Market Crash Quotes

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His big claim to fame was that the Golden Fleece—that magical sheepskin rug I'm related to—ended up in his kingdom, which made the place immune to disease, invasion, stock-market crashes, visits from Justin Bieber and pretty much any other natural disaster.
Rick Riordan (Percy Jackson's Greek Gods)
They said the stock market crashed, or something, but since I'm deaf I didn't hear it (ha-ha).
Stephen King (The Stand)
Something is profoundly wrong with the way we live today. For thirty years we have made a virtue out of the pursuit of material self-interest: indeed this very pursuit now constitutes whatever remains of our sense of collective purpose. We know what things cost but have no idea what they are worth. We no longer ask of a judicial ruling or a legislative act: Is it good Is it fair Is it just Is it right Will it help bring about a better society or a better world Those used to be the political questions even if they invited no easy answers. We must learn once again to pose them. The materialistic and selfish quality of contemporary life is not inherent in the human condition. Much of what appears “natural” today dates from the 1980s: the obsession with wealth creation the cult of privatization and the private sector the growing disparities of rich and poor. And above all the rhetoric that accompanies these: uncritical admiration for unfettered markets disdain for the public sector the delusion of endless growth. We cannot go on living like this. The little crash of 2008 was a reminder that unregulated capitalism is its own worst enemy: sooner or later it must fall prey to its own excesses and turn again to the state for rescue. But if we do no more than pick up the pieces and carry on as before we can look forward to greater upheavals in years to come.
Tony Judt (Ill Fares the Land)
I was having dinner…in London…when eventually he got, as the Europeans always do, to the part about “Your country’s never been invaded.” And so I said, “Let me tell you who those bad guys are. They’re us. WE BE BAD. We’re the baddest-assed sons of bitches that ever jogged in Reeboks. We’re three-quarters grizzly bear and two-thirds car wreck and descended from a stock market crash on our mother’s side. You take your Germany, France, and Spain, roll them all together and it wouldn’t give us room to park our cars. We’re the big boys, Jack, the original, giant, economy-sized, new and improved butt kickers of all time. When we snort coke in Houston, people lose their hats in Cap d’Antibes. And we’ve got an American Express card credit limit higher than your piss-ant metric numbers go. You say our country’s never been invaded? You’re right, little buddy. Because I’d like to see the needle-dicked foreigners who’d have the guts to try. We drink napalm to get our hearts started in the morning. A rape and a mugging is our way of saying 'Cheerio.' Hell can’t hold our sock-hops. We walk taller, talk louder, spit further, fuck longer and buy more things than you know the names of. I’d rather be a junkie in a New York City jail than king, queen, and jack of all Europeans. We eat little countries like this for breakfast and shit them out before lunch.
P.J. O'Rourke (Holidays in Hell: In Which Our Intrepid Reporter Travels to the World's Worst Places and Asks, "What's Funny about This?")
As for Ares's other sacred grove, the one in Colchis, things were run a little differently over there. The king was a guy named Aeetes. (As far as I can figure, that's pronounced "I Eat Tees.") His big claim to fame was that the Golden Fleece - that magical sheepskin rug I'm related to - ended up in his kingdom, which made the place immune to disease, invasion, stock market crashes, visits from Justin Bieber, and pretty much any other natural disaster.
Rick Riordan (Percy Jackson's Greek Gods)
In short, the 1870s illustrated the force of the remark that antisemitism rises and falls in inverse relationship to the stock market. In that decade, when the market crashed, bigotry rose.
Peter Hayes (Why?: Explaining the Holocaust)
Here is an all-too-brief summary of Buffett’s approach: He looks for what he calls “franchise” companies with strong consumer brands, easily understandable businesses, robust financial health, and near-monopolies in their markets, like H & R Block, Gillette, and the Washington Post Co. Buffett likes to snap up a stock when a scandal, big loss, or other bad news passes over it like a storm cloud—as when he bought Coca-Cola soon after its disastrous rollout of “New Coke” and the market crash of 1987. He also wants to see managers who set and meet realistic goals; build their businesses from within rather than through acquisition; allocate capital wisely; and do not pay themselves hundred-million-dollar jackpots of stock options. Buffett insists on steady and sustainable growth in earnings, so the company will be worth more in the future than it is today.
Benjamin Graham (The Intelligent Investor)
When the stock market crashed, Franklin Roosevelt got on the television and didn't just talk about the princes of greed. He said, 'Look, here's what happened.
Joe Biden
After the stock market crash, some New York editors suggested that hearings be held: what had really caused the Depression? They were held in Washington. In retrospect, they make the finest comic reading. The leading industrialists and bankers testified. They hadn’t the foggiest notion what had gone bad. You read a transcript of that record today with amazement: that they could be so unaware. This was their business, yet they didn’t understand the operation of the economy. The only good witnesses were the college professors, who enjoyed a bad reputation in those years. No professor was supposed to know anything practical about the economy.
Studs Terkel (Hard Times: An Oral History of the Great Depression)
This malignant persistence since September 11th is the biggest surprise of all. In previous decades, sneak attacks, stock-market crashes, and other great crises became hinges on which American history swung in dramatically new directions. But events on the same scale, or nearly so, no longer seem to have that power; moneyed interests may have become too entrenched, elites too self-seeking, institutions too feeble, and the public too polarized and passive for the country to be shocked into fundamental change.
George Packer
I heard a man who worked in a casino say that no one gets ruined by losing, they get ruined by trying to win back the money they lost. Is that what you mean? Is that why the stock market and housing market crash?
Fredrik Backman (Anxious People)
The nearly perfect historical correlation between increasing productivity and rising incomes broke down: wages for most Americans stagnated and, for many workers, even declined; income inequality soared to levels not seen since the eve of the 1929 stock market crash; and a new phrase—“jobless recovery”—found a prominent place in our vocabulary.
Martin Ford (Rise of the Robots: Technology and the Threat of a Jobless Future)
The attacks did two things really well: ensured there was a war, a big one—and crashed the stock market.
A.G. Riddle (The Atlantis Gene (The Origin Mystery, #1))
Trump only cares how the covid-19 pandemic affects him, his bank account, and his chances of getting re-elected.
Oliver Markus Malloy (American Fascism: A German Writer's Urgent Warning To America)
Starting in 1792 with George Washington, there were financial crises every ten to fifteen years. Panics, bank runs, credit freezes, crashes, depressions. People lost their farms, families were wiped out. This went on for more than a hundred years, until the Great Depression, when Oklahoma turned to dust. "We can do better than this." Americans said. "We don't need to go back to the boom-and-bust cycle." The Great Depression produced three regulations: The FDIC-your bank deposits were safe. Glass-Steagall-banks couldn't go crazy with your money. The SEC-stock markets would be tightly controlled. For fifty years, these rules kept America from having another financial crisis. Not one panic or meltdown or freeze. They gave Americans security and prosperity. Banking was dull. The country produced the greatest middle class the world had ever seen.
Elizabeth Warren
Not even much survives as memory. Many of the most notable names of the summer—Richard Byrd, Sacco and Vanzetti, Gene Tunney, even Charles Lindbergh—are rarely encountered now, and most of the others are never heard at all. So it is perhaps worth pausing for a moment to remember just some of the things that happened that summer: Babe Ruth hit sixty home runs. The Federal Reserve made the mistake that precipitated the stock market crash. Al Capone enjoyed his last summer of eminence. The Jazz Singer was filmed. Television was created. Radio came of age. Sacco and Vanzetti were executed. President Coolidge chose not to run. Work began on Mount Rushmore. The Mississippi flooded as it never had before. A madman in Michigan blew up a school and killed forty-four people in the worst slaughter of children in American history. Henry Ford stopped making the Model T and promised to stop insulting Jews. And a kid from Minnesota flew across an ocean and captivated the planet in a way it had never been captivated before. Whatever else it was, it was one hell of a summer.
Bill Bryson (One Summer: America, 1927)
The last clear definite function of man—muscles aching to work, minds aching to create beyond the single need—this is man....For man, unlike any other thing organic or inorganic in the universe, grows beyond his work, walks up the stairs of his concepts, emerges ahead of his accomplishments. This you may say of man—when theories change and crash, when schools, philosophies, when narrow dark alleys of thought, national, religious, economic, grow and disintegrate, man reaches, stumbles forward, painfully, mistakenly sometimes. Having stepped forward, he may slip back, but only half a step, never the full step back. This you may say and know it and know it. This you may know when the bombs plummet out of the black planes on the market place, when prisoners are stuck like pigs, when the crushed bodies drain filthily in the dust. You may know it in this way. If the step were not being taken, if the stumbling-forward ache were not alive, the bombs would not fall, the throats would not be cut. Fear the time when the bombs stop falling while the bombers live—for every bomb is proof that the spirit has not died. And fear the time when the strikes stop while the great owners live—for every little beaten strike is proof that the step is being taken. And this you can know—fear the time when Manself will not suffer and die for a concept, for this one quality is the foundation of Manself, and this one quality is man, distinctive in the universe.
John Steinbeck (The Grapes of Wrath)
And yet Branson (a notorious risk addict with a penchant for crash-landing hot air balloons) is far from the only one willing to stake our collective future on this kind of high-stakes gamble. Indeed the reason his various far-fetched schemes have been taken as seriously as they have over the years is that he, alongside Bill Gates with his near mystical quest for energy “miracles,” taps into what may be our culture’s most intoxicating narrative: the belief that technology is going to save us from the effects of our actions. Post–market crash and amidst ever more sinister levels of inequality, most of us have come to realize that the oligarchs who were minted by the era of deregulation and mass privatization are not, in fact, going to use their vast wealth to save the world on our behalf. Yet our faith in techno wizardry persists, embedded inside the superhero narrative that at the very last minute our best and brightest are going to save us from disaster.
Naomi Klein (This Changes Everything: Capitalism vs. The Climate)
We have been conditioned since birth with the belief that satisfaction of these inner needs comes through our interaction with the world. We seek inner fulfillment through what we have or what we do, through the experiences the world provides, and through the ways others behave toward us. This is the meme that governs so much of our thinking and behavior: the meme that says whether or not we are content with life depends on what we have and what we do. Prevalent as this meme may be, it seldom provides any lasting satisfaction. A person may gather a great deal of wealth, but is he really more secure? More than likely, he will soon find new sources of insecurity. Are my investments safe? Will the stock market crash? Can I trust my friends? Should I employ “security” companies to protect my possessions?
Peter Russell (Waking Up in Time: Finding Inner Peace in Times of Accelerating Change)
People like you and me are the problem, don’t you get that? We always defend ourselves by saying we’re only offering a service. That we’re just one tiny part of the market. That everything is people’s own fault. That they’re greedy, that they shouldn’t have given us their money. And then we have the nerve to wonder why stock markets crash and the city is full of rats…
Fredrik Backman (Anxious People)
If there was a day of the week I could skip it would be Monday. Clients had too much time to think and worry over a long weekend and by Monday they were often riddled with fear and anxiety.
Stan Turner
J. P. Morgan tells the story of how he would get his shoes shined every Wednesday at the same shop around the corner from his office. One day the shoe shine attendant asked him if he and his friends could buy some stock through Morgan’s brokerage. The three friends had about $40—a lot of money in 1929. Morgan politely refused, hurried back to his office, and ordered that his company was not to have a single share of stock on its books by the end of the day. Morgan simply asked, “If the shoe shine boys are buying stocks, who else is left?” Of course, the 1929 stock market crash was only a few days away, and Morgan looked like a genius. He was not a genius; he noted that the order flow was likely running out on the buy side. It wasn’t his army of analysts that showed him that. It was a public investor.
Anonymous
Wars, revolutions, market crashes, shifts in the mode of production, transformations in social relations: These are the things generations are made of, even if we can only see their true shape in the rearview mirror.
Malcolm Harris (Kids These Days: Human Capital and the Making of Millennials)
The shadow and flutter of Constant’s helicopter settling to the heliport seemed to many of the people below to be like the shadow and flutter of the Bright Angel of Death. It seemed that way because of the stock-market crash, because money and jobs were so scarce— And it seemed especially that way to them because the things that had crashed the hardest, that had pulled everything down with them, were the enterprises of Malachi Constant.
Kurt Vonnegut Jr. (The Sirens of Titan)
The history of modern stock market crashes invariably includes some theoretically sophisticated yet poorly understood financial contraption that mutates when stressed, pushing an already weakened system closer to the cliff.
Scott Nations (A History of the United States in Five Crashes: Stock Market Meltdowns That Defined a Nation)
His big claim to fame was that the Golden Fleece—that magical sheepskin rug I’m related to—ended up in his kingdom, which made the place immune to disease, invasion, stock market crashes, visits from Justin Bieber, and pretty
Rick Riordan (Percy Jackson's Greek Gods)
Many of the most interesting phenomena that we have touched upon fall into this category, including the occurrence of disasters such as earthquakes, financial market crashes, and forest fires. All of these have fat-tail distributions with many more rare events, such as enormous earthquakes, large market crashes, and raging forest fires, than would have been predicted by assuming that they were random events following a classic Gaussian distribution.
Geoffrey West (Scale: The Universal Laws of Growth, Innovation, Sustainability, and the Pace of Life, in Organisms, Cities, Economies, and Companies)
Vernon Smith and his colleagues have long confirmed that markets in goods and services for immediate consumption – haircuts and hamburgers – work so well that it is hard to design them so they fail to deliver efficiency and innovation; while markets in assets are so automatically prone to bubbles and crashes that it is hard to design them so they work at all.
Matt Ridley (The Rational Optimist (P.S.))
His big claim to fame was that the Golden Fleece—that magical sheepskin rug I’m related to—ended up in his kingdom, which made the place immune to disease, invasion, stock market crashes, visits from Justin Bieber, and pretty much any other natural
Rick Riordan (Percy Jackson's Greek Gods)
Even if the budget is never balanced, even if the stock market crashes, even if food prices skyrocket, even if my child never recovers from her illness, even if I lose my job, and even if we lose our home--yet will I rejoice in the God of my salvation.
R.C. Sproul (The Holiness of God)
His big claim to fame was that the Golden Fleece—that magical sheepskin rug I’m related to—ended up in his kingdom, which made the place immune to disease, invasion, stock market crashes, visits from Justin Bieber, and pretty much any other natural disaster.
Rick Riordan (Percy Jackson's Greek Gods)
I just talked to an old duck farmer who told me he remembers me from when I was three months old. I replied, “Oh, I recall that. That was June of ’82. I told you the stock market would crash in five years, around October, and you scoffed and called me a pessimist.
Jarod Kintz (Music is fluid, and my saxophone overflows when my ducks slosh in the sounds I make in elevators.)
In many ways the effect of the crash on embezzlement was more significant than on suicide. To the economist embezzlement is the most interesting of crimes. Alone among the various forms of larceny it has a time parameter. Weeks, months, or years may elapse between the commission of the crime and its discovery. (This is a period, incidentally, when the embezzler has his gain and the man who has been embezzled, oddly enough, feels no loss. There is a net increase in psychic wealth.) At any given time there exists an inventory of undiscovered embezzlement in — or more precisely not in — the country’s businesses and banks. This inventory — it should perhaps be called the bezzle — amounts at any moment to many millions of dollars. It also varies in size with the business cycle. In good times people are relaxed, trusting, and money is plentiful. But even though money is plentiful, there are always many people who need more. Under these circumstances the rate of embezzlement grows, the rate of discovery falls off, and the bezzle increases rapidly. In depression all this is reversed. Money is watched with a narrow, suspicious eye. The man who handles it is assumed to be dishonest until he proves himself otherwise. Audits are penetrating and meticulous. Commercial morality is enormously improved. The bezzle shrinks. … Just as the boom accelerated the rate of growth, so the crash enormously advanced the rate of discovery. Within a few days, something close to a universal trust turned into something akin to universal suspicion. Audits were ordered. Strained or preoccupied behavior was noticed. Most important, the collapse in stock values made irredeemable the position of the employee who had embezzled to play the market. He now confessed.
