Book Review: Rainbow’s End, The Crash of 1929
Many reporters, economists, and wanna be economists are comparing the recent stock market crash to the famous crash of 1929. The crash that marked the start of the Great Depression. The crash that changed America. But is it really the same?
Knowing little about the 1929 crash I haven’t really been able to make the parallel myself. I’ve been stuck listening when I’d love to offer my own opinions. So a few weeks back when I was, surprise surprise, waiting in an airport I stumbled across a used book with a title staring back at me. Rainbow’s End: The Crash of 1929
I decided to buy the book and begin to read it on my 14 hour journey back to Hawaii from the mainland. The back cover seemed to have rave reviews (which rarely happens on a book cover) and the thought of finally figuring out what caused the stock market crash was intriguing enough.
Turns out it was an amazing book. It reads like a story rather than restating facts in dry collegiate language. It kept me reading and interested in something that most would find a boring subject were it not strikingly similar to todays events.
The author, Maury Klein, writes Rainbow’s End
He focuses on one big player, with big ideas, Billy Durant who helped create holding companies like GM to brand different cars and build huge conglomerates. Durant lived the American dream and Klein captures the most pivotal moments of that dream.
He goes on to talk about how banks began to transform. He talks about how America used to be a country of men and women who saved, and worked hard to save some more, but began to turn to country that used credit to purchase things. (sound familiar) Fueled by the automobile, large appliances, and other luxuries, America began to buy things now on want rather than on necessity.
He talks about how banking giant of the time National City began to offer trading of securities all over the US, not just to the wealthy in New York and Chicago. How citizens were talked into buying on margin, and that the market would always go up. How the government sat by as banks were allowed to offer whatever they wanted to customers, manipulate stock as they saw fit, and get away with a lot that today would land you in jail.
The parallels, as you can read from above, are amazingly similar to today. The 20’s built into an enormous bubble of lavish spending that burst in late 1929. While Klein doesn’t go into detail much after the crash, he does talk about Hoovers unfortunate taking over of a market on the verge of disaster and his real inability to use the government to overcome a widespread depression.
If you have any interest in the stock market of today, and wish to learn from the past, read this book
Comments
Comment from Atniz
Time: November 29, 2008, 12:11 am
We can always learn something from the past. This book sounds for me. I think all economist or bloggers who write about bad economy should read this book. Great find.
Comment from Alpha Ecological
Time: December 2, 2008, 12:43 pm
I don’t know why we don’t learn from history…we just seem to like to repeat it. Thanks for the post I’ve seen that book before and I may actually pick it up now that I know it wont put me to sleep. : ) Thanks
Comment from stupid society
Time: December 5, 2008, 11:25 pm
Bailing out failing businesses with billions of taxpayer dollars will only make things worse.
Comment from Andrei Stanciu
Time: December 23, 2008, 8:50 am
lol another book trying to tell us how our current global melt down is better then the one in 1929
Comment from Orville
Time: April 11, 2009, 4:03 am
all i can say is, there is a rainbow always after the rain. that is my opinion
Comment from muzik dinle
Time: July 27, 2009, 10:29 pm
Bailing out failing businesses with billions of taxpayer dollars will only make things worse.
Comment from Art
Time: July 30, 2009, 11:37 pm
very nice book, we should learn a lessons from it
Comment from Printing
Time: August 19, 2009, 8:25 am
Great post!!! I have defiantly bookmarked your site..good work Keep it up..
Comment from gilbert
Time: August 26, 2009, 10:52 am
This is a great book that does a great job explaining WHY the Depression happened, and not just what happened. Klein’s information and presentation make this one of the better books on a topic that is often misunderstood.
Comment from Daily Tech News
Time: September 20, 2009, 10:07 pm
Interesting looking book. I like the review and I think the book might be worth checking out at the library.
Comment from Tiens estore
Time: November 12, 2009, 12:39 am
This book is very ineeresting and there are many things we can learn from it.I don’t know why people don’t learn from past events.
Comment from Magento Development India
Time: November 20, 2009, 2:49 am
very nice informative book, It teach us very much. Keep writing guy..
Comment from nasdaq futures
Time: November 25, 2009, 2:25 am
“Hi..!!
