The Great Crash

NewMexiKen is reading John Kenneth Galbraith’s classic The Great Crash, the story of the stock market crash of 1929, first published in 1954. (I have the 1961 edition.) It’s just 200 pages and worth your time.

History does not repeat itself, but the parallels between 1929 and 2008 are striking — financial speculation run rampant, naysayers shushed or ignored, reassurances abundant, new types of financial instruments, leverage maximized, regulation non-existent. And then the bubble burst, starting in September particularly and accelerating in October. Fascinating.

One thought on “The Great Crash”

  1. Funnily enough, I also read it about a month or so ago. It’s nice to see a readable book on economics not written by the Freakonomics guys.

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