John Kenneth Galbraith (The Great Crash of 1929)
I had heard an amazing story that supported what the Archbishop was saying. When I met James Doty, he was the founder and director of the Center of Compassion and Altruism Research and Education at Stanford and the chairman of the Dalai Lama Foundation. Jim also worked as a full-time neurosurgeon. Years earlier, he had made a fortune as a medical technology entrepreneur and had pledged stock worth $30 million to charity. At the time his net worth was over $75 million. However, when the stock market crashed, he lost everything and discovered that he was bankrupt. All he had left was the stock that he had pledged to charity. His lawyers told him that he could get out of his charitable contributions and that everyone would understand that his circumstances had changed. “One of the persistent myths in our society,” Jim explained, “is that money will make you happy. Growing up poor, I thought that money would give me everything I did not have: control, power, love. When I finally had all the money I had ever dreamed of, I discovered that it had not made me happy. And when I lost it all, all of my false friends disappeared.” Jim decided to go through with his contribution. “At that moment I realized that the only way that money can bring happiness is to give it away.” •
Dalai Lama XIV (The Book of Joy: Lasting Happiness in a Changing World)
The trick to realize that the boys who talk so much about being rejected that it seems like the’re proud of it aren’t necessarily sweeter or more sensitive than the Bababooey-spouting frat bullies who line up at clubs like SkyBar to run game on girls they want to date rape. There are plenty of nerds who fear women and aren’t sensitive, despite their marketing; they just dislike women in a new, exciting way. Timid racists aren’t sensitive because they lock their car doors when they see a black person on the street. They’re just too scared to get out of the car and shout the “N” word. Fear can be the result of admiration, or it can be a symptom of contempt. When I see squeamish guys passing over qualified women when they’re hiring for a job, or becoming tongue tied when a girl crashes their all-boy conversation at a party, I don’t give them credit for being awestruck. They’re reacting to the intimidating female as an intruder, an alien, and somebody they can’t relate to. It’s not a compliment to be made invisible.
Julie Klausner (I Don't Care About Your Band: Lessons Learned from Indie Rockers, Trust Funders, Pornographers, Felons, Faux-Sensitive Hipsters, and Other Guys I've Dated)
When I was in the Far East, I was asked not to mention the Big Crunch, because of the effect it might have on the market. But the markets crashed, so maybe the story got out somehow. In Britain, people don't seem too worried about a possible end twenty billion years in the future. You can do quite a lot of eating, drinking and being merry before that.
Stephen Hawking (Brief Answers to the Big Questions)
It was called a crisis in the financial markets, a bank crash, even though the only ones who crash are people.
Fredrik Backman (Anxious People)
In 2010, computerised trading systems created the stock-market Flash Crash; what would a computer-triggered crash look like in the defence arena?
Stephen Hawking (Brief Answers to the Big Questions)
Big market price changes happen when lots of people are forced to reevaluate their prejudices, not necessarily when the world actually changes. — Colm O'Shea
Jack D. Schwager (Hedge Fund Market Wizards: How Winning Traders Win (Market Wizards, #4))
Be what you are, not what you want to be.
Fernando Oliveira (Traders of the New Era Expanded: Interviews with a Select Group of Day and Swing Traders Who are Still Beating the Markets in the Era of High Frequency Trading and Flash Crashes)
It’s funny how the economy is about to collapse because people are only buying what they need.
Tan Liu (The Ponzi Factor: The Simple Truth About Investment Profits)
brewing
Liam Vaughan (Flash Crash: A Trading Savant, a Global Manhunt, and the Most Mysterious Market Crash in History)
But when big events happen—markets crash, wars loom, leaders tremble—we turn to the experts, those in the know. We look to people like Tom Friedman.
Philip E. Tetlock (Superforecasting: The Art and Science of Prediction)
But the 1890s may also count as the first time in human history when market manipulation during a climate crisis crashed the world economy.
Caroline Fraser (Prairie Fires: The American Dreams of Laura Ingalls Wilder)
Demand may be a suitable subject for psychologists, supply may be the province of engineers or management scientists; both are beyond the scope of economics.
George Soros (The Crash of 2008 and What it Means: The New Paradigm for Financial Markets)
But you just watch, little girl. I'm goin' to show 'em. In five years they'll come crawlin' to me on their bellies. I don't know what it is, but I got a kind of feel for the big money.
John Dos Passos (The Big Money (U.S.A., #3))
We can discuss this point from different angles. Experts call one manifestation of such denigration of history historical determinism. In a nutshell we think that we would know when history is made; we believe that people who, say, witnessed the stock market crash of 1929 knew then that they lived an acute historical event and that, should these events repeat themselves, they too would know about such facts. Life for us is made to resemble an adventure movie, as we know ahead of time that something big is about to happen. It is hard to imagine that people who witnessed history did not know at the time how important the moment was. Somehow all respect we may have for history does not translate well into our treatment of the present.
Nassim Nicholas Taleb (Fooled by Randomness: The Hidden Role of Chance in Life and in the Markets)
We find the same situation in the economy. On the one hand, the battered remnants of production and the real economy; on the other, the circulation of gigantic amounts of virtual capital. But the two are so disconnected that the misfortunes which beset that capital – stock market crashes and other financial debacles – do not bring about the collapse of real economies any more. It is the same in the political sphere: scandals, corruption and the general decline in standards have no decisive effects in a split society, where responsibility (the possibility that the two parties may respond to each other) is no longer part of the game. This paradoxical situation is in a sense beneficial: it protects civil society (what remains of it) from the vicissitudes of the political sphere, just as it protects the economy (what remains of it) from the random fluctuations of the Stock Exchange and international finance. The immunity of the one creates a reciprocal immunity in the other – a mirror indifference. Better: real society is losing interest in the political class, while nonetheless availing itself of the spectacle. At last, then, the media have some use, and the ‘society of the spectacle’ assumes its full meaning in this fierce irony: the masses availing themselves of the spectacle of the dysfunctionings of representation through the random twists in the story of the political class’s corruption. All that remains now to the politicians is the obligation to sacrifice themselves to provide the requisite spectacle for the entertainment of the people.
Jean Baudrillard (Screened Out)
The crash, he believed, had been a lancet applied to an abscess. A good bleeding was necessary to do away with the swelling so that the market could find its true bottom and rebuild on solid foundations.
Hernan Diaz (Trust)
To belong to a clan, to a tight group of people allied by blood and loyalties and the mutual ownership of closeted skeletons. To see the family vices and virtues in a dozen avatars instead of in two or three. To know always, whether you were in Little Rock or Menton, that there was one place to which you belonged and to which you would return. To have that rush of sentimental loyalty at the sound of a name, to love and know a single place, from the newest baby-squall on the street to the blunt cuneiform of the burial ground . . . Those were the things that not only his family, but thousands of Americans had missed. The whole nation had been footloose too long, Heaven had been just over the next range for too many generations. Why remain in one dull plot of earth when Heaven was reachable, was touchable, was just over there? The whole race was like the fir tree in the fairy-tale which wanted to be cut sown and dressed up with lights and bangles and colored paper, and see the world and be a Christmas tree. Well, he said, thinking of the closed banks, the crashed market that had ruined thousands and cut his father’s savings in half, the breadlines in the cities, the political jawing and the passing of the buck. Well, we’ve been a Christmas tree, and now we’re in the back yard and how do we like it?
Wallace Stegner
The accepted version of history is that the Federal Reserve was created to stabilize our economy. One of the most widely-used textbooks on this subject says: "It sprang from the panic of 1907, with its alarming epidemic of bank failures: the country was fed up once and for all with the anarchy of unstable private banking."23 Even the most naive student must sense a grave contradiction between this cherished view and the System's actual performance. Since its inception, it has presided over the crashes of 1921 and 1929; the Great Depression of '29 to '39; recessions in '53, '57, '69, '75, and '81; a stock market "Black Monday" in '87; and a 1000% inflation which has destroyed 90% of the dollar's purchasing power.24
G. Edward Griffin (The Creature from Jekyll Island)
In the 1960's, some old-timers on Wall Street-the men who remembered the trauma of the 1929 Crash and the Great Depression-gave me a warning: "When we fade from this business, something will be lost. That is the memory of 1929." Because of that personal recollection, they said, they acted with more caution, than they otherwise might. Collectively, their generation provided an in-built brake on the wildest form of speculation, an insurance policy against financial excess and consequent catastrophe. Their memories provided a practical form of long-term dependence in the financial markets. Is it any wonder that in 1987 when most of those men were gone and their wisdom forgotten, the market encountered its first crash in nearly sixty years? Or that, two decades later, we would see the biggest bull market, and the worst bear market, in generations? Yet standard financial theory holds that, in modeling markets, all that matters is today's news and the expectations of tomorrow's news.
Benoît B. Mandelbrot (The (Mis)Behavior of Markets)
You make plans and decisions assuming randomness and chaos are for chumps. The illusion of control is a peculiar thing because it often leads to high self-esteem and a belief your destiny is yours for the making more than it really is. This over-optimistic view can translate into actual action, rolling with the punches and moving ahead no matter what. Often, this attitude helps lead to success. Eventually, though, most people get punched in the stomach by life. Sometimes, the gut-punch doesn’t come until after a long chain of wins, until you’ve accumulated enough power to do some serious damage. This is when wars go awry, stock markets crash, and political scandals spill out into the media. Power breeds certainty, and certainty has no clout against the unpredictable, whether you are playing poker or running a country. Psychologists point out these findings do not suggest you should throw up your hands and give up. Those who are not grounded in reality, oddly enough, often achieve a lot in life simply because they believe they can and try harder than others. If you focus too long on your lack of power, you can slip into a state of learned helplessness that will whirl you into a negative feedback loop of depression. Some control is necessary or else you give up altogether. Langer proved this when studying nursing homes where some patients were allowed to arrange their furniture and water plants—they lived longer than those who had had those tasks performed by others. Knowing about the illusion of control shouldn’t discourage you from attempting to carve a space for yourself out of whatever field you want to tackle. After all, doing nothing guarantees no results. But as you do so, remember most of the future is unforeseeable. Learn to coexist with chaos. Factor it into your plans. Accept that failure is always a possibility, even if you are one of the good guys; those who believe failure is not an option never plan for it. Some things are predictable and manageable, but the farther away in time an event occurs, the less power you have over it. The farther away from your body and the more people involved, the less agency you wield. Like a billion rolls of a trillion dice, the factors at play are too complex, too random to truly manage. You can no more predict the course of your life than you could the shape of a cloud. So seek to control the small things, the things that matter, and let them pile up into a heap of happiness. In the bigger picture, control is an illusion anyway.
David McRaney (You Are Not So Smart: Why You Have Too Many Friends on Facebook, Why Your Memory Is Mostly Fiction, and 46 Other Ways You're Deluding Yourself)
Back in 2007, former Fed chair Alan Greenspan had been asked by the Zürich daily Tages-Anzeiger which candidate he was supporting in the upcoming presidential election. His response was striking. How he voted did not matter, Greenspan declared, because “(we) are fortunate that, thanks to globalization, policy decisions in the US have been largely replaced by global market forces. National security aside, it hardly makes any difference who will be the next president. The world is governed by market forces.
Adam Tooze (Crashed: How a Decade of Financial Crises Changed the World)
In science, all important ideas need names and stories to fix them in the memory. It occurred to me that the market's first wild trait, abrupt change or discontinuity, is prefigured in the Bible tale of Noah. As Genesis relates, in Noah's six hundredth year God ordered the Great Flood to purify a wicked world. Then "were all the fountains of the great deep broken up, and the windows of heaven were opened." Noah survived, of course: He prepared against the coming flood by building a ship strong enough to withstand it. The flood came and went-catastrophic, but transient. Market crashes are like that. The 29.2 percent collapse of October 19, 1987, arrived without warning or convincing reason; and at the time, it seemed like the end of the financial world. Smaller squalls strike more often, with more localized effect. In fact, a hierarchy of turbulence, a pattern that scales up and down with time, governs this bad financial weather. At times, even a great bank or brokerage house can seem like a little boat in a big storm.
Benoît B. Mandelbrot (The (Mis)Behavior of Markets)
Americans built a culture of speculation unique in its abandon,” writes the historian Joshua Rothman in his book Flush Times and Fever Dreams. That culture would drive cotton production up to the Civil War, and it has been a defining characteristic of American capitalism ever since. It is the culture of acquiring wealth without work, growing at all costs, and abusing the powerless. It is the culture that brought us catastrophic downturns, like the Panic of 1837, the stock market crash of 1929, and the recession of 2008.
Nikole Hannah-Jones (The 1619 Project: A New Origin Story)
The worst continued to worsen. What looked one day like the end proved on the next day to have been only the beginning. Nothing could have been more ingeniously designed to maximize the suffering, and also to insure that as few people as possible escape the common misfortune. The fortunate speculator who had funds to answer the first margin call presently got another and equally urgent one, and if he met that there would still be another. In the end all the money he had was extracted from him and lost. The man with the smart money, who was safely out of the market when the first crash came, naturally went back in to pick up bargains. The bargains then suffered a ruinous fall. Even the man who waited for volume of trading to return to normal and saw Wall Street become as placid as a produce market, and who then bought common stocks would see their value drop to a third or a fourth of the purchase price in the next 24 months. The Coolidge bull market was a remarkable phenomenon. The ruthlessness of its liquidation was, in its own way, equally remarkable.
John Kenneth Galbraith (The Great Crash of 1929)
Robert Rubin, a former Secretary of the United States Treasury, one of those who sign their names on the banknote you just used to pay for coffee, collected more than $120 million in compensation from Citibank in the decade preceding the banking crash of 2008. When the bank, literally insolvent, was rescued by the taxpayer, he didn’t write any check—he invoked uncertainty as an excuse. Heads he wins, tails he shouts “Black Swan.” Nor did Rubin acknowledge that he transferred risk to taxpayers: Spanish grammar specialists, assistant schoolteachers, supervisors in tin can factories, vegetarian nutrition advisors, and clerks for assistant district attorneys were “stopping him out,” that is, taking his risks and paying for his losses. But the worst casualty has been free markets, as the public, already prone to hating financiers, started conflating free markets and higher order forms of corruption and cronyism, when in fact it is the exact opposite: it is government, not markets, that makes these things possible by the mechanisms of bailouts. It is not just bailouts: government interference in general tends to remove skin in the game.
Nassim Nicholas Taleb (Skin in the Game: Hidden Asymmetries in Daily Life (Incerto))
A year earlier, no company had been accorded more faith than Enron; by late November, none was trusted less. And so, a gasping gurgle, a desperate SOS: Enron, the emblem of free markets, the champion of deregulation, reached into its depleted treasury and forked over $100,000 to each of the major political parties' campaign war chests. Then, it shuttered its online trading unit - its erstwhile gem. On November 28, Standard & Poor's downgraded Enron to junk-bond level - which triggered provisions in Enron's debt requiring it to immediately repay billions of its obligations. This it could not do. Its stock was seventy cents and falling, and, now, no gatekeepers and no credit remained. Accordingly, in the first week of December, Enron, the archetype of shareholder value, availed itself of the time-honored protection for those who have lost their credit: bankruptcy.
Roger Lowenstein (Origins of the Crash: The Great Bubble and Its Undoing)
There would also be, we may be certain, the traditional reassuring words from Washington. Always when markets are in trouble, the phrases are the same: “The economic situation is fundamentally sound” or simply “The fundamentals are good.” All who hear these words should know that something is wrong.
John Kenneth Galbraith (The Great Crash of 1929)
I don't know the odds of an earthquake, but I can imagine how San Francisco might be affected by one. This idea that in order to make a decision you need to focus on the consequences (which you can know) rather than the probability (which you can't know) is the central idea of uncertainty. Much of my life is based on it. You can build an overall theory of decision making on this idea. All you have to do is mitigate the consequences. As I said, if my portfolio is exposed to a market crash, the odds of which I can't compute, all I have to do is buy insurance, or get out and invest the amounts I am not willing to ever lose in less risky securities.
