Historical record of the time leading up to the great crash of 1929 and the immediate aftermath.
What caused it according to Galbraith:
- Skewed distribution of income, where the top 5% got 30% of the income.
- Bad banking practices, that would work out well if the growth would continue.
- Unsound corporate structures, which allowed companies to amass huge amounts of debt with little equity contributions by the shareholders.
- Poor US foreign balance. US at the time was the largest creditor nation and was imposing restrictions on trade.
- Poor economic intelligence of the retail investor, misuse of leverage etc.
A man once said that history does not repeat itself but it rhymes.
Personal score: 6/10