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Galbraith writes with great wit and erudition about the perilous actions of investors and the curious inaction of the government. He notes that the problem wasn't a scarcity of securities to buy and sell: "The ingenuity and zeal with which companies were devised in which securities might be sold was as remarkable as anything." Those words become strikingly relevant in light of revenue-negative start-up companies coming into the market each week in the 1990s, along with fragmented pieces of established companies, like real estate and bottling plants. Of course, the 1920s were different from the 1990s. There was no safety net below citizens, no unemployment insurance or Social Security. And today we don't have the creepy investment trusts--in which shares of companies that held some stocks and bonds were sold for several times the assets' market value. But, boy, are the similarities spooky, particularly the prevailing trend at the time toward corporate mergers and industry consolidations--not to mention all the partially informed people who imagined themselves to be financial geniuses because the shares of stock they bought kept going up. --Lou Schuler, Amazon.com
What Actually Happened in 1929?, 2004-07-05
Having recently lived through the crash of the dot-com stocks, I thought it was a particularly appropriate moment to reread John Kenneth Galbraith's famous history of the stock market crash of 1929 in the United States. Professor Galbraith's final words prove to be prophetic as he suggests that as soon as the lessons of 1929 are forgotten, the speculative excesses that led to that debacle will recur. I am sure that when the dot-bomb experience is forgotten, it will be repeated with some new class of speculation in some future generation.

With the recent experience of seeing a market mania, I came away more impressed with this book than before. Professor Galbraith does a fine job of capturing the psychology that builds into and sustains a mania. He also writes like a novelist rather than like an economist. That talent makes the message easy to grasp and appreciate.

I was also impressed by how our popular perceptions of 1929 are so often wrong. For example, most people believe that many "broken" speculators committed suicide. Although some did, there was no significant rise in the suicide rate compared to a general trend in that direction.

Economists often like to fault the Federal Reserve for the crash. That blame seems somewhat misplaced when you learn that there was very little government debt that the Fed could repurchase to create liquidity. Had the Fed acted differently, the crash might have come a little sooner and not been quite so severe . . . but the fundamentals would probably not have changed too much.

Another misperception is that everyone was speculating. By even the most generous measures, the speculators probably never numbered over a million people.

Although this is a history, Professor Galbraith takes on the economic question of how the crash contributed to the Depression. Although we know very little about the economic details of 1929, I was impressed by the point about how much consumer spending was concentrated in the wealthiest people. As they lost vast sums, both spending for consumer goods and savings for capital were decimated. With the broader income distribution of today, such a cataclysm would not be so harmful (as we saw in the aftermath of the dot-com crash).

There is an excellent parallel discussion of the land boom in Florida earlier in the 1920's that is very rewarding. I was intrigued by the ways that ever increasing ways of extending leverage were created so that both bubbles could climb higher. In Florida, people didn't actually buy the land. They bought options to buy the land, and traded those. In the stock market, holding companies sold stock and then floated new holding companies. These were capitalized with common stock, preferred and debt so that all of the appreciation would accrue to the common holders. Naturally, the opposite occurred on the way down. Many stocks fell by over 99 percent, as a result.

Everyone who is tempted to buy any item primarily because it is thought to represent an opportunity for a quick buck should read this book.

Look for true value in all that you do!

Gladwell hopes to convince us that our snap judgements and first impressions can be educated and controlled so instead of merely praising the mysterious process of instinct and intuition he is interested in those moments when our instincts betray us, the situations where our powers of rapid cognition can go awry, where we fail to read the signs. Most disturbing of all is the degree to which culturally determined preconceptions and prejudices control us. Without reducing matters to racism and sexism Gladwell shows us that there are facts about people's appearance—their size or shape or color or sex—that can trigger a very similar set of powerful associations which explains why utter mediocrities (such as U.S. President Warren Harding) can sometimes end up in positions of enormous responsibility; or why tall people earn substantially more than their shorter colleagues; or why car salesmen unconsciously charge prices according to race and gender.

Gladwell's conversational prose style is concise, informative, accessible and entertaining. The stories, scientific findings and psychological tests are consistently surprising whether he is dealing with speed-dating, record promotions, police shoot-outs, the human face, or the reasons doctors get sued. --Larry Brown END
A new way of seeing, 2008-07-17
In the blink of an eye we gather huge amounts of information. The author, Gladwell, likens our brains to giant computers capable of processing lots of data in a flash. I found it fascinating how we can use this information either for survival purposes and / or we can apply our intuitive knowledge to any given situation. The author coins the term "thin slicing" to explain the process of applying one's intuition. He states that we are often suspicious of trusting this intuition because it's so quick and easy, even when it's on target. He relays experiments where instantaneous "thin slicing" has amazing results, sometimes in life and death situations, but also explains what can cause the skillto fall short. The reason often being that we are not truly living in the present moment.

Two books that easily guide one into the present moment are Ariel and Shya Kane's "Being Here: Modern Day Tales of Enlightenment" and "How To Create A Magical Relationship". These refreshingly fun and practical books effortlessly get the reader into the present moment where enlightenment resides. In an instant life can become brilliant and magical. Both of these intelligent books have shown me that life needn't be hard work in order to be amazing.

The subject is the life and career of one of the most revered men in the western hemisphere, Warren Buffett (an advisor to new US President Barack Obama) – despite the fact that his name may not be known to most of the general public. Buffett’s story is one that currently has resonances for all of us: a remarkable financial success story. The name of this investor from Omaha is spoken of with admiration by all who know him, despite the fact that he has never written a book on his career or the secrets of his business success. However, he has been persuaded to allow Alice Schroeder to spend time with him and those with whom he works to investigate his business triumphs, his opinions, his mistakes (Buffett is rather winning in admitting to several of the latter – how common is that in his profession?) -- and what emerges is a totally comprehensive biography of the man known throughout the world as ‘The Oracle of Omaha’.

What is most revealing about the picture of the man that emerges from these pages (and Schroeder had access not just to her subject and his business associates but also his wife, children and friends) is that we meet a man of intellect – of course – but also of humanity and understanding, with a philosphy and worldview that is both judicious and principled. In an era in which those in Buffet’s profession are more prone to excoriation than praise, the man we encounter here has a sane and clear-eyed philosophy of life and an attitude to business success that is generously instructive -- and inspiring. --Barry Forshaw
best insight into buffetts life so far, 2008-10-18
This is the best insight into the sages life that you will probably ever get. I think i have read every book written about buffett so far. This one tells you more about what makes up this truely amazing value investor.

Its a long read but worth every bit. I think alice schroeder has done an excellent job.