Nassim Nicholas Taleb
Almost every woman had a primary role in the “female-dominated” family structure; only a small percentage of men had a primary role in the “male-dominated” governmental and religious structures. Many mothers were, in a sense, the chair of the board of a small company—their family. Even in Japan, women are in charge of the family finances—a fact that was revealed to the average American only after the Japanese stock market crashed in 1992 and thousands of women lost billions of dollars that their husbands never knew they had invested.23 Conversely, most men were on their company’s assembly line—either its physical assembly line or its psychological assembly line.
Warren Farrell (The Myth of Male Power)
It was hard to ask someone like Zara about that sort of thing directly, so the psychologist asked instead: “Why do you like your job?” “Because I’m an analyst. Most people who do the same job as me are economists,” Zara replied immediately. “What’s the difference?” “Economists only approach problems head-on. That’s why economists never predict stock market crashes.” “And you’re saying that analysts do?” “Analysts expect crashes. Economists only earn money when things go well for the bank’s customers, whereas analysts earn money all the time.” “Does that make you feel guilty?” the psychologist asked, mostly to see if Zara thought that word was a feeling or something to do with gold plating. “Is it the croupier’s fault if you lose your money at the casino?” Zara asked. “I’m not sure that’s a fair comparison.” “Why not?” “Because you use words like ‘stock market crash,’ but it’s never the stock market or the banks that crash. Only people do that.” “There’s a very logical explanation for why you think that.” “Really?” “It’s because you think the world owes you something. It doesn’t.” “You still haven’t answered my question. I asked why you like your job. All you’ve done is tell me why you’re good at it.” “Only weak people like their jobs.” “I don’t think that’s true.” “That’s because you like your job.” “You say that as if there’s something wrong with that.
Fredrik Backman (Anxious People)
I believe that everyone should keep a reserve of liquidity outside their portfolio to meet family emergencies. While a portfolio can be part liquidated relatively quickly, there have been times, such as the secondary banking crisis of the early 1970s or the 2008 subprime/banking crash, when markets have plunged and stocks have become almost unsaleable.
John Lee (How to Make a Million Slowly: My Guiding Principles from a Lifetime of Successful Investing)
One of the NECESSARILY ILLUSIONS for the general public is that we live in a capitalist economy, but the rich don’t believe that for a minute. They insist on a powerful state to protect them from market discipline. So if Goldman Sachs makes a risky transaction, they’re basically protected. If it crashes, they can run to the nanny state with their cap in hand and get bailed out.
Noam Chomsky (Necessary Illusions: Thought Control in Democratic Societies)
Some researchers, such as psychologist Jean Twenge, say this new world where compliments are better than sex and pizza, in which the self-enhancing bias has been unchained and allowed to gorge unfettered, has led to a new normal in which the positive illusions of several generations have now mutated into full-blown narcissism. In her book The Narcissism Epidemic, Twenge says her research shows that since the mid-1980s, clinically defined narcissism rates in the United States have increased in the population at the same rate as obesity. She used the same test used by psychiatrists to test for narcissism in patients and found that, in 2006, one in four U.S. college students tested positive. That’s real narcissism, the kind that leads to diagnoses of personality disorders. In her estimation, this is a dangerous trend, and it shows signs of acceleration. Narcissistic overconfidence crosses a line, says Twenge, and taints those things improved by a skosh of confidence. Over that line, you become less concerned with the well-being of others, more materialistic, and obsessed with status in addition to losing all the restraint normally preventing you from tragically overestimating your ability to manage or even survive risky situations. In her book, Twenge connects this trend to the housing market crash of the mid-2000s and the stark increase in reality programming during that same decade. According to Twenge, the drive to be famous for nothing went from being strange to predictable thanks to a generation or two of people raised by parents who artificially boosted self-esteem to ’roidtastic levels and then released them into a culture filled with new technologies that emerged right when those people needed them most to prop up their self-enhancement biases. By the time Twenge’s research was published, reality programming had spent twenty years perfecting itself, and the modern stars of those shows represent a tiny portion of the population who not only want to be on those shows, but who also know what they are getting into and still want to participate. Producers with the experience to know who will provide the best television entertainment to millions then cull that small group. The result is a new generation of celebrities with positive illusions so robust and potent that the narcissistic overconfidence of the modern American teenager by comparison is now much easier to see as normal.
David McRaney (You Are Now Less Dumb: How to Conquer Mob Mentality, How to Buy Happiness, and All the Other Ways to Outsmart Yourself)
let the Dow Jones plunge and markets all over the world also plummet. Some economists have advocated the decoupling of economies, but the crash in global markets, preceded by the financial crisis in the United States, is a stark reminder of the inter-dependence of the nations of the world, increasing ever since the first true decoupling occurred when God scattered the residents of the original Babylon and formed the nations.
John Price (The End of America: The Role of Islam in the End Times and Biblical Warnings to Flee America)
For man, unlike any other thing organic or inorganic in the universe, grows beyond his work, walks up the stairs of his concepts, emerges ahead of his accomplishments. This you may say of man when theories change and crash, when schools, philosophies, when narrow dark alleys of thought, national, religious, economic, grow and disintegrate, man reaches, stumbles forward, painfully, mistakenly sometimes. Having stepped forward, he may slip back, but only half a step, never the full step back. This you may say and know it and know it. This you may know when the bombs plummet out of the black planes on the market place, when prisoners are stuck like pigs, when the crushed bodies drain filthily in the dust. You may know it in this way. If the step were not being taken, if the stumbling-forward ache were not alive, the bombs would not fall, the throats would not be cut. Fear the time when the bombs stop falling while the bombers live- for every bomb is proof that the spirit has not died. And fear the time when the strikes stop while the great owners live- for every little beaten strike is proof that the step is being taken. And this you can know- fear the time when Manself will not suffer and die for a concept, for this one quality is the foundation of Manself, and this one quality is man, distinctive in the universe.
John Steinbeck (The Grapes of Wrath)
Investors who focus on currencies, bonds, and stock markets generally assume a normal distribution of price changes: values jiggle up and down, but extreme moves are unusual. Of course, extreme moves are possible, as financial crashes show. But between 1985 and 2015, the S&P 500 stock index budged less than 3 percent from its starting point on 7,663 out of 7,817 days; in other words, for fully 98 percent of the time, the market is remarkably stable.
Sebastian Mallaby (The Power Law: Venture Capital and the Making of the New Future)
When we talk about reducing transportation emissions, the conversation tends to solely be about cars and fuel. Efforts to invent and promote electric and hybrid cars have enjoyed some success, and have proven the latent market demand for lower-emissions personal transportation. These vehicles pollute less, but they still require roads and parking spaces, are susceptible to crashes, and contribute to a dispersed and unhealthy landscape. And they are far from energy-neutral.
Elly Blue (Bikenomics: How Bicycling Can Save The Economy)
Keynes asked me what I was advising my clients. “To insulate themselves as much as possible from the coming crisis and to avoid the markets,” I replied. Keynes took the opposite view. “We will not have any more crashes in our time,” he insisted. . . . “And where is the crash coming from in any case?” “The crash will come from the gap between appearances and reality. I have never seen such stormy weather gathering,” I said. 1927 conversation with Keynes recounted by Felix Somary in The Raven of Zurich (1986)
James Rickards (The Road to Ruin: The Global Elites' Secret Plan for the Next Financial Crisis)
The Oreo cookie invented, the Titanic sinks, Spanish flu, Prohibition, women granted the right to vote, Lindbergh flies solo across the Atlantic, penicillin invented, stock market crashes, the Depression, Amelia Earhart, the atom is split, Prohibition ends, Golden Gate Bridge is built, Pearl Harbor, D-Day, the Korean War, Disneyland, Rosa Parks, Laika the dog is shot into space, hula hoops, birth control pill invented, Bay of Pigs, Marilyn Monroe dies, JFK killed, MLK has a dream, Vietnam War, Star Trek, MLK killed, RFK killed, Woodstock, the Beatles (George, Ringo, John, and Paul) break up, Watergate, the Vietnam War ends, Nixon resigns, Earth Day, Fiddler on the Roof, Olga Korbut, Patty Hearst, Transcendental Meditation, the ERA, The Six Million Dollar Man. "Bloody hell," I said when she was done. "I know. It must be a lot to take in." "It's unfathomable. A Brit named his son Ringo Starr?" She looked pleasantly surprised: she'd thought I had no sense of humor. "Well, I think his real name was Richard Starkey.
Melanie Gideon (Valley of the Moon)
back-scratching of liquor licenses, the netherworld of trash removal, linen, grease disposal. And with every dime you've got tied up in your new place, suddenly the drains in your prep kitchen are backing up with raw sewage, pushing hundreds of gallons of impacted crap into your dining room; your coke-addled chef just called that Asian waitress who's working her way through law school a chink, which ensures your presence in court for the next six months; your bartender is giving away the bar to under-age girls from Wantagh, any one of whom could then crash Daddy's Buick into a busload of divinity students, putting your liquor license in peril, to say the least; the Ansel System could go off, shutting down your kitchen in the middle of a ten-thousand-dollar night; there's the ongoing struggle with rodents and cockroaches, any one of which could crawl across the Tina Brown four-top in the middle of the dessert course; you just bought 10,000 dollars-worth of shrimp when the market was low, but the walk-in freezer just went on the fritz and naturally it's a holiday weekend, so good luck getting a service call in time; the dishwasher just walked out after arguing with the busboy, and they need glasses now on table seven; immigration is at the door for a surprise inspection of your kitchen's Green Cards; the produce guy wants a certified check or he's taking back the delivery; you didn't order enough napkins for the weekend — and is that the New York Times reviewer waiting for your hostess to stop flirting and notice her?
Anthony Bourdain (Kitchen Confidential: Adventures in the Culinary Underbelly)
Most cleantech companies crashed because they neglected one or more of the seven questions that every business must answer: 1. The Engineering Question Can you create breakthrough technology instead of incremental improvements? 2. The Timing Question Is now the right time to start your particular business? 3. The Monopoly Question Are you starting with a big share of a small market? 4. The People Question Do you have the right team? 5. The Distribution Question Do you have a way to not just create but deliver your product? 6. The Durability Question Will your market position be defensible 10 and 20 years into the future? 7. The Secret Question Have you identified a unique opportunity that others don’t see? We’ve discussed these elements before. Whatever your industry, any great business plan must address every one of them. If you don’t have good answers to these questions, you’ll run into lots of “bad luck” and your business will fail. If you nail all seven, you’ll master fortune and succeed. Even getting five or six correct might work.
Peter Thiel (Zero to One: Notes on Start Ups, or How to Build the Future)
Said the Broadway star Billie Burke, “The Roaring Twenties were very pleasant if you did not stop to think.” Most people didn’t stop to think. And still don’t, as they look back. If they did, they would see not just the pervasiveness of hardship throughout the decade, but the horrible prelude it proved to be—for at its opposite end, there was a different kind of explosion on Wall Street. The stock market crashed, and much of the United States crashed along with it. The value of investments dropped like never before, never since; the term “Depression” described not just the ruination of financial accounts, but the attitude of an entire nation, so many people so painfully victimized by a lack of income and, with it, a lack of opportunity. The New Deal helped, but it took another Great War, after yet another decade, to jump-start economic growth again. Ten years, it might have been, from Prohibition to stock-market crash, but they held a century’s worth of turmoil and jubilation, irrationality and intrigue, optimism and injustice. It all began in 1920.
Eric Burns (1920: The Year that Made the Decade Roar)
Chapter 51 In Atlanta, the day had gone mostly as Elliott had expected. The stock market crash had rattled everyone. It was a cloud that hung over the euphoria of Black Friday. The most difficult part of his plan had been convincing the other five families to pool their money with his for the purchases, which together added up to hundreds of thousands of dollars. They had begun by renting two twenty-six-foot U-Haul trucks. They drove them to Costco and filled them with survival necessities. It was mostly food; Elliott planned to be near a freshwater source if worst came to worst. Next, they purchased two high-end RVs. The price was exorbitant, but they carried a thirty-day money-back guarantee, and they only had to make a down payment—the remainder was financed. Elliott had assured his neighbors that within thirty days, they would either be incredibly glad to have the two homes on wheels—or they’d have their money back. Now he sat in his study, watching the news, waiting for the event he believed would come. He hoped he was wrong. DAY 7 900,000,000 Infected 180,000 Dead
A.G. Riddle (Pandemic (The Extinction Files, #1))
Bitcoin is just six years old. It has gone from what was ostensibly one lonely coder’s pet project to a global phenomenon that has sparked the imagination and activism of libertarians, anticorporatists, crypto-anarchists, utopians, entrepreneurs, and VCs. Bitcoin has gone from being essentially worthless to dearly valuable, only to crash and rise again, a wild trading pattern that has few analogues in capital markets. It’s certainly gone from nowhere to somewhere, and where it goes from here may be as messy and chaotic as where it’s been.
Paul Vigna (The Age of Cryptocurrency: How Bitcoin and Digital Money Are Challenging the Global Economic Order)
Dr. Morris Netherton, a pioneer in the field of past-life therapy (and my teacher),7 relates the incident of a patient who returned to her previous life as Rita McCullum. Rita was born in 1903 and lived in rural Pennsylvania with her foster parents until they were killed in a car accident in 1916. In the early 1920s she married a man named McCullum and moved to New York, where they had a garment manufacturing company off Seventh Avenue in midtown Manhattan. Life was hard and money short. Her husband died in 1928. In 1929, her son died from polio, and the stock market crashed. Like many others during the Great Depression, Rita succumbed to bankruptcy and depression. On the sunny day of June 11, 1933, she hanged herself from the ceiling fan of her factory. Because this memory featured traceable facts, Netherton and his patient contacted New York City’s Hall of Records. They received a photocopy of a notarized death certificate of a woman named Rita McCullum. Under manner of death, it stated that she died by hanging at an address in the West Thirties, still today the heart of the garment district. The date of death was June 11, 1933.8
Julia Assante (The Last Frontier: Exploring the Afterlife and Transforming Our Fear of Death)
It is possible that the next economic downturn--or stock market crash--will bring on further developments. During the recession at the end of the 1980s, ex-Ku Klux Klan leader David Duke gathered strong support from disgruntled citizens in Louisiana for his gubernatorial and US Senate races. Voters did not seem to be bothered by his record, which included plenty of statements like: "The Jews have been working against our national interest. . . . I think they should be punished." Bertram Gross and Kevin Phillips had each foreseen part of a process that engendered remarkable tolerance for authoritarian political solutions. Gross correctly identified the kind of authority that the corporate world wanted to exercise over working- and middle-class Americans. Phillips was perceptive about the way ordinary Americans would participate in actually constructing a more harsh and restrictive social milieu. By the 1990s the two strands were coalescing into something we could call "Authoritarian Democracy." Today it is clear that the goals of the corporate rich can be furthered by the enthusiasms of the popular classes, especially in the realms of religion.
Steve Brouwer (Sharing the Pie : A Citizen's Guide to Wealth and Power)
He told the associate that there was a lot of economic value in the work the desk did—that helping companies hedge their energy costs was a legitimate function of the capital markets, and that Goldman was the best place on the Street to do it. The associate took a moment to contemplate, then said, “You know, helping the world is great and all, but you need to be motivated by money.” He’d said it so bluntly that Jeremy attributed it to the booze, but the next day, as he came down from his hangover, he couldn’t help but think that the associate might have been telling the truth.
Kevin Roose (Young Money: Inside the Hidden World of Wall Street's Post-Crash Recruits)
If one day Balloon Dog’s value bursts and shrivels in a Koons crash, we can only hope that Anonymous has an ongoing relationship with his orange pooch that can sustain the inevitable inflations and deflations of all speculative markets. In fact, a balloon serves as a nice metaphor for the lessons of history: you blow and you blow and you blow, and the thing gets larger and larger and larger still, and in your excitement you forget the laws of physics, and you begin to believe that your balloon is like no other balloon in the world—there is no limit to its size. And then, it pops.