Thanks for this article it’s rally nice i think we can learn Many things from this book, I think we must learn a lessons from it not to reapat again “
Comment from shimano reels
Time: December 28, 2009, 3:16 am
Great post.it teaches us lessons which we will be given due weighted
Comment from printing
Time: January 4, 2010, 5:09 am
Where can I find an online downloadable copy of a poem, At Rainbow’s End”?
Comment from job
Time: January 29, 2010, 5:37 pm
There is “Rainbow’s End, The Crash of 1929″ on my shelf and it’s the very good book.
Comment from healthy tea
Time: March 11, 2010, 6:49 pm
The many technological advances depicted in the novel suggest that the world is undergoing ever-increasing change, perhaps destined for a technological singularity, a recurring subject in Vinge’s writing (both fiction and non-fiction)
Comment from study in Australia
Time: March 26, 2010, 8:02 pm
I”m not familiar with the book but i can say that this kinds of books are one of the thing we must read because it teaches as something from the mistakes of before.
Comment from Web design Dubai
Time: March 29, 2010, 4:58 am
This book is a worth to read for. Because we can learn a lot from the past.
Comment from Limoges Boxes
Time: April 8, 2010, 7:13 pm
This is an interesting book. I would love to read this one. I’m sure it is full of story and lessons.
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Time: May 14, 2010, 9:10 am
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Comment from Global
Time: May 23, 2010, 7:09 pm
This book is very well written loaded with real-life history. This book is one of the best book to learn about the market and enjoy it too!
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Time: May 24, 2010, 10:34 pm
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Comment from Used Trailers
Time: June 7, 2010, 4:10 am
This book is a worth to read for. Because we can learn a lot from the past.
Comment from Security DVRs
Time: June 17, 2010, 2:51 am
A compulsively readable history of the stock market crash of 1929.
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Comment from pregnancy signs
Time: June 18, 2010, 10:57 pm
I like the book review of Rainbow’s End, The Crash of 1929.I really hope it is good.I will definitely buy it.
Comment from acai
Time: June 27, 2010, 11:03 pm
Very informative blog post. I think we should learn a lot from our own history.
Interesting looking book. I like the review and I think the book might be worth checking out at the library. You please keep updating like that.
Comment from Sheing@gift cards
Time: June 28, 2010, 10:11 pm
I have always been an avid reader. I was not able to get my hands on this book. Based on the comments I got here, I will check this out. The review was written intelligently.
Comment from Stript Makeup
Time: July 21, 2010, 10:46 am
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Time: July 31, 2010, 12:33 am
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Comment from used tires
Time: July 31, 2010, 11:34 pm
Being that I am currently studying finance, I will have to read this book for sure from your take of it, it sounds like a great read. But yeah my take on it is that what we’ve seen isn’t comparable to what happened in 1929.
Till then,
Jean
Comment from car audio electronics
Time: August 2, 2010, 1:22 am
Rainbows End is a 2006 science fiction novel by Vernor Vinge. The many technological advances depicted in the novel suggest that the world is undergoing ever-increasing change.
Comment from Tej Kohli
Time: August 11, 2010, 12:12 am
I will Read it buddy Soon and then i will give you response how
Comment from Nokia
Time: August 17, 2010, 8:41 pm
According to me we should read something from our mistakes.This a beautiful review. The book Rainbow’s End, The Crash of 1929 is too good .
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Time: August 30, 2010, 1:48 am
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Comment from online sites
Time: September 1, 2010, 9:02 pm
The book offers a vibrant picture of a world full of plungers, powerful bankers, corporate titans, millionaire brokers, and buoyantly optimistic stock market bulls. We meet Sunshine Charley Mitchell, head of the National City Bank, powerful financiers Jack Morgan and Jacob Schiff, Wall Street manipulators such as the legendary Jesse Livermore,
Comment from Shane Sheibani
Time: November 28, 2008, 3:50 pm
people don’t save up for down payments, much less outright buying of houses and cars. fact is that if there was no such thing as credit the whole country would be 1000 percent better off in the long run.
The worst problem in our economy is people buying into the idea that they can get just a little further down the road by getting just one more credit card and living off it for awhile, it is surly a road to nothing but disaster !