"The Great Crash 1929"

Paper Summary:

This paper shows how in his book "The Great Crash 1929", John Kenneth Galbraith, a leading economist, examines the meaning of the stock market crash of 1929 which has become a persistent fear for Wall Street ever since. It looks at the events leading up to the crash and details the aftermath. It compares recent downturns in the market today to the Great Crash and discusses how a crash such as the one that occurred in 1929 is simply impossible given the current structure of the market and of governmental and other controls. It analyzes how Galbraith finds that what happened in 1929 was not an isolated action and that earlier in history there had been other speculative splurges, beginning in 1637 when Dutch speculators invested in tulip bulbs.

From the Paper:

"There were events prior to the Great Crash showing that the market might draw back. Galbraith cites one such in June of 1928 when in fact the death of the bull market was predicted, but this prediction was premature. Herbert Hoover would be elected President in 1929, and he had been concerned about the rising tide of speculation for some time. When he was Secretary of Commerce, he had tried to get the market under control. His attitude was kept secret, however, so his election did not cause the panic it would have otherwise. Ownership of property was rewarded by this time only in terms of an early rise in price. All other uses were irrelevant. Speculation in the market provided early returns and less responsibility, and people were buying stocks on margin so they could have the increase in price without the costs of ownership."

More papers on "The Great Crash 1929":

• Analytical Essay # 5879 : "John Kenneth Galbraith's 'The Great Crash: 1929'"
• Analytical Essay # 5606 : "The Great Crash: 1929"
• Book Review # 108569 : "The Great Crash: 1929," by John Kenneth Galbraith"

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