Siri Hustvedt (A Woman Looking at Men Looking at Women: Essays on Art, Sex, and the Mind)
Making money in the markets is tough. The brilliant trader and investor Bernard Baruch put it well when he said, “If you are ready to give up everything else and study the whole history and background of the market and all principal companies whose stocks are on the board as carefully as a medical student studies anatomy—if you can do all that and in addition you have the cool nerves of a gambler, the sixth sense of a clairvoyant and the courage of a lion, you have a ghost of a chance.” In retrospect, the mistakes that led to my crash seemed embarrassingly obvious. First, I had been wildly overconfident and had let my emotions get the better of me. I learned (again) that no matter how much I knew and how hard I worked, I could never be certain enough to proclaim things like what I’d said on Wall $ treet Week: “There’ll be no soft landing. I can say that with absolute certainty, because I know how markets work.” I am still shocked and embarrassed by how arrogant I was. Second, I again saw the value of studying history. What had happened, after all, was “another one of those.” I should have realized that debts denominated in one’s own currency can be successfully restructured with the government’s help, and that when central banks simultaneously provide stimulus (as they did in March 1932, at the low point of the Great Depression, and as they did again in 1982), inflation and deflation can be balanced against each other. As in 1971, I had failed to recognize the lessons of history. Realizing that led me to try to make sense of all movements in all major economies and markets going back a hundred years and to come up with carefully tested decision-making principles that are timeless and universal. Third, I was reminded of how difficult it is to time markets. My long-term estimates of equilibrium levels were not reliable enough to bet on; too many things could happen between the time I placed my bets and the time (if ever) that my estimates were reached. Staring at these failings, I realized that if I was going to move forward without a high likelihood of getting whacked again, I would have to look at myself objectively and change—starting by learning a better way of handling the natural aggressiveness I’ve always shown in going after what I wanted. Imagine that in order to have a great life you have to cross a dangerous jungle. You can stay safe where you are and have an ordinary life, or you can risk crossing the jungle to have a terrific life. How would you approach that choice? Take a moment to think about it because it is the sort of choice that, in one form or another, we all have to make.
Ray Dalio (Principles: Life and Work)
Inarguably, a successful restaurant demands that you live on the premises for the first few years, working seventeen-hour days, with total involvement in every aspect of a complicated, cruel and very fickle trade. You must be fluent in not only Spanish but the Kabbala-like intricacies of health codes, tax law, fire department regulations, environmental protection laws, building code, occupational safety and health regs, fair hiring practices, zoning, insurance, the vagaries and back-alley back-scratching of liquor licenses, the netherworld of trash removal, linen, grease disposal. And with every dime you've got tied up in your new place, suddenly the drains in your prep kitchen are backing up with raw sewage, pushing hundreds of gallons of impacted crap into your dining room; your coke-addled chef just called that Asian waitress who's working her way through law school a chink, which ensures your presence in court for the next six months; your bartender is giving away the bar to under-age girls from Wantagh, any one of whom could then crash Daddy's Buick into a busload of divinity students, putting your liquor license in peril, to say the least; the Ansel System could go off, shutting down your kitchen in the middle of a ten-thousand-dollar night; there's the ongoing struggle with rodents and cockroaches, any one of which could crawl across the Tina Brown four-top in the middle of the dessert course; you just bought 10,000 dollars-worth of shrimp when the market was low, but the walk-in freezer just went on the fritz and naturally it's a holiday weekend, so good luck getting a service call in time; the dishwasher just walked out after arguing with the busboy, and they need glasses now on table seven; immigration is at the door for a surprise inspection of your kitchen's Green Cards; the produce guy wants a certified check or he's taking back the delivery; you didn't order enough napkins for the weekend — and is that the New York Times reviewer waiting for your hostess to stop flirting and notice her?
Anthony Bourdain (Kitchen Confidential: Adventures in the Culinary Underbelly)
One example of a high-tech company that submits to a Graham type of analysis is Amazon.com. Though it does business exclusively on the Web, Amazon is essentially a retailer, and it may be evaluated in the same way as Wal-Mart, Sears, and so forth. The question, as always, is, does the business provide an adequate margin of safety at a given market price. For much of Amazon’s short life, the stock was wildly overpriced. But when the dot-com bubble burst, its securities collapsed. Buffett himself bought Amazon’s deeply discounted bonds after the crash, when there was much fearful talk that Amazon was headed for bankruptcy. The bonds subsequently rose to par, and Buffett made a killing.
Benjamin Graham (Security Analysis)
Most cleantech companies crashed because they neglected one or more of the seven questions that every business must answer: 1. The Engineering Question Can you create breakthrough technology instead of incremental improvements? 2. The Timing Question Is now the right time to start your particular business? 3. The Monopoly Question Are you starting with a big share of a small market? 4. The People Question Do you have the right team? 5. The Distribution Question Do you have a way to not just create but deliver your product? 6. The Durability Question Will your market position be defensible 10 and 20 years into the future? 7. The Secret Question Have you identified a unique opportunity that
Peter Thiel (Zero to One: Notes on Start Ups, or How to Build the Future)
Mercantilists promote the view that private market activity often drives the economy into difficulties which require government to intervene and set matters back on course. They typically characterize the economy as cyclical, driven to excesses by human emotions of greed and fear, which cause “bubbles” and “crashes” and interrupt steady progress of society. Government, they say, must prevent these cycles, smooth these bubbles and crashes, so as to achieve less volatility and greater stability in economic growth. Then they persuade government to adopt policies which produce cycles, bubbles, crashes, volatility, high taxes and unemployment, and economic instability —and monstrously large, illicit gains for themselves.
Wayne Jett (The Fruits of Graft: Great Depressions Then and Now)
Why Did the Stock Market Crash? The most persuasive explanation for the 1929 stock market crash blames the Federal Reserve. Throughout the 1920s, but particularly in 1927, the Fed pumped artificial credit into the loan market, pushing down interest rates from their free-market level. Lower interest rates exaggerated the feeling of prosperity, and misled businesses and investors. In a laissez-faire market where money and banking are not disturbed by the government, the interest rate is a price that tells borrowers how much capital citizens have saved and made available to fund projects. But when the Fed adopts an “easy-money” policy by pushing down interest rates, this signal is distorted and the interest rate no longer does its job of channeling the available capital into the most deserving projects. Instead, an unsustainable boom develops, with firms hiring workers and starting production processes that will have to be discontinued once the Fed slows down its injections of new money. Many economists point to the Fed hikes in interest rates during 1928 and 1929 as the cause of the stock market crash. In a sense this is true, but the deeper point is that the crash was made inevitable by the bubble in the stock market fueled by the artificially cheap credit preceding the hikes. In other words, when the Fed stopped pumping in gobs of new money that pushed up the stock market, investors came to their senses and asset prices plunged back towards their pre-bubble level.
Robert Murphy (The Politically Incorrect Guide to the Great Depression and the New Deal (The Politically Incorrect Guides))
Then came the so-called flash crash. At 2:45 on May 6, 2010, for no obvious reason, the market fell six hundred points in a few minutes. A few minutes later, like a drunk trying to pretend he hadn’t just knocked over the fishbowl and killed the pet goldfish, it bounced right back up to where it was before. If you weren’t watching closely you could have missed the entire event—unless, of course, you had placed orders in the market to buy or sell certain stocks. Shares of Procter & Gamble, for instance, traded as low as a penny and as high as $100,000. Twenty thousand different trades happened at stock prices more than 60 percent removed from the prices of those stocks just moments before. Five months later, the SEC published a report blaming the entire fiasco on a single large sell order, of stock market futures contracts, mistakenly placed on an exchange in Chicago by an obscure Kansas City mutual fund. That explanation could only be true by accident, because the stock market regulators did not possess the information they needed to understand the stock markets. The unit of trading was now the microsecond, but the records kept by the exchanges were by the second. There were one million microseconds in a second. It was as if, back in the 1920s, the only stock market data available was a crude aggregation of all trades made during the decade. You could see that at some point in that era there had been a stock market crash. You could see nothing about the events on and around October 29, 1929.
Michael Lewis (Flash Boys)
Mathias remembered that once when he was a boy, he'd gone up to a pile of red apples that lay in the market cart, in the market near Stolberg where his father often took him. He'd always loved apples, and he couldn't resist the temptation of grabbing one out of the pile. He chose the closest, a splendid red piece of fruit that he would never forget because of his overwhelming desire to take it and hide it in the folds of his clothing. A moment after Mathias reached out and snatched it, the pile slid and applies tumbled down all around him. The farmer, who knew his father, would have been satisfied with an apology. But his father, a successful craftsman who was well-known and respected in the town, had insisted on purchasing an entire basketful of apples, because of the trouble Mathias had caused. Mathias got the worst scolding his father had ever given him. Not because of the money, but for the small act of petty thievery, which an upright man like his father would never tolerate. He shouldered his punishment, and in the end was only allowed to eat as single apple from the basket. He spent the night thinking about the pile. He had to remove only one and the whole thing had come down. He wondered if the same thing might happen with any tower, no matter how majestic and imposing it might seem, were someone to remove the right stone from the base. The thought stayed with him throughout his life. Venice now seemed a lot like that pile of apples. If three murders truly represented an irresistible opportunity, then which nobleman would have seized it, knowing that such a thing would cause La Serenissima and everything it represented to come crashing down?
Riccardo Bruni (The Lion and the Rose)
Swift came to the table and bowed politely. “My lady,” he said to Lillian, “what a pleasure it is to see you again. May I offer my renewed congratulations on your marriage to Lord Westcliff, and…” He hesitated, for although Lillian was obviously pregnant, it would be impolite to refer to her condition. “…you are looking quite well,” he finished. “I’m the size of a barn,” Lillian said flatly, puncturing his attempt at diplomacy. Swift’s mouth firmed as if he was fighting to suppress a grin. “Not at all,” he said mildly, and glanced at Annabelle and Evie. They all waited for Lillian to make the introductions. Lillian complied grudgingly. “This is Mr. Swift,” she muttered, waving her hand in his direction. “Mrs. Simon Hunt and Lady St. Vincent.” Swift bent deftly over Annabelle’s hand. He would have done the same for Evie except she was holding the baby. Isabelle’s grunts and whimpers were escalating and would soon become a full-out wail unless something was done about it. “That is my daughter Isabelle,” Annabelle said apologetically. “She’s teething.” That should get rid of him quickly, Daisy thought. Men were terrified of crying babies. “Ah.” Swift reached into his coat and rummaged through a rattling collection of articles. What on earth did he have in there? She watched as he pulled out his pen-knife, a bit of fishing line and a clean white handkerchief. “Mr. Swift, what are you doing?” Evie asked with a quizzical smile. “Improvising something.” He spooned some crushed ice into the center of the handkerchief, gathered the fabric tightly around it, and tied it off with fishing line. After replacing the knife in his pocket, he reached for the baby without one trace of self-consciusness. Wide-eyed, Evie surrendered the infant. The four women watched in astonishment as Swift took Isabelle against his shoulder with practiced ease. He gave the baby the ice-filled handkerchief, which she proceeded to gnaw madly even as she continued to cry. Seeming oblivious to the fascinated stares of everyone in the room, Swift wandered to the window and murmured softly to the baby. It appeared he was telling her a story of some kind. After a minute or two the child quieted. When Swift returned to the table Isabelle was half-drowsing and sighing, her mouth clamped firmly on the makeshift ice pouch. “Oh, Mr. Swift,” Annabelle said gratefully, taking the baby back in her arms, “how clever of you! Thank you.” “What were you saying to her?” Lillian demanded. He glanced at her and replied blandly, “I thought I would distract her long enough for the ice to numb her gums. So I gave her a detailed explanation of the Buttonwood agreement of 1792.” Daisy spoke to him for the first time. “What was that?” Swift glanced at her then, his face smooth and polite, and for a second Daisy half-believed that she had dreamed the events of that morning. But her skin and nerves still retained the sensation of him, the hard imprint of his body. “The Buttonwood agreement led to the formation of the New York Stock and Exchange Board,” Swift said. “I thought I was quite informative, but it seemed Miss Isabelle lost interest when I started on the fee-structuring compromise.” “I see,” Daisy said. “You bored the poor baby to sleep.” “You should hear my account of the imbalance of market forces leading to the crash of ’37,” Swift said. “I’ve been told it’s better than laudanum.
Lisa Kleypas (Scandal in Spring (Wallflowers, #4))
No stories were viral. No celebrity was trending. The world was still big. The country was still vast. You could just be a little person, with your own little life and your own little thoughts. You didn’t have to have an opinion, and nobody cared if you did or did not. You could be alone on purpose, even in a crowd. The New York Times was chucked on doorsteps the following morning. There were disparate stories on page A1—the supply of stem cells, a controversy over school dress codes, the competitive morning TV market, and five others. The physical newspapers arrived to subscribers around the same time nineteen men with box cutters passed through low-security checkpoints in four different airports and boarded four cross-country domestic flights. The flights were hijacked, the planes crashed into buildings, 2,977 people died, and the nineties collapsed with the skyscrapers.
Chuck Klosterman (The Nineties: A Book)
Beyond serving as an inspiration to engineers, the group behavior of fireflies has broader significance for science as a whole. It represents one of the few tractable instances of a complex, self-organizing system, where millions of interactions occur simultaneously—when everyone changes the state of everyone else. Virtually all the major unsolved problems in science today have this intricate character. Consider the cascade of biochemical reactions in a single cell and their disruption when the cell turns cancerous; the booms and crashes of the stock market; the emergence of consciousness from the interplay of trillions of neurons in the brain; the origin of life from a meshwork of chemical reactions in the primordial soup. All these involve enormous numbers of players linked in complex webs. In every case, astonishing patterns emerge spontaneously. The richness of the world around us is due, in large part, to the miracle of self-organization.
Steven H. Strogatz (Sync: How Order Emerges From Chaos In the Universe, Nature, and Daily Life)
Instead of relying on the Newtonian metaphor of clockwork predictability, complexity seems to be based on metaphors more closely akin to the growth of a plant from a tiny seed, or the unfolding of a computer program from a few lines of code, or perhaps even the organic, self-organized flocking of simpleminded birds. That's certainly the kind of metaphor that Chris Langton has in mind with artificial life: his whole point is that complex, lifelike behavior is the result of simple rules unfolding from the bottom up. And it's likewise the kind of metaphor that influenced Arthur in the Santa Fe economics program: "If I had a purpose, or a vision, it was to show that the messiness and the liveliness in the economy can grow out of an incredibly simple, even elegant theory. That's why we created these simple models of the stock market where the market appears moody, shows crashes, takes off in unexpected directions, and acquires something that you could describe as a personality.
M. Mitchell Waldrop (Complexity: The Emerging Science at the Edge of Order and Chaos)
Instead, the battle is joined at the level of pure abstraction. The issue, the newest Right tells us, is freedom itself, not the doings of the subprime lenders or the ways the bond-rating agencies were compromised over the course of the last decade. Details like that may have crashed the economy, but to the renascent Right they are almost completely irrelevant. What matters is a given politician’s disposition toward free markets and, by extension, toward the common people of the land, whose faithful vicar the market is. Now, there is nothing really novel about the idea that free markets are the very essence of freedom. What is new is the glorification of this idea at the precise moment when free-market theory has proven itself to be a philosophy of ruination and fraud. The revival of the Right is as extraordinary as it would be if the public had demanded dozens of new nuclear power plants in the days after the Three Mile Island disaster; if we had reacted to Watergate by making Richard Nixon a national hero.
