In 1929: Inside the Greatest Crash in Wall Street History–and How It Shattered a Nation, author Andrew Ross Sorkin retells the story of one of America’s greatest financial catastrophes. This book places the reader on the trading floor as the speculative boom of the mid-twenties collapses and the nation faces the onset of the Great Depression. Sorkin draws on newly accessible documents and minutes from board meetings to chart how debt, overconfidence, and poor governance combined to bring about the stock market crash. Sorkin traces the stories of several individuals, such as Sunshine Charley, throughout the market freefall and its aftermath.
The book’s fast pace also stretches beyond 1929, covering the run-up to the market crash and subsequent aftermath with equal treatment. While many argue the crash signaled the start of the Great Depression, Sorkin points out that it was just one signal of many that contributed to the financial disaster that gripped the world for much of the 1930’s. German debt, tariff protectionism, and a general carefree attitude to regulation all added fuel to the fire. Sorkin traces the bad decisions made by many both inside and outside of government in contributing to the financial mess that occurred nearly 100 years ago.
1929 is a timely reminder that cycles of speculation repeat themselves (think .com bubble, the real estate pop in the 2000’s, and the meme stock bubble just several years ago) and that the belief that “this time is different” can spectacularly backfire. Sorkin has produced both a cautionary tale and a richly textured history. For anyone interested in markets, power, or the forces that shape economic collapse, this book warrants a place on the shelf.
MY RATING: 4.5
