Galbraith dies
Professor John Kenneth Galbraith died over the weekend aged 97. A brilliant Keynesian economist and leading proponent of political liberalism and progressive values, he wrote more than 40 books and was known for his caustic wit and elegant prose which made complex subject matter accessible. He was also known to be a keen observer of the financial markets and theorized that crashes were a consequence of human nature.
"After the October 1987 stock market plunge, when the Dow Jones industrial average tumbled 22% in a single day, Galbraith drew comparisons to the epic crash of 1929."
"Avarice on the part of myopic investors, he said, was a recurring theme. "I'm inclined to think that fools and their money will always be separated," he said."
A prophet let down by history
"His 1958 best-seller The Affluent Society, a mocking critique of Mr and Mrs Middle America in their "mauve and cerise, air-conditioned, power-steered car" laid out his theory that modern life is dictated by oligopolies telling people what to buy through saturation advertising - and damn the public good."
"The family which takes its mauve and cerise, air-conditioned, power-steered and power-braked car out for a tour passes through cities that are badly paved, made hideous by litter.... They ... spend the night at a park which is a menace to public health and morals. Just before dozing off on an air-mattress, beneath a nylon tent, amid the stench of decaying refuse, they may reflect vaguely on the curious unevenness of their blessings. Is this, indeed, the American genius?"
"He was the prophet of boom and bust, recounting cycles of human folly down the ages. The Great Crash: 1929 is an indictment of US capitalist elites, an expose of the market group-think and collusion that entrapped the unwary in the Ponzi scheme of speculation on margin."
"But if his analysis does not stand the test of time, his insights into mass psychology certainly do. As the US economy digs deeper into debt than ever, one might dwell on his Scottish low-church warning that there is no such thing in economics as a free lunch."
"After the October 1987 stock market plunge, when the Dow Jones industrial average tumbled 22% in a single day, Galbraith drew comparisons to the epic crash of 1929."
"Avarice on the part of myopic investors, he said, was a recurring theme. "I'm inclined to think that fools and their money will always be separated," he said."
A prophet let down by history
"His 1958 best-seller The Affluent Society, a mocking critique of Mr and Mrs Middle America in their "mauve and cerise, air-conditioned, power-steered car" laid out his theory that modern life is dictated by oligopolies telling people what to buy through saturation advertising - and damn the public good."
"The family which takes its mauve and cerise, air-conditioned, power-steered and power-braked car out for a tour passes through cities that are badly paved, made hideous by litter.... They ... spend the night at a park which is a menace to public health and morals. Just before dozing off on an air-mattress, beneath a nylon tent, amid the stench of decaying refuse, they may reflect vaguely on the curious unevenness of their blessings. Is this, indeed, the American genius?"
"He was the prophet of boom and bust, recounting cycles of human folly down the ages. The Great Crash: 1929 is an indictment of US capitalist elites, an expose of the market group-think and collusion that entrapped the unwary in the Ponzi scheme of speculation on margin."
"But if his analysis does not stand the test of time, his insights into mass psychology certainly do. As the US economy digs deeper into debt than ever, one might dwell on his Scottish low-church warning that there is no such thing in economics as a free lunch."
posted by mktcrash at 9:15 PM
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