Thomas Frank (Pity the Billionaire: The Unexpected Resurgence of the American Right)
It's ironic that Juanita has come into this place in a low-tech, black-and-white avatar. She was the one who figured out a way to make avatars show something close to real emotion. That is a fact Hiro has never forgotten, because she did most of her work when they were together, and whenever an avatar looks surprised or angry or passionate in the Metaverse, he sees an echo of himself or Juanita - - the Adam and Eve of the Metaverse. Makes it hard to forget. Shortly after Juanita and Da5id got divorced, The Black Sun really took off. And once they got done counting their money, marketing the spinoffs, soaking up the adulation of others in the hacker community, they all came to the realization that what made this place a success was not the collision-avoidance algorithms or the bouncer daemons or any of that other stuff. It was Juanita's faces. Just ask the businessmen in the Nipponese Quadrant. They come here to talk turkey with suits from around the world, and they consider it just as good as a face-to-face. They more or less ignore what is being said -- a lot gets lost in translation, after all. They pay attention to the facial expressions and body language of the people they are talking to. And that's how they know what's going on inside a person's head-by condensing fact from the vapor of nuance. Juanita refused to analyze this process, insisted that it was something ineffable, something you couldn't explain with words. A radical, rosary-toting Catholic, she has no problem with that kind of thing. But the bitheads didn't like it. Said it was irrational mysticism. So she quit and took a job with some Nipponese company. They don't have any problem with irrational mysticism as long as it makes money. But Juanita never comes to The Black Sun anymore. Partly, she's pissed at Da5id and the other hackers who never appreciated her work. But she has also decided that the whole thing is bogus. That no matter how good it is, the Metaverse is distorting the way people talk to each other, and she wants no such distortion in her relationships.
Neal Stephenson (Snow Crash)
Let me illustrate what I mean by “the opportunity costs of working.” I was recently in the market for domestic help, and a young woman I wanted to hire as a housekeeper refused the job because I wouldn’t pay her under the table. No, she wasn’t an illegal alien—she just wanted me to treat her as one. The reason she made this unusual demand was that if she had income to report, she would suddenly have to start making student loan payments and paying taxes. To work for me would have cost her hundreds of dollars every month, creating a big enough hit to her bottom line that it wasn’t worth working anymore. (Perhaps she wasn’t savvy enough to apply for all of the available government programs, but she could have just as well pointed out that my hiring her would have cost her thousands annually in food stamps and other welfare payments.) Just imagine—there are so many unemployed people today, and yet government is making it too expensive for anyone to come and clean your floors for a fair wage. (By the way, the job I offered paid close to $40,000 per year.) Here was someone who admitted that reality quite bluntly—and I still regret the fact that I couldn’t hire her legally.
Peter Schiff (The Real Crash: America's Coming Bankruptcy - How to Save Yourself and Your Country)
As [President Thomas] Jefferson realized, with no government interference by setting the rules of the game of business and fair taxation, there could be no broad middle class—maybe a sliver of small businesses and artisans, but the vast majority of us would be the working poor under the yolk [sic] of elites. The Economic Royalists know this, which gets to the root of why they set out to destroy government's involvement in the economy. After all, in a middle-class economy, they may have to give up some of their power, and some of the higher end of their wealth may even be "redistributed"—horror of horrors—for schools, parks, libraries, and other things that support a healthy middle-class society but are not needed by the rich.... As Jefferson laid out in an 1816 letter...a totally "free" market, where corporations reign supreme just like the oppressive governments of old, could transform America 'until the bulk of the society is reduced to mere automatons of misery, to have no sensibilities left but for sinning and suffering. Then begins, indeed, the bellum omnium in omnia, which some philosophers observing to be so general in this world, have mistaken it for the natural, instead of the abusive state of man.
Thom Hartmann (The Crash of 2016: The Plot to Destroy America--and What We Can Do to Stop It)
But most investors do capitulate eventually. They simply run out of the resolve needed to hold out. Once the asset has doubled or tripled in price on the way up — or halved on the way down — many people feel so stupid and wrong, and are so envious of those who’ve profited from the fad or side-stepped the decline, that they lose the will to resist further. My favorite quote on this subject is from Charles Kindleberger: “There is nothing as disturbing to one’s well-being and judgment as to see a friend get rich” (Manias, Panics, and Crashes: A History of Financial Crises, 1989). Market participants are pained by the money that others have made and they’ve missed out on, and they’re afraid the trend (and the pain) will continue further. They conclude that joining the herd will stop the pain, so they surrender. Eventually they buy the asset well into its rise or sell after it has fallen a great deal. In other words, after failing to do the right thing in stage one, they compound the error by taking that action in stage three, when it has become the wrong thing to do. That’s capitulation. It’s a highly destructive aspect of investor behavior during cycles, and a great example of psychology-induced error at its worst.
Howard Marks (Mastering The Market Cycle: Getting the odds on your side)
Economics today creates appetites instead of solutions. The western world swells with obesity while others starve. The rich wander about like gods in their own nightmares. Or go skiing in the desert. You don’t even have to be particularly rich to do that. Those who once were starving now have access to chips, Coca-Cola, trans fats and refined sugars, but they are still disenfranchized. It is said that when Mahatma Gandhi was asked what he thought about western civilization, he answered that yes, it would be a good idea. The bank man’s bonuses and the oligarch’s billions are natural phenomena. Someone has to pull away from the masses – or else we’ll all become poorer. After the crash Icelandic banks lost 100 billion dollars. The country’s GDP had only ever amounted to thirteen billion dollars in total. An island with chronic inflation, a small currency and no natural resources to speak of: fish and warm water. Its economy was a third of Luxembourg’s. Well, they should be grateful they were allowed to take part in the financial party. Just like ugly girls should be grateful. Enjoy, swallow and don’t complain when it’s over. Economists can pull the same explanations from their hats every time. Dream worlds of total social exclusion and endless consumerism grow where they can be left in peace, at a safe distance from the poverty and environmental destruction they spread around themselves. Alternative universes for privileged human life forms. The stock market rises and the stock market falls. Countries devalue and currencies ripple. The market’s movements are monitored minute by minute. Some people always walk in threadbare shoes. And you arrange your preferences to avoid meeting them. It’s no longer possible to see further into the future than one desire at a time. History has ended and individual freedom has taken over. There is no alternative.
Katrine Kielos (Who Cooked Adam Smith's Dinner?: A Story About Women and Economics)
Is power like the vis viva and the quantite d’avancement? That is, is it conserved by the universe, or is it like shares of a stock, which may have great value one day, and be worthless the next? If power is like stock shares, then it follows that the immense sum thereof lately lost by B[olingbroke] has vanished like shadows in sunlight. For no matter how much wealth is lost in stock crashes, it never seems to turn up, but if power is conserved, then B’s must have gone somewhere. Where is it? Some say ‘twas scooped up by my Lord R, who hid it under a rock, lest my Lord M come from across the sea and snatch it away. My friends among the Whigs say that any power lost by a Tory is infallibly and insensibly distributed among all the people, but no matter how assiduously I search the lower rooms of the clink for B’s lost power, I cannot seem to find any there, which explodes that argument, for there are assuredly very many people in those dark salons. I propose a novel theory of power, which is inspired by . . . the engine for raising water by fire. As a mill makes flour, a loom makes cloth and a forge makes steel, so we are assured this engine shall make power. If the backers of this device speak truly, and I have no reason to deprecate their honesty, it proves that power is not a conserved quantity, for of such quantities, it is never possible to make more. The amount of power in the world, it follows, is ever increasing, and the rate of increase grows ever faster as more of these engines are built. A man who hordes power is therefore like a miser who sits on a heap of coins in a realm where the currency is being continually debased by the production of more coins than the market can bear. So that what was a great fortune, when first he raked it together, insensibly becomes a slag heap, and is found to be devoid of value. When at last he takes it to the marketplace to be spent. Thus my Lord B and his vaunted power hoard what is true of him is likely to be true of his lackeys, particularly his most base and slavish followers such as Mr. Charles White. This varmint has asserted that he owns me. He fancies that to own a man is to have power, yet he has got nothing by claiming to own me, while I who was supposed to be rendered powerless, am now writing for a Grub Street newspaper that is being perused by you, esteemed reader.
Neal Stephenson (The System of the World (The Baroque Cycle, #3))
Slothrop is just settling down next to a girl in a prewar Worth frock and with a face like Tenniel’s Alice, same forehead, nose, hair, when from outside comes this most godawful clanking, snarling, crunching of wood, girls come running terrified out of the eucalyptus trees and into the house and right behind them what comes crashing now into the pallid lights of the garden but—why the Sherman Tank itself! headlights burning like the eyes of King Kong, treads spewing grass and pieces of flagstone as it manoeuvres around and comes to a halt. Its 75 mm cannon swivels until it’s pointing through the French windows right down into the room. “Antoine!” a young lady focusing in on the gigantic muzzle, “for heaven’s sake, not now. . . .” A hatch flies open and Tamara—Slothrop guesses: wasn’t Italo supposed to have the tank?—uh—emerges shrieking to denounce Raoul, Waxwing, Italo, Theophile, and the middleman on the opium deal. “But now,” she screams, “I have you all! One coup de foudre!” The hatch drops—oh, Jesus—there’s the sound of a 3-inch shell being loaded into its breech. Girls start to scream and make for the exits. Dopers are looking around, blinking, smiling, saying yes in a number of ways. Raoul tries to mount his horse and make his escape, but misses the saddle and slides all the way over, falling into a tub of black-market Jell-o, raspberry flavor, with whipped cream on top. “Aw, no . . .” Slothrop having about decided to make a flanking run for the tank when YYYBLAAANNNGGG! the cannon lets loose an enormous roar, flame shooting three feet into the room, shock wave driving eardrums in to middle of brain, blowing everybody against the far walls. A drape has caught fire. Slothrop, tripping over partygoers, can’t hear anything, knows his head hurts, keeps running through the smoke at the tank—leaps on, goes to undog the hatch and is nearly knocked off by Tamara popping up to holler at everybody again. After a struggle which shouldn’t be without its erotic moments, for Tamara is a swell enough looking twist with some fine moves, Slothrop manages to get her in a come-along and drag her down off of the tank. But loud noise and all, look—he doesn’t seem to have an erection. Hmm. This is a datum London never got, because nobody was looking. Turns out the projectile, a dud, has only torn holes in several walls, and demolished a large allegorical painting of Virtue and Vice in an unnatural act. Virtue had one of those dim faraway smiles. Vice was scratching his shaggy head, a little bewildered. The burning drape’s been put out with champagne. Raoul is in tears, thankful for his life, wringing Slothrop’s hands and kissing his cheeks, leaving trails of Jell-o wherever he touches. Tamara is escorted away by Raoul’s bodyguards. Slothrop has just disengaged himself and is wiping the Jell-o off of his suit when there is a heavy touch on his shoulder. “You were right. You are the man.” “That’s nothing.” Errol Flynn frisks his mustache. “I saved a dame from an octopus not so long ago, how about that?” “With one difference,” sez Blodgett Waxwing. “This really happened tonight. But that octopus didn’t.
Thomas Pynchon (Gravity's Rainbow)
Nevertheless, it would be prudent to remain concerned. For, like death, IT would come: Armageddon. There would be-without exaggeration-a series of catastrophes. As a consequence of the evil in man...-no mere virus, however virulent, was even a burnt match for our madness, our unconcern, our cruelty-...there would arise a race of champions, predators of humans: namely earthquakes, eruptions, tidal waves, tornados, typhoons, hurricanes, droughts-the magnificent seven. Floods, winds, fires, slides. The classical elements, only angry. Oceans would warm, the sky boil and burn, the ice cap melt, the seas rise. Rogue nations, like kids killing kids at their grammar school, would fire atomic-hydrogen-neutron bombs at one another. Smallpox would revive, or out of the African jungle would slide a virus no one understood. Though reptilian only in spirit, the disease would make us shed our skins like snakes and, naked to the nerves, we'd expire in a froth of red spit. Markets worldwide would crash as reckless cars on a speedway do, striking the wall and rebounding into one another, hurling pieces of themselves at the spectators in the stands. With money worthless-that last faith lost-the multitude would riot, race against race at first, God against God, the gots against the gimmes. Insects hardened by generations of chemicals would consume our food, weeds smother our fields, fire ants, killer bees sting us while we're fleeing into refuge water, where, thrashing we would drown, our pride a sodden wafer. Pestilence. War. Famine. A cataclysm of one kind or another-coming-making millions of migrants. Wearing out the roads. Foraging in the fields. Looting the villages. Raping boys and women. There'd be no tent cities, no Red Cross lunches, hay drops. Deserts would appear as suddenly as patches of crusty skin. Only the sun would feel their itch. Floods would sweep suddenly over all those newly arid lands as if invited by the beach. Forest fires would burn, like those in coal mines, for years, uttering smoke, making soot for speech, blackening every tree leaf ahead of their actual charring. Volcanoes would erupt in series, and mountains melt as though made of rock candy till the cities beneath them were caught inside the lava flow where they would appear to later eyes, if there were any eyes after, like peanuts in brittle. May earthquakes jelly the earth, Professor Skizzen hotly whispered. Let glaciers advance like motorboats, he bellowed, threatening a book with his fist. These convulsions would be a sign the parasites had killed their host, evils having eaten all they could; we'd hear a groan that was the going of the Holy Ghost; we'd see the last of life pissed away like beer from a carouse; we'd feel a shudder move deeply through this universe of dirt, rock, water, ice, and air, because after its long illness the earth would have finally died, its engine out of oil, its sky of light, winds unable to catch a breath, oceans only acid; we'd be witnessing a world that's come to pieces bleeding searing steam from its many wounds; we'd hear it rattling its atoms around like dice in a cup before spilling randomly out through a split in the stratosphere, night and silence its place-well-not of rest-of disappearance. My wish be willed, he thought. Then this will be done, he whispered so no God could hear him. That justice may be served, he said to the four winds that raged in the corners of his attic.
William H. Gass (Middle C)
The underpinning of their interest is the macro backdrop. The financial crisis is likely to be shorter-lived than the financial markets expect, they believe, because the Federal Reserve is poised to unleash powerful weapons of monetary policy on an unprecedented scale—in coordination with its counterparts overseas. The credit crunch will be overwhelmed by a sea of liquidity. This gift of almost a trillion dollars of freshly printed cash from the Fed alone will lift stock and debt markets to the point that investors will forget the jagged falls and crashes that have been torturing them in recent months. To be blunt, things will not stay cheap for long. It is an excellent time to buy a good business.
Sachin Khajuria (Two and Twenty: How the Masters of Private Equity Always Win)
The Chicago boys and their mentors had the good sense to maintain the highly efficient, nationalized copper producer Codelco, the world’s largest. That’s, of course, a radical violation of market principles, of neoliberal principles, but worthwhile since the company was the source of much of Chile’s export earnings and the basis of the state’s fiscal revenues. In general, it was close to a perfect experiment. It looked like a great success, if you ignored the human costs. In 1982, Friedman published the second edition of his manifesto, Capitalism and Freedom, celebrating the triumph of the cause. The timing was auspicious. In 1982 the Chilean economy crashed and had to be bailed out by state intervention. The state then controlled more of the economy than it had under Allende. Analysts who had their eyes open called it “the Chicago road to socialism.” The prominent OECD (Organisation for Economic Co-operation and Development) economist Javier Santiso described the “paradox [that] able economists committed to laissez-faire showed the world yet another road to a de facto socialized banking system
Noam Chomsky (Consequences of Capitalism: Manufacturing Discontent and Resistance)
In earlier days, advocacy of free markets was a progressive doctrine. It was upheld by the rascal multitude and the radicals of the English revolution. The idea was that free markets would eliminate hierarchy and subordination to authority. They would free people from autocratic systems, from state, church, landlords. Free markets would enable them to become self-employed, self-ruled. That was the ideal for John Locke, Adam Smith, Thomas Paine, Abraham Lincoln, other classical liberals. All of that crashed with the Industrial Revolution of the nineteenth century. Everything changed, but it’s very important to understand the classical liberal reasoning, which has considerable resonance right to today. Take Adam Smith again. All people have “an equal right to the earth,” he held, and it’s absurd to claim that land ownership should be restrained by “the fancy of those who died perhaps five hundred years ago.” Great estates should be broken up and sold equitably.
Noam Chomsky (Consequences of Capitalism: Manufacturing Discontent and Resistance)
Yo mama so fat that when she skips a meal the stock market crashes
Joey Fisher
The stock market crash of ’29 did more damage to this country than either of the World Wars or the Cold War, and that was triggered by uncertainty and chaos.
David Archer (Russian Roulette (Alex Mason #5))
The cryptocurrency community never expected to ask whether TerraUSD (UST) or LUNA would hit $1 first. Recently in mid of May, the dramatic drop of a stablecoin named TerraUSD and Terra Luna rattled the entire crypto market, and other tokens such as bitcoin and tether also struggled. Terra Luna is currently almost useless. Some have also connected this crash to the financial meltdown of 2008. After all, it is the darkest moment in the crypto-verse since the bankruptcy crisis that forced the closure of the Mt. Gox exchange in 2014. But what actually happened? What impact will this have on the rest of the crypto ecosystem? What is Terra, and why does it have a sister currency named Luna? Here's everything you need to know. What are Terra LUNA and Terra USD(UST)? Mechanism of Terra Following this crash, there is uncertainty among cryptocurrency enthusiasts; many of them called it the Luna crash, and some called it the Terra crash. Even though it is a stablecoin, UST also crashed. Let’s clarify this- Terra is a blockchain network that focuses on producing stablecoins. Technically, Terra is the crypto asset, while LUNA is the sign for its native cryptocurrency. Terra’s ecosystem is composed of two different types of tokens: LUNA and a group of stablecoins. Stablecoins from the first generation, like Tether, keep their value by leveraging a variety of assets, including fiat reserves. However, some supporters of decentralization contend that having a single body in charge of a collection of physical assets creates a single point of failure. Risks such as opaque governance structures and the question of whether the reserves held to correspond to those declared are brought about by this, which focuses regulatory attention. Decentralized stablecoins attempt to overcome these governance problems by keeping their pegs through algorithms as opposed to huge currency and debt reserves. One such algorithmic product is TerraUSD (UST), created by Terraform Labs. UST is an algorithmic stablecoin in the ecosystem of Terra. Unlike fiat-backed stablecoins like USDC and BUSD, UST is not backed by physical assets. Instead, UST uses algorithms to keep its value pegged to $1 and is backed by a sister token called LUNA. When the price of UST increases too much, its algorithms create additional LUNA to reduce the price, or the opposite if the price decreases too much. LUNA is intended to act as a sort of price shock absorber for UST. Just like any other stablecoin, users must be able to exchange one UST (even if it is worth less than $1) for one LUNA for this mechanism to stabilize the price to function.
coingabbar
Books In addition to podcasts, several books have significantly shaped my worldview and perspective as an investor. These are the ones I found most influential and deserving of attention in the real estate and entrepreneurship spaces. Real Estate, Investing, Sales, and Negotiation: • Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!, by Robert T. Kiyosaki • Mastering the Market Cycle: Getting the Odds on Your Side, by Howard Marks • The Due Diligence Handbook For Commercial Real Estate: A Proven System To Save Time, Money, Headaches And Create Value When Buying Commercial Real Estate, by Brian Hennessey • Principles: Life and Work, by Ray Dalio • Pitch Anything: An Innovative Method for Presenting, Persuading, and Winning the Deal, by Oren Klaff • Never Split the Difference: Negotiating as if Your Life Depended on It, by Chris Voss Non-Real Estate: • Double Double: How to Double Your Revenue and Profit in 3 Years or Less, by Cameron Herold • Clockwork: Design Your Business to Run Itself, by Mike Michalowicz • How an Economy Grows and Why It Crashes, by Peter Schiff • Economics in One Lesson: The Smartest and Surest Way to Understand Basic Economics, by Henry Hazlitt • What Has Government Done to Our Money, by Murray M. Rothbard • Own the Day, Own Your Life: Optimized Practices for Waking, Working, Learning, Eating, Training, Playing, Sleeping, and Sex, by Aubrey Marcus • The Charisma Myth: How Anyone Can Master the Art and Science of Personal Magnetism, by Olivia Fox Cabane • Deep Work: Rules for Focused Success in A Distracted World, by Cal Newport
Hunter Thompson (Raising Capital for Real Estate: How to Attract Investors, Establish Credibility, and Fund Deals)
In the general desolation, amidst the rubble, Rask was the only man standing. And he stood taller than ever, since most of the other speculators’ losses had been his gain. He had always benefited from chaos and turmoil, as his masterful operations during the ticker delays repeatedly had proven, but what happened over the last months of 1929 had no precedent. Once this picture became clear enough, the public was quick to react. It had been Rask who engineered the whole crash to begin with, people said. Slyly, he had whetted a reckless appetite for debts he knew all along could never be honored. Subtly, he had been dumping his stocks and driving the market down. Artfully, he had leaked rumors and stoked paranoia. Mercilessly, he had overthrown Wall Street and kept it under his thumb with his selling spree the day right before Black Thursday. Everything—the breaks in the market, the uncertainty, the bearishness leading to panic selling, and eventually the crash that would ruin multitudes—had been orchestrated by Rask. His was the hand behind the invisible hand.
Hernan Diaz (Trust)
To be a mother I must leave the telephone unanswered, work undone, arrangements unmet. To be myself I must let the baby cry, must forestall her hunger or leave her for evenings out, must forget her in order to think about other things. To succeed in being one means to fail at being the other. The break between mother and self was less clean than I had imagined it in the taxi: and yet it was a premonition, too; for later, even in my best moments, I never feel myself to have progressed beyond this division. I merely learn to legislate for two states, and to secure the border between them. At first, though, I am driven to work at the newer of the two skills, which is motherhood; and it is with a shock that I see, like a plummeting stock market, the resulting plunge in my own significance. Consequently I bury myself further in the small successes of nurture. After three or four weeks I reach a distant point, a remote outpost at which my grasp of the baby’s calorific intake, hours of sleep, motor development and patterns of crying is professorial, while the rest of my life resembles a deserted settlement, an abandoned building in which a rotten timber occasionally breaks and comes crashing to the floor, scattering mice. I am invited to a party, and though I decide to go, and bathe and dress at the appointed hour, I end up sitting in the kitchen and crying while elsewhere its frivolous minutes tick by and then elapse. The baby develops colic, and the bauble of motherhood is once more crushed as easily as eggshell. The question of what a woman is if she is not a mother has been superceded for me by that of what a woman is if she is a mother; and of what a mother, in fact, is.
Rachel Cusk (A Life's Work: On Becoming a Mother)
Star businesses needn’t be anything to do with technology. Only one of my five stars is a technology venture. The longest-running star business is surely the Coca-Cola Company, incorporated in 1888 and a consistent star business until the 1990s. For over a century, despite two world wars, the stock market crash of 1929 and the ensuing Great Depression, Coca-Cola remained a star. The global market for cola increased on trend by more than 10 per cent every year and Coke remained the dominant player in that market. The value of the company increased with remarkable consistency, even bucking the trend and rising from 1929 to 1945.The company used World War Two to its immense advantage. After Pearl Harbor, Coke boss Robert Woodruff pledged to ‘see that every man in uniform gets a bottle of Coca-Cola for five cents, wherever he is and whatever it costs our company’. The US administration exempted Coca-Cola that was sold to the military from all sugar rationing. The US Army gave Coke employees installing plants behind the front lines the pseudo-military status of ‘technical observers’. These ‘Coca-Cola Colonels’ were exempt from the draft but actually wore Army uniforms and carried military rank according to their company salaries. General Eisenhower, a self-confessed Coke addict, cabled urgently from North Africa on 29 June, 1943: ‘On early convoy request shipment three million bottled Coca-Cola (filled) and complete equipment for bottling, washing, capping same quantity twice monthly . . .’2 Coke became familiar throughout Europe during the war and continued its remarkably cosy arrangement with the US military in Germany and Japan during the postwar occupation. From the 1950s, Coke rode the wave of internationalisation. Roberto Goizueta, the CEO from 1980 to 1997, created more wealth for shareholders than any other CEO in history. He became the first CEO who was not a founder to become a billionaire. The business now rates a value of $104 billion.
Richard Koch (The Star Principle: How it Can Make You Rich)
The businessmen to whom, before meetings, I show the collection glance with superficial curiosity at these bizarre apparatuses. They don’t know that I have built my financial empire on the very principle of kaleidoscopes and catoptric instruments, multiplying, as if in a play of mirrors, companies without capital, enlarging credit, making disastrous deficits vanish in the dead corners of illusory perspectives. My secret, the secret of my uninterrupted financial victories in a period that has witnessed so many crises and market crashes and bankruptcies, has always been this: that I never thought directly of money, business, profits, but only of the angles of refraction established among shining surfaces variously inclined.
Italo Calvino (If On A Winter's Night A Traveler)
Back in the late 1970s, the very affluent Hunt brothers decided to bring about the remonetization of silver and started buying enormous quantities of silver, driving the price up. Their rationale was that as the price rose, more people would want to buy, which would keep the price rising, which in turn would lead to people wanting to be paid in silver. Yet, no matter how much the Hunt brothers bought, their wealth was no match for the ability of miners and holders of silver to keep selling silver onto the market. The price of silver eventually crashed and the Hunt brothers lost over $1bn, probably the highest price ever paid for learning the importance of the stock‐to‐flow ratio, and why not all that glitters is gold.3 (See Figure 2.4)
Saifedean Ammous (The Bitcoin Standard: The Decentralized Alternative to Central Banking)
Ocean, the future center of global trade. Why should it not prosper? Nobody can predict the future with 100 percent certainty. I’m not convinced it will happen. But I am a possibilist and these facts convince me: it is possible. The destiny instinct makes it difficult for us to accept that Africa can catch up with the West. Africa’s progress, if it is noticed at all, is seen as an improbable stroke of good fortune, a temporary break from its impoverished and war-torn destiny. The same destiny instinct also seems to make us take continuing Western progress for granted, with the West’s current economic stagnation portrayed as a temporary accident from which it will soon recover. For years after the global crash of 2008, the International Monetary Fund continued to forecast 3 percent annual economic growth for countries on Level 4. Each year, for five years, countries on Level 4 failed to meet this forecast. Each year, for five years, the IMF said, “Next year it will get back on track.” Finally, the IMF realized that there was no “normal” to go back to, and it downgraded its future growth expectations to 2 percent. At the same time the IMF acknowledged that the fast growth (above 5 percent) during those years had instead happened in countries on Level 2, like Ghana, Nigeria, Ethiopia, and Kenya in Africa, and Bangladesh in Asia. Why does this matter? One reason is this: the IMF forecasters’ worldview had a strong influence on where your retirement funds were invested. Countries in Europe and North America were expected to experience fast and reliable growth, which made them attractive to investors. When these forecasts turned out to be wrong, and when these countries did not in fact grow fast, the retirement funds did not grow either. Supposedly low-risk/high-return countries turned out to be high-risk/low-return countries. And at the same time African countries with great growth potential were being starved of investment. Another reason it matters, if you work for a company based in the old “West,” is that you are probably missing opportunities in the largest expansion of the middle-income consumer market in history, which is taking place right now in Africa and Asia. Other, local brands are already establishing a foothold, gaining brand recognition, and spreading throughout these continents, while you are still waking up to what is going on. The Western consumer market was just a teaser for what is coming next.
Hans Rosling (Factfulness: Ten Reasons We're Wrong About the World—and Why Things Are Better Than You Think)
Instead, there had already been an active conspiracy theory claiming that shape-shifting reptilian aliens from the planet Flumbo were secretly taking the place of normal human beings. The Flumbonians had been accused of being behind everything from crashing the stock market to rigging the Super Bowl to ruining the last season of Game of Thrones.
Stuart Gibbs (Spy School Project X)
Kennedy vowed that before he was thirty-five years old, he intended to make a million dollars. The 1929 stock market crash didn’t damage the family’s wealth; Kennedy had become a multi-millionaire during the booming 1920s and prospered during the Depression; the canny Irishman credited his sense of timing with his prosperity, and by 1935 he was worth $180 million.
Hourly History (John F. Kennedy: A Life From Beginning to End)
Markets did not see the crash coming in 2008. And they did not see the crash coming in 2020. That's not what markets do. Understanding what's coming next is up to you.
James Rickards (The New Great Depression: Winners and Losers in a Post-Pandemic World)
Ticker tape fever. During the run-up to the 1929 crash on Wall Street, many people had become addicted to playing the stock market, and this addiction had a physical component—the sound of the ticker tape that electronically registered each change in a stock’s price. Hearing that clicking noise indicated something was happening, somebody was trading and making a fortune. Many felt drawn to the sound itself, which felt like the heartbeat of Wall Street. We no longer have the ticker tape. Instead many of us have become addicted to the minute-by-minute news cycle, to “what’s trending,” to the Twitter feed, which is often accompanied by a ping that has its own narcotic effects. We feel like we are connected to the very flow of life itself, to events as they change in real time, and to other people who are following the same instant reports. This need to know instantly has a built-in momentum. Once we expect to have some bit of news quickly, we can never go back to the slower pace of just a year ago. In fact, we feel the need for more information more quickly. Such impatience tends to spill over into other aspects of life—driving, reading a book, following a film. Our attention span decreases, as well as our tolerance for any obstacles in our path.
Robert Greene (The Laws of Human Nature)
During the best of times, Silicon Valley brimmed with opportunity. It seemed that every kid with a laptop and a hoodie could slap the dotcom suffix on the end of almost anything—stamps.com, shoes.com, drugstore.com, webvan.com, eToys.com, garden.com—and become a millionaire overnight. Venture capitalists poured money into these companies, and their valuations soared. But there’s no piece of music in which the crescendo doesn’t eventually crash. Most people can’t recognize when they’re in a bubble—or they don’t want to recognize it. Markets and industries are cyclical by nature. During periods of significant innovation, bubbles form because expectations grow faster than reality, and hope gets too far out in front of a future that doesn’t currently exist. The problem was that the structures, timing, and valuations of these startups were all dependent upon assumed growth and the execution of ambitious business plans, and those assumptions and executions often weren’t reasonable or achievable.
Christopher Varelas (How Money Became Dangerous: The Inside Story of Our Turbulent Relationship with Modern Finance)
One understands, then, why the Americans make such a show of their debt. The initiative is supposed to shame the State for its bad management and alert the citizens to an imminent collapse of the finances and public services. But the exorbitant scale of the figures robs them of all meaning. It is, in fact, just a massive advertising exercise and, indeed, the luminous billboard looks for all the world like a triumphant stock market index that has broken all records. The population contemplate it with the fascination they might accord to a world record (though few gather in front of the Beaubourg digital clock to see the run-in to the end of the century). At the same time, the people are collectively in the same situation as the Tupolev test pilot who right up to the last second could see his aircraft nose dive and crash into the ground on his internal video circuit. Did he, by some last-minute reflex, glance at the image as he died? He could have imagined himself living out his last moments in virtual reality. Did the image survive the man if only for a fraction of a second? Or was it the other way about? Does virtual reality survive the real world's catastrophic end?
Jean Baudrillard (Screened Out)
Let’s say you can spare $500 a month. By owning and dollar-cost averaging into just three index funds—$300 into one that holds the total U.S. stock market, $100 into one that holds foreign stocks, and $100 into one that holds U.S. bonds—you can ensure that you own almost every investment on the planet that’s worth owning.7 Every month, like clockwork, you buy more. If the market has dropped, your preset amount goes further, buying you more shares than the month before. If the market has gone up, then your money buys you fewer shares. By putting your portfolio on permanent autopilot this way, you prevent yourself from either flinging money at the market just when it is seems most alluring (and is actually most dangerous) or refusing to buy more after a market crash has made investments truly cheaper (but seemingly more “risky”).
