1929: Inside the Greatest Crash in Wall Street History
20 points
3 days ago
| 5 comments
| nybooks.com
| HN
softwaredoug
34 minutes ago
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“The Great Depression: A Diary” is a great day by day first person account of someone living through the depression. It’s a great reminder how we don’t have a monopoly on insane politics

https://www.goodreads.com/book/show/6601224-the-great-depres...

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hydrogen7800
23 minutes ago
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I read this more than 10 years ago, so I don't remember a lot, but I do appreciate it for being the only account of the crash that doesn't have historical hindsight. It was interesting to hear someone trying to make sense of things on a near daily basis during the fog of uncertainty. It makes me want to find other such accounts of historical events without the inevitable-seeming cause and effect sequence of events you normally read about history.
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mitchbob
3 days ago
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> Andrew Ross Sorkin’s history of the 1929 stock market crash reminds us that financial bubbles are inevitable—and that another one may be about to pop.

https://archive.ph/GQeez

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simonsarris
1 hour ago
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He's made a lot of predictions: Apple will acquire Disney (recent), Microsoft will acquire Yahoo (mid 2000s), we'd have a "hard landing" in 2023/2024. None of these have turned out true. It's especially hard to meaningfully evaluate claims of crashes.
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MyHonestOpinon
1 minute ago
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Well, if I remember correctly Microsoft was very close to acquire Yahoo.

So it means it made sense to do it. Even if you correctly predict the economic, political currents, sometimes it is up to the actions of individuals that are very hard to predict.

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bitwank
1 hour ago
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Even if there was a 29 style crash, assuming you can hold for 20 or so years, less than the length of most home mortgages, you would still come out ahead. Not that it wouldn’t be painful for seniors and those who are middle age and not well diversified, but it’s hard to not see a US crash as a buying opportunity for international capital.
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boelboel
18 minutes ago
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A 29 style crash would be accompanied by a 29 crash in other countries. Besides most countries (besides Argentine) suffered, some more some less. The US market wouldn't necessarily be a bigger bargain than others.
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abraxas
37 minutes ago
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Most people who have significant savings in the stock market don't have the lifespan to ride out a 25 year recovery cycle. And those young enough to have the time usually don't have much in savings yet.
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bigstrat2003
19 seconds ago
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I guess it depends what you call "significant". I am 40 and have over 200k in my 401k, which I think is significant. And I could most likely expect to live 25 more years. If there's a crash tomorrow, my money wouldn't grow the way I am hoping it will over that time, but I should come out ok considering that I will be getting discount stocks while the market recovers.
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altmanaltman
41 minutes ago
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A 1929-style crash was accompanied by mass unemployment (~25%), meaning people were often forced to sell at the bottom precisely because they had no income. You can't "hold" if you're selling assets to eat. Also just because it recovered in the past doesn't mean it'll follow the same trajectory in the future.
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bombcar
11 minutes ago
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Because we know of the '29 crash, the next one will always be different. Arguably the GFC was way worse, but way different.
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OrangePilled
21 minutes ago
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I saw this book at a local library and I set it back down. [0]

> Beyond the intrinsic difficulty of revivifying the top-hatted dead, Sorkin’s rendition is limited by his desire to frame 1929 as a story about people. His focus on individuals comes at the expense of analysis—particularly of the deeper economic forces that made the crash likely, if not inevitable. Sorkin is more interested in how the crisis felt than why it happened. He has little to say about why the government failed to take any meaningful steps to prevent it—or why, unlike in 2008, its responses failed so spectacularly.

Emphasis added.

The review here seems intent on filling in the gaps it finds the author to have left himself.

This one reads more critically:

"1929: Sorkin Rounds Up the Usual Suspects"

> [...] Sorkin stages morality play rather than history. He also helps set policymakers up for the kind of grand theatrical action they are inclined to take anyhow whenever markets turn down. In other words, another 1933- or 2008-style rescue: flooding the market with liquidity, and stringing up wrongdoers and even the better Wall Streeters, such as the Mitchells whom Sorkin seeks to rehab. The same subpar results are likely to follow.

[...]

> Were 1929 a documentary produced by Michael Moore, its suggestions would not matter. We are accustomed to illogic in television. But 1929 presents itself as the researched book Sorkin wants it to be. It therefore claims the authority that such books can carry.

> Sorkin quotes H. G. Wells, who called human history “a race between education and catastrophe.” Indeed, indeed. But for education to beat catastrophe, that education must be a little more thorough.

https://www.coolidgereview.com/articles/1929-crash-sorkin

[0]: I was returning Stalin: The Glasnost Revelations by Walter Lacquer (1990). I found its research and ensuing narrative worth the effort.

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tartoran
1 hour ago
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We may see it again soon
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rvz
10 minutes ago
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There you go, that is the clue.

This is why I have always said every year to not have any "new years resolutions" and instead prepare for 2030. [0]

[0] https://news.ycombinator.com/item?id=42563239

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jmclnx
1 hour ago
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I hope not, my parents were teenagers at the time, my fathers life was terrible back then, he had to join the CCC to survive and to help out his family.

He had told me working with the CCC was not a bed of roses and he saw many terrible accidents to some of the workers. But he was glad it existed.

Also, back then, I believe people were on average stronger and more resilient people alive today. Having such a crash will be far worse for society then 1929.

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suzzer99
58 minutes ago
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Yes, nothing in recent history gives me any faith that we'll all pull together in the face of economic hardship - as opposed to letting charlatan politicians put all the blame on already marginalized scapegoats.
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vjvjvjvjghv
44 minutes ago
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“ I believe people were on average stronger and more resilient people alive today”

People step up very quickly once they have to face a difficult situation. A while ago I talked to Ukrainian about their war. He said some years ago he couldn’t have imagined living in a war zone but once it gets started you get used very quickly to drones flying over you, buildings in your town bring blown up, losing power for days, hiding in the basement. It very quickly becomes normality.

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readthenotes1
55 minutes ago
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You sound like an old curmudgeon. Give me my avocado toast and exotic coffee carefully prepared in a French press and I can supervise other people clearing trails all day long (via Zoom--we're never so desperate as to need unnecessary sun exposure). Of course, I need my rebalancing hours of yoga in the morning and afternoon and personal time to ensure work-life balance.
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iainctduncan
27 minutes ago
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... "so far."
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