edition, First Printing 1st Printing. He received the Presidential Medal of Freedom twice: one in 1946 from President Truman, and another in 2000 from President Clinton. Galbraith waits until the very end to address this issue, and does so with a surprising degree of humility.
This time there was no rescue; Barings, for all public purposes, disappeared. Cabot presumably spoke with some authority. After the Civil War came the railroad boom and a particularly painful collapse in 1873. The bad distribution of income. But the government did nothing, and less than nothing, delivering instead low interest rates, deregulation, and clear signals that laws would not he enforced.
Galbraith is incisive, quick, but also thorough. Such an arrangement would enable him to concentrate on speculation which after all, is the business of a speculator. The first and last lines of Black Friday are 'When Black Friday comes', 'I'll guess I'll change my name. The years after Bush v. The idea of the investment trust is an old one, although, oddly enough, it came late to the United States.