Benjamin Graham (The Intelligent Investor)
It’s a lucrative business. Eastman is a compact, middle-aged guy with a weather-beaten face adorned with a scrap of white beard and mustache. He tops it all off with a cowboy-hat-shaped hard hat. Eastman’s father was in the construction business, and Eastman and his three brothers grew up greasing the trucks. By his own account, Eastman barely graduated from high school. But he took a bunch of night courses to learn things like project estimating, and started his own contracting business in 1994. His company did all kinds of contracting work, including a little beach renourishment, until the real estate market crash in 2006. Eastman realized that he would do better to rely on the steady forces of erosion and the government funding earmarked to fight it than to tie his fortunes to the vicissitudes of the real estate market. “When the market dried up, we reinvented ourselves,” he says. Today Eastman Aggregate Enterprises does nothing but beach nourishment, all over Florida and in neighboring states. Eastman has five of his own trucks and forty-plus people working for him. His company hauls in about $15 million per year.
Vince Beiser (The World in a Grain: The Story of Sand and How It Transformed Civilization)
Unfortunately, one of the things that is lacking in our society is a good financial education. Most people barely understand what the stock market is and how it operates, and options are a level above even that.
William Rogers (Options Trading Crash Course: The Beginner’s Guide to Make Money with Options Trading: Best Strategies for Make a Living from Passive Income and Quick Start to Your Financial Freedom)
As we see it, a single man-made stock-market crash, a single computer virus invasion, or a single rumor or scandal that results in a fluctuation in the enemy country’s exchange rates or exposes the leaders of an enemy country on the Internet, all can be included in the ranks of new-concept weapons.
Qiao Liang (Unrestricted Warfare: China's Master Plan to Destroy America)
Since Leland and Rubinstein were hitching a ride with Black and Scholes, portfolio insurance would rely on these “ideal conditions” and would fail when reality intruded.
Scott Nations (A History of the United States in Five Crashes: Stock Market Meltdowns That Defined a Nation)
In an email to Robertson, the whistleblower Sunny described how Ranbaxy used hidden areas of the plant to store and cover up testing machines that were not connected to the company’s main computer network. He was referring to the crucial high-performance liquid chromatography (HPLC) machines, the workhorses of any good testing laboratory. The bulky machines looked like a stack of computer printers. Once a drug sample is mixed with a solvent, injected into the machine, and pressed through a column filled with granular material, the machine separates out and measures the drug’s components, including impurities. It displays them as a series of peaks on a graph called a chromatogram. In a compliant laboratory, HPLC machines would be networked with the main computer system, making all their data visible and preserved. During a recent inspection, Sunny wrote, the unauthorized HPLC machines were kept in two ancillary labs: “Ranbaxy creates small such hidden areas where these manipulations can be done.” Sunny estimated that some thirty products on the U.S. market did not pass specifications and advised Robertson that the agency needed to raid Paonta Sahib and Dewas, just as it had done in New Jersey, to find the evidence. He warned, “The move has already started in Ranbaxy to share such details of problematic products personally and not on emails or letters.” But because the U.S. Attorney had no jurisdiction in India, the FDA couldn’t execute a search warrant there. Robertson felt thwarted: “People said, ‘You need to go to India.’” But her response was, “What am I going to do [over there], knock on people’s doors and hope they talk to me? I don’t have authority over in India. It’s all a voluntary, good-faith system.” The case had crashed like a wrecking ball into the overtaxed agency, exposing the fact that the FDA had no effective way to police a foreign drug company.
Katherine Eban (Bottle of Lies: The Inside Story of the Generic Drug Boom)
In my adult years, fighting hearing-impaired loss, I went to an audiologist who, it turns out, was Irish Catholic. On his graph, when he identified a loss so severe that it looked like a stock market crash—and knowing my northern roots—he asked if I had ever been in a mining accident. A dramatic hearing drop, trouble with high-pitch p, f, t, s consonants starting so many words, suggested that an accident had damaged my hearing. “No, a loud Catholic family,” was my best guess. The audiologist laughed. He had a club membership.
Rick Prashaw (Father Rick Roamin' Catholic)
Philosopher Paul Virilio Once Said: “when You Invent The Plane, You Invent The Plane Crash”. That's Our Industry Attitude Towards Ai
Simone Puorto
Money Block #1: Precious Metals (20% of your total assets) Money Block #2: Global Dominators (Stocks) (30% of your total assets) Money Block #3: Cash Cows (High Yield Stocks) (20% of your total assets) Money Block #4: Lockbox IOUs (Bonds) (10% of your total assets) Money Block #5: Global Cash (10% of your total assets) Money Block #6: Money Hedge (10% of your total assets) The allocation of cash to different Money Blocks in the Wealth Shield Portfolio allows you the liquidity and flexibility of being able to access your money, being able to convert your money and being able to grow your money.
Jim Woods (The Wealth Shield: A Wealth Management Guide: How to Invest and Protect Your Money from Another Stock Market Crash, Financial Crisis or Global Economic Collapse)
By having a percentage of your cash held in the physical gold and silver, you'll have assets that are quickly convertible to cash, in any currency, anywhere in the world. You can also use gold and silver to barter for goods and services if there is ever a global currency crisis. Other precious metals to consider holding are platinum, palladium and copper. You can invest in these alternative metals via ETFs, rather than taking physical possession of the metals, and you can use those ETFs for potential capital appreciation in this Money Block.
Jim Woods (The Wealth Shield: A Wealth Management Guide: How to Invest and Protect Your Money from Another Stock Market Crash, Financial Crisis or Global Economic Collapse)
The stock market crash finds a continuation in the takeover frenzy. It is no longer stocks and shares being bought, but companies being bought up. A virtual effervescence is created, with a potential impact on economic restructuring which, in spite of what is said, is purely speculative. The hope is that this enforced circulation will produce a broker's commission — exactly as on the Stock Exchange . Not even an objective profit exactly: the profit from speculation is not exactly surplus value, and what is at stake here is certainly not what is at stake in classical capitalism. Speculation, like poker or roulette, has its own runaway logic, a chainreaction logic, a process of intensification [Steigerung], in which the thrill of the game and of bidding up the stakes plays a considerable role. This is why there is no point criticizing it on the basis of economic logic (this is what makes these phenomena so exciting: the economic being overtaken by a random, vertiginous form). The game is such as to become suicidal: big companies end up buying back their own shares, which is nonsensical from the economic point of view: they end up mounting takeover bids for themselves! But this is all part of the same madness. In the case of takeovers, companies are not traded - do not circulate - as real capital, as units of production; they are traded as a quantity of shares, as a mere probability of production , which is enough to create a virtual movement within the economy. That this will be a prelude to other crashes is highly probable, for the same reasons as apply in the case of stocks and shares: things are circulating too quickly. We might imagine labour itself - labour power — moving into this speculative orbit too. The worker would no longer sell his labour power for a wage, as in the classic capitalist process, but sell his job itself, his employment. And he would buy others and sell them on again, as their stock went up or down on the Labour Exchange (the term would then assume its full meaning). It would not be so much a question of doing the jobs as keeping them circulating, creating a virtual movement of employment which substituted for the real movement of labour.
Jean Baudrillard (Screened Out)
Ed Mana of Technology on Demand,
Raj Khera (The IT Marketing Crash Course: How to Get Clients for Your Technology Business)
The amateurs usually do not have cash flow, which sets up a downfall, or “crash,” one sees in the cyclical real estate market.
Donald J. Trump (Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies)
A few thousand miles away, Nine Inch Nails' rock star Trent Reznor sauntered off a concert stage as the crowd roared. Security guards rushed to his side. Screaming groupies pushed backstage. Trent nodded and waved, heading back through the crowd. He didn't have time for this. There were more important things waiting. He stepped onto his tour bus, forsaking the drugs, the beer, the women, for the computer awaiting him. It was time again for Doom. Scenes like these had spread around the world since the game crashed the University of Wisconsin's network on December 10. With out an ad campaign, without marketing or advance hype from the mainstream media, Doom became an overnight phenomenon
David Kushner (Masters of Doom: How Two Guys Created an Empire and Transformed Pop Culture)
I invest for a living. I look for where other people are making mistakes. I look for companies or commodities that are mis-valued by the market, and I study who
Peter D. Schiff (The Real Crash: America's Coming Bankruptcy - How to Save Yourself and Your Country)
In the five hours the market had gone mad on October 29, it was later estimated that almost as much money in capital value vanished into thin air as the United States had spent on World War I. The loss was around ten times the budget of the Union in the entire Civil War.
Gordon Thomas (The Day the Bubble Burst: A Social History of the Wall Street Crash of 1929)
China’s government is deeply concerned about any loss of confidence in the country’s fragile financial markets, both legitimate and shadow. If a financial crisis were to cause the economy to crash, it would jeopardise the Party’s hold on power, not to mention a huge writedown in the value of assets owned by the red aristocracy. When China’s stock market was crashing in June 2015, a directive was issued to state media ordering them to change their reporting so as to ‘rationally lead market expectations’.99 They were directed to halt all discussions and expert interviews. The directive went on: ‘Do not exaggerate panic or sadness. Do not use emotionally charged words such as “slump”, “spike”, or “collapse”.’ Two months after the crash, a reporter for the respected business magazine Caijing, Wang Xiaolu, was arrested on charges of ‘spreading rumors’.
Clive Hamilton (Hidden Hand: Exposing How the Chinese Communist Party is Reshaping the World)
Nassim Taleb asked why, after a driver crashes his school bus, killing and injuring his passengers, he should be put in charge of another bus and asked to set up new safety rules.
Edward O. Thorp (A Man for All Markets: From Las Vegas to Wall Street, How I Beat the Dealer and the Market)
Business and Employer: Setting up and idea can be easy but getting it to run is another thing entirely. Most errors made by business innovators and start-ups entrepreneurs is they assume creation is same and nurturing. So they create funnels that leads to nowhere. Excessive digital marketing without customers receptive and retention relations will crash your business and ideas. Hurrey Syndrome: this is why they sing hurrey on their first sales and the second one would take another year with exhaustive online hosting expenses plus digital marketing; joining every group just to post and excessively irritating every post just to get seen. Correction/Fix: Research and study has shown that most successful business innovators and start-ups experts attained the level of professionalism via training and taking professional courses. Take more courses, learn more be equipped before you jump. I am Victor Vote VV&F
Victor UzihBen
For example, if you want to know the likelihood that the geese loitering near the LaGuardia Airport runway will cause your plane to crash-land in the Hudson River and the event will become the subject of a major motion picture, you go to see the undersecretary or deputy undersecretary for marketing and regulatory programs, which oversees the Animal and Plant Health Inspection Service, which handles the bewildering set of conflicts in America between people and animals.
Michael Lewis (The Fifth Risk)
For example, if you have a million dollars in savings, earning $20,000 from 2-percent taxable interest rate, and you earn more than $65,000 as a single person or $110,000 as a couple a year, that $20,000 will be taxed at approximately 30 percent, leaving you an effective return from your million dollars of about $14,000. That equates to an effective return of 1.4 percent before inflation.
Robert T. Kiyosaki (Rich Dad's Prophecy: Why the Biggest Stock Market Crash in History Is Still Coming...And How You Can Prepare Yourself and Profit from It!)
But now, looking back, the era since the fall of the Berlin Wall seems like one of complacency, of opportunities lost. Enormous inequalities – of wealth and opportunity – have been allowed to grow, between nations and within nations. In particular, the disastrous invasion of Iraq in 2003, and the long years of austerity policies imposed on ordinary people following the scandalous economic crash of 2008, have brought us to a present in which Far Right ideologies and tribal nationalisms proliferate. Racism, in its traditional forms and in its modernised, better-marketed versions, is once again on the rise, stirring beneath our civilised streets like a buried monster awakening. For the moment we seem to lack any progressive cause to unite us. Instead, even in the wealthy democracies of the West, we're fracturing into rival camps from which to compete bitterly for resources or power.
Kazuo Ishiguro (My Twentieth Century Evening and Other Small Breakthroughs: The Nobel Lecture)
On October 16, 1929, Fisher proudly proclaimed in the New York Times that stocks had reached a “permanently high plateau.”18 The stock market was to crash starting October 24, 1929, and as the Depression deepened, it would not be until the mid-1950s, years after Fisher died, that the stock market would get back to the “permanently high plateau” Fisher had proclaimed in 1929.
Saifedean Ammous (The Bitcoin Standard: The Decentralized Alternative to Central Banking)
Asked about the crash of 1973–74, when his investment partnership lost more than 50 percent, he notes that Berkshire’s stock price has also halved on three occasions: “If you’re going to be in this game for the long pull, which is the way to do it, you better be able to handle a fifty percent decline without fussing too much about it. And so my lesson to all of you is, conduct your life so that you can handle the fifty percent decline with aplomb and grace. Don’t try to avoid it. It will come. In fact, I would say if it doesn’t come, you’re not being aggressive enough.
William P. Green (Richer, Wiser, Happier: How the World's Greatest Investors Win in Markets and Life)
Mike had forgotten all about foosball and was now leafing through an armload of documents. “Here’s a contract with pirates to raid American settlements in the 1820s. And plans to crash the stock market in 1929. And a scheme to capture a giant gorilla and let it wreak havoc on New York City.…” “That’s the plot of King Kong,” I told him. “I guess not all their plans worked out,” Mike said. “It seems they couldn’t find a giant gorilla. But they did sell the idea to Hollywood for a lot of money.
Stuart Gibbs (Spy School Revolution (Spy School, #8))
markets in goods and services for immediate consumption – haircuts and hamburgers – work so well that it is hard to design them so they fail to deliver efficiency and innovation; while markets in assets are so automatically prone to bubbles and crashes that it is hard to design them so they work at all.
Matt Ridley (The Rational Optimist: How Prosperity Evolves)
If you have a farm and you have a bad year, nobody quotes your farm 50% below its actual intrinsic value. But in stocks, this does happen and happens very often.
Naved Abdali
The known is comfortable and easy. The unknown is painful and gut-wrenching. This is the reason people sell at the height of a market downturn.
Naved Abdali
Every transaction, irrespective of how low the price is, proves one fact; that there is a buyer on the other side. Somebody is buying.
Naved Abdali
Cash is never a king, especially when people repeat the phrase often.
Naved Abdali
It is not essential to know when the market will go down. The important thing is what you do when it does.
Naved Abdali
You must not be a seller if not a buyer in a massive down-turn.
Naved Abdali
A price drop is not an actual risk. The actual risk is not to know the reason why the price was dropped.
Naved Abdali
Predicting a downturn is not critical. The important thing is what you do when a significant downturn happens.
Naved Abdali
Some people claim that they predicted a downturn, but they forecast a downturn every day, and finally, one day, they are right. Even a broken clock is right twice a day.
Naved Abdali
Liquidity collapse is not the sign of the market bottom. It is instead a sign that the bottom is not far.
Naved Abdali
A liquidity crisis is ended by government actions and by government actions only. When you see that governments are providing liquidity support or have started talking about it, it is the time to start buying.
Naved Abdali
The detective assigned to my case told me that restraining orders turn to work out one of two ways—either the paper is good enough to scare off your abuser, or they double down and never stop unless they are thrown in jail. Unsurprisingly, Mine turned out to be the latter type, using the restraining order itself as an excuse to market his crusade against me to entirely new hate groups online.
Zoe Quinn (Crash Override: How Gamergate (Nearly) Destroyed My Life, and How We Can Win the Fight Against Online Hate)
The financial crisis didn't happen because its techniques didn't work; it happened because they worked all too well. There is an element of truth to Warren Buffett's characterization of these techniques as 'financial weapons of mass destruction.' Securization, credit default swaps, and other derivative securities are the financial equivalent of Einstein's famous formula. Global financial markets contain enormous financial energy, and when detonated in an uncontrolled and irresponsible manner, you get bubbles, crashes, and years of nuclear fallout. But the analogy works both ways - it also implies that when we use these tools carefully and responsibly, we get virtually unlimited power for fueling innovation and economic growth.
