Summary of John Kenneth Galbraith's The Great Crash 1929

Everest Media

Description

Please note: This is a companion version & not the original book.
Sample Book Insights:
#1 The 1920s were a good time in America. Production and employment were high and rising, wages were not going up much, but prices were stable. Many people were still very poor, but more people were comfortably well-off or rich than ever before.
#2 The American people of the 1920s were displaying an inordinate desire to get rich quickly with a minimum of physical effort. This was demonstrated by the Florida real estate boom, which was built on the assumption that the whole peninsula would be populated by holiday-makers and sun-worshippers in a new and remarkably indolent era.
#3 The pursuit of effortless riches brought people to Florida in increasing numbers from 1925 to 1926. However, in the spring of 1926, the supply of new buyers began to fail, and the boom was not left to collapse of its own weight.
#4 The classic pattern of the end of a boom is for people to refuse to admit that it is over. This is also in accordance with the classic pattern, as the end had come in Florida in 1925, when bank clearings in Miami were $1,066,528,000.

Sujets

• Economic history

Informations

• Publié par: Everest Media LLC
• Date de parution: 27 avril 2022
• Nombre de lectures: 0
• EAN13: 9781669393641
• Langue: English
• Poids de l'ouvrage: 1 Mo

Extrait

Insights on John Kenneth Galbraith's The Great Crash 1929
Contents Insights from Chapter 1 Insights from Chapter 2 Insights from Chapter 3 Insights from Chapter 4 Insights from Chapter 5 Insights from Chapter 6 Insights from Chapter 7 Insights from Chapter 8 Insights from Chapter 9
Insights from Chapter 1

#1

The 1920s were a good time in America. Production and employment were high and rising, wages were not going up much, but prices were stable. Many people were still very poor, but more people were comfortably well-off or rich than ever before.

#2

The American people of the 1920s were displaying an inordinate desire to get rich quickly with a minimum of physical effort. This was demonstrated by the Florida real estate boom, which was built on the assumption that the whole peninsula would be populated by holiday-makers and sun-worshippers in a new and remarkably indolent era.

#3

The pursuit of effortless riches brought people to Florida in increasing numbers from 1925 to 1926. However, in the spring of 1926, the supply of new buyers began to fail, and the boom was not left to collapse of its own weight.

#4

The classic pattern of the end of a boom is for people to refuse to admit that it is over. This is also in accordance with the classic pattern, as the end had come in Florida in 1925, when bank clearings in Miami were $1,066,528,000.

#5

The stock market boom of the nineteen-twenties began in the last six months of 1924, when stock prices were low and yields favorable. In the last six months of 1925, prices began to rise, and the increase was continued and extended through 1926.

#6

The return to the gold standard in 1925 was the result of a visit by three eminent Europeans: Montagu Norman, the Governor of the Bank of England, Hjalmar Schacht, the Governor of the Reichsbank, and Charles Rist, the Deputy Governor of the Bank of France. They urged an easy money policy in America.

#7

The explanation that people will always speculate if they can get the money to do so is not true. There were times before and there have been long periods since when credit was plentiful and cheap, and when speculation was negligible.

#8

The market began to rise in 1928, and by March 12, Radio, a speculative symbol of the time, had gained 18 points. On the following day, it opened 22 points above the previous close. Then it lost 20 points on the announcement that the trading in the stock was being investigated by the Exchange.

#9

The big men were believed to have put the market up in March 1928. They were John J. Raskob, the organizer of General Motors, and the seven Fisher brothers, who had come to Wall Street with the great fortune they had realized from the sale of the Fisher-body plants.

#10

The market continued to drop after the election, and by October, it was clear that the bull market had ended. People remained unperturbed when, on September 17, Roger W. Babson told an audience in Wellesley, Massachusetts, that if Smith were elected with a Democratic Congress, we would likely have a business depression in 1929.

#11

The market did not react well to Hoover’s election. On November 7, the day after the election, there was a victory boom and the market leaders climbed 5 to 15 points. However, the market steadied and came back the next day.

#12

The only reward to ownership in a boom is the increase in values. The use, enjoyment, and long-term worth of a property are irrelevant in the face of a demand for an early rise in price. The only way for a speculator to benefit from this is to concentrate on speculation, which is his job.

#13

The machinery by which Wall Street separates