Andrew W. Lo (Adaptive Markets: Financial Evolution at the Speed of Thought)
Asked about the crash of 1973–74, when his investment partnership lost more than 50 percent, he notes that Berkshire’s stock price has also halved on three occasions: “If you’re going to be in this game for the long pull, which is the way to do it, you better be able to handle a fifty percent decline without fussing too much about it. And so my lesson to all of you is, conduct your life so that you can handle the fifty percent decline with aplomb and grace. Don’t try to avoid it. It will come. In fact, I would say if it doesn’t come, you’re not being aggressive enough.
William Green (Richer, Wiser, Happier: How the World’s Greatest Investors Win in Markets and Life)
the worst real estate crashes in history! And on the surface, it looks like you’d probably put this in your Risk Bucket. But here’s why I think it’s a safe investment: in 2008, when the real estate market just went through the floor, and the world was upside down, the prices of houses in most parts of the United States dropped 30% to 40%, max. There were a few exceptions, such as some parts of Las Vegas, Phoenix, and Miami, where the prices dropped more than 50%.
Anthony Robbins (MONEY Master the Game: 7 Simple Steps to Financial Freedom)
As a physics major, before getting her hands dirty in New York, she had assumed that money is printed by a nation’s central bank, from where it is distributed to commercial banks. But while this is indeed how cash is created, cash accounts for only 3 per cent of all money. What of the remaining 97 per cent? Surprise and then foreboding were the reactions of every student to whom she had explained how the missing 97 per cent was created – and by whom: not by central banks but by commercial and investment bankers. At this point, her students would ask, ‘Without access to state-sanctioned printing presses, how do private bankers create money?’ ‘Simple,’ she would reply. ‘Every time a banker approves a loan of, say, one million dollars for Jack, a typical business customer, the banker just types 1,000,000 on Jack’s bank statement. However incredible it may seem, that’s all it takes. Bankers create money by granting loans by typing in some numbers!’ The crucial thing, she would explain, is that these numbers are typed into a shared database – or ledger – to which only the bankers have access. When their customers transfer this ‘money’ between them – when Jack transfers numbers from his account to the account of a supplier, say Jill, or of a builder, say Bob, or of a worker, say Kate, and when in turn, Jill, Bob and Kate transfer their numbers on, in the same way, to others to whom they owe money – these numbers simply migrate from one cell in the database to another. For this system to be sustainable, and not merely a pyramid scheme, there is a single condition: that, somewhere down the line, the one million dollars which some banker typed into existence on Jack’s behalf results in new goods and services whose total market value exceeds one million dollars. It is from this surplus that the banker takes his interest and Jack his profit. This is what Iris was referring to as a fool’s wager when she said that bankers plundered value from the future, or when Costa had once claimed that capitalism, like science fiction, trades in future assets using fictitious currency. It is in their nature that the wealthier bankers become by creating money, the more money they tend to create. The danger of such a system, of course, is that the banks end up typing into existence sums of money vastly larger than the market value of the goods and services created as a result of Jack, Jill, Bob and Kate’s endeavours. At the point when the bankers have collectively created money sums greater than the resulting values, the present can no longer repay the future for the money it borrowed from it. The moment Jack, Jill, Bob and Kate get a whiff of this, they may demand their bank balances in cash, sensing that the total value on the bankers’ database is lower than the actual value of their customers’ assets. ‘At that point, a bank run sets in,’ Eva would tell her students, ‘and that’s when the system comes crashing down.
Yanis Varoufakis (Another Now: Dispatches from an Alternative Present)
Demographic Necrosis - It means society forgets the lessons of the past one funeral at a time. The stock market crashed in 1873 and again 56 years later in 1929, when life expectancy was also 56 years. Most people alive during the 1873 crash were dead by the time of the 1929 crash, 56 years later. They weren’t around to warn us. And it happened again 78 years later in 2007-2008, when life expectancy was 78 years.
Gary Rappard
So why bother developing your financial intelligence? Again, only you can answer that. I know why I continue to learn and develop. I do it because I know there are changes coming. I’d rather welcome change than cling to the past. I know there will be market booms and market crashes. I want to continually develop my financial intelligence because, at each market change, some people will be on their knees begging for their jobs. Others, meanwhile, will take the lemons that life hands them—and we are all handed lemons occasionally—and turn them into millions. That’s financial intelligence. I
Robert T. Kiyosaki (Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!)
Had I only known it, experiments in laboratories by the economist Vernon Smith and his colleagues have long confirmed that markets in goods and services for immediate consumption – haircuts and hamburgers – work so well that it is hard to design them so they fail to deliver efficiency and innovation; while markets in assets are so automatically prone to bubbles and crashes that it is hard to design them so they work at all.
Matt Ridley (The Rational Optimist (P.S.))
Technology stocks crash after forming history’s biggest stock market bubble—the culmination of irrational exuberance, decades of herd-like behavior, and the recent injection of cheap money and moral hazard by the Federal Reserve.
John Authers (The Fearful Rise of Markets: Global Bubbles, Synchronized Meltdowns, and How To Prevent Them in the Future,)
With financial markets deregulated and allowed back to their gambling-addictions, new derivative investments were being packaged with inflated, unrated sub-prime mortgages. Because they were pre-destined to crash, it provided the perfect setup to profit at the expense of cheating the public out of billions. It was a turning point in the 21st Century for the public to see that something was very unfair with the system. “Self” regulating banks and investment dealers packaged up junk mortgage-backed investments and dumped them on an unsuspecting public. The crash nearly brought the world economy to a halt, causing government to step in, and save the very people who caused the collapse.
Larry Elford (Farming Humans: Easy Money (Non Fiction Financial Murder Book 1))
big claim to fame was that the Golden Fleece—that magical sheepskin rug I’m related to—ended up in his kingdom, which made the place immune to disease, invasion, stock market crashes, visits from Justin Bieber, and pretty much any other natural disaster. Aeetes
Rick Riordan (Percy Jackson's Greek Gods)
Fill-In-the-Blank Headlines with Examples They Didn't Think I Could ________, but I Did. This headline works well for many reasons, including our natural tendency to root for the underdog. We're fascinated with stories of people who overcome great obstacles and others' ridicule to achieve success. When this headline refers to something you have thought about doing, but talked yourself out of, you'll want to know if the successful person shared your doubt or fear or handicap. Examples: They Laughed When I Sat Down at the Piano — but Not When I Started to Play! They Grinned When the Waiter Spoke to Me in French — but Their Laughter Changed to Amazement at My Reply! Who Else Wants ________? I like this type of headline because of its strong implication that a lot of other people know something the reader doesn't. Examples: Who Else Wants a Hollywood Actress' Figure? Who Else Needs an Extra Hour Every Day? How ________ Made Me ________ This headline introduces a first-person story. People love stories and are remarkably interested in other people. This headline structure seems to work best with dramatic differences. Examples: How a “Fool Stunt” Made Me a Star Salesman. How a Simple Idea Made Me “Plant Manager of the Year.” How Relocating to Tennessee Saved Our Company $1 Million a Year Are You ________? The question headline is used to grab attention by challenging, provoking, or arousing curiosity. Examples: Are You Ashamed of the Smells in Your House? Are You Prepared for the Next Stock Market Crash? How I ________ Very much like How ________ Made Me ________, this headline introduces a first-person story. The strength of the benefit at the end, obviously, controls its success. Examples: How I Raised Myself from Failure to Success in Selling. How I Retired at Age 40 — With a Guaranteed Income for Life.
Dan S. Kennedy (The Ultimate Sales Letter: Attract New Customers. Boost your Sales.)
there were, as had been feared, a large number of mutual-fund shareholders who demanded millions of dollars of their money in cash when the market crashed, but apparently the mutual funds had so much cash on hand that in most cases they could pay off their shareholders without selling substantial amounts of stock.
John Brooks (Business Adventures: Twelve Classic Tales from the World of Wall Street)
If you run out of market headroom, all that speed and momentum will come to a crashing halt as you slam into your market’s ceiling.
Reid Hoffman (Blitzscaling: The Lightning-Fast Path to Building Massively Valuable Companies)
In raw markets, the scent of money deadens all other sensory and ethical organs.
Charles R. Morris (The Two Trillion Dollar Meltdown: Easy Money, High Rollers, and the Great Credit Crash)
in the brave new world of absolute markets, it is not only dangerously naive to trust your mortgage broker, but based on recent scandals in college tuition lending, even your student aid counselor.
Charles R. Morris (The Two Trillion Dollar Meltdown: Easy Money, High Rollers, and the Great Credit Crash)
History records that there was only one Napoleon at the battle of Waterloo — and that he was too small for his job. The fact is there were two Napoleons at Waterloo, and the second one was big enough for his job, with some to spare. The second Napoleon was Nathan Rothschild — the emperor of finance. During the trying months that came before the crash Nathan Rothschild had plunged on England until his own fortunes, no less than those of the warring nations, were staked on the issue. He had lent money direct. He had discounted Wellington's paper. He had risked millions by sending chests of gold through war-swept territory where the slightest failure of plans might have caused its capture. He was extended to the limit when the fateful hour struck, and the future seemed none too certain. The English, in characteristic fashion, believed that all had been lost before anything was lost -— before the first gun bellowed out its challenge over the Belgian plains. The London stock market was in a panic. Consols were falling, slipping, sliding, tumbling. If the telegraph had been invented, the suspense would have been less, even if the wires had told that all was lost. But there was no telegraph. There were only rumors and fears. As the armies drew toward Waterloo Nathan Rothschild was like a man aflame. All of his instincts were crying out for news — good news, bad news, any kind of news, but news — something to end his suspense. News could be had immediately only by going to the front. He did not want to go to the front. A biographer of the family, Mr. Ignatius Balla, 1 declares that Nathan had " always shrunk from the sight of blood." From this it may be presumed that, to put it delicately, he was not a martial figure. But, as events came to a focus, his mingled hopes and fears overcame his inborn instincts. He must know the best or the worst and that at once. So he posted off for Belgium. He drew near to the gathering armies. From a safe post on a hill he saw the puffs of smoke from the opening guns. He saw Napoleon hurl his human missiles at Wellington's advancing walls of red. He did not see the final crash of the French, because he saw enough to convince him that it was coming, and therefore did not wait to witness the actual event. He had no time to wait. He hungered and thirsted for London as a few days before he had hungered and thirsted for the sight of Waterloo. Wellington having saved the day for him as well as for England, Nathan Rothschild saw an opportunity to reap colossal gains by beating the news of Napoleon's 1 The Romance of the Rothschilds, p. 88. 126 OUR DISHONEST CONSTITUTION defeat to London and buying the depressed securities of his adopted country before the news of victory should send them skyward with the hats of those whose brains were still whirling with fear. So he left the field of Waterloo while the guns were still booming out the requiem of all of Napoleon's great hopes of empire. He raced to Brussels upon the back of a horse whose sides were dripping with spur-drawn blood. At Brussels he paid an exorbitant price to be whirled in a carriage to Ostend. At Ostend he found the sea in the grip of a storm that shook the shores even as Wellington was still shaking the luck-worn hope of France. " He was certainly no hero," says Balla, " but at the present moment he feared nothing." Who would take him in a boat and row him to England? Not a boatman spoke. No one likes to speak when Death calls his name, and Rothschild's words were like words from Death. But Rothschild continued to speak. He must have a boatman and a boat. He must beat the news of Waterloo to England. Who would make the trip for 500 francs? Who would go for 800, 1,000? Who would go for 2,000? A courageous sailor would go. His name should be here if it had not been lost to the world. His name should be here and wherever this story is printed, because he said he would go if Rothschild would pay the 2,000 francs to the sailor's wife before
Anonymous
The widely mis-interpreted 1998 'meltdown' of East Asia was a financial symptom of the renewed reality: In fact, it was the first round the world recession again to begin in East Asia and spread from there to the West, instead of vice versa. That marked the beginnings of the return back 360 degrees around the world of the world economic center to Asia where it had always been before those two eighty-year period of temporary Western ascendance. The stock market crash in Hong Kong and the devaluation of the Thai baht and the Indonesian rupia took only 80 seconds to make themselves felt in the London City and on New York's Wall Street. How much of a cultural lag do we still need for popular perception and social theory to catch up with global reality?
André Gunder Frank
The new structure of the U.S. stock market had removed the big Wall Street banks from their historic, lucrative role as intermediary. At the same time it created, for any big bank, some unpleasant risks: that the customer would somehow figure out what was happening to his stock market orders. And that the technology might somehow go wrong. If the markets collapsed, or if another flash crash occurred, the high-frequency traders would not take 85 percent of the blame, or bear 85 percent of the costs of the inevitable lawsuits. The banks would bear the lion’s share of the blame and the costs. The relationship of the big Wall Street banks to the high-frequency traders, when you thought about it, was a bit like the relationship of the entire society to the big Wall
Michael Lewis (Flash Boys)
It took just over 15 years to recover the money invested at the 1929 peak, following a crash far worse than Smith had ever examined. And since World War II, the recovery period for stocks has been even better. Even including the recent financial crisis, which saw the worst bear market since the 1930s, the longest it has ever taken an investor to recover an original investment in the stock market (including reinvested dividends) was the five-year, eight-month period from August 2000 through April 2006.
Jeremy J. Siegel (Stocks for the Long Run: The Definitive Guide to Financial Market Returns & Long-Term Investment Strategies)
A brick could be used as a thick bumper sticker. Then if you get in a crash, you can blame it on the housing market and the element of irrational exuberance created by Alan Greenspan. 

Jarod Kintz (Rick Bet Blank)
Yes, and this is something I wrote an article about for CFA magazine recently[9]. Tape reading is more important than it ever was before, especially if you’re trading illiquid stocks. You can see when the internalizers are subpennying the offer, stepping in front of the offer. Sometimes it’s just market making. On a stock like GE, for example, they’re just trying to capture the spread, so I don’t think it means anything there. But if you get into the small or mid-caps, it can definitely give you an idea of the direction the stock will go. If the internalizers are willing to step in front of that offer, that means the smart money is placing its bets that the stock will go down, so you might want to aggressively sell it or hit the bid knowing that information. I believe tape reading is very important, and the subpenny trades provide valuable information for traders.
Fernando Oliveira (Traders of the New Era: Interviews with a Select Group of Day and Swing Traders Who are Still Beating the Markets in the Era of High Frequency Trading and Flash Crashes)
Most cleantech companies crashed because they neglected one or more of the seven questions that every business must answer: 1. The Engineering Question Can you create breakthrough technology instead of incremental improvements? 2. The Timing Question Is now the right time to start your particular business? 3. The Monopoly Question Are you starting with a big share of a small market? 4. The People Question Do you have the right team? 5. The Distribution Question Do you have a way to not just create but deliver your product? 6. The Durability Question Will your market position be defensible 10 and 20 years into the future? 7. The Secret Question Have you identified a unique opportunity that others don’t see?
Peter Thiel (Zero to One: Notes on Startups, or How to Build the Future)
the directors of the Tesco food-marketing business in South Korea set a goal to increase market share substantially and needed to find a creative way to do so. They looked at their customers and realized that their lives are so busy that it is actually quite stressful to find time to go to the store. So they decided to bring their store to the shoppers. They completely reframed the shopping experience by taking photos of the food aisles and putting up full-sized images in the subway stations. People can literally shop while they wait for the train, using their smartphones to buy items via photos of the QR codes and paying by credit card. The items are then delivered to them when they get home. This new approach to shopping boosted Tesco’s sales significantly.5
Tina Seelig (inGenius: A Crash Course on Creativity)
Obama wasn’t wrong to criticize Bush’s policies, but he was wrong to put the blame on “shred[ding] regulations.” More important, Obama didn’t mention the Fed’s culpability in the crisis, nor the way government guarantees of banks—explicit and implicit—drove banks to engage in the massively risky behavior that created the crisis. Of course, Obama wasn’t in a position to critique government guarantees of banks—he was supporting Bush’s TARP. I pick on Obama only as one example of the conventional wisdom that blames all economic problems on insufficient regulation. Hundreds of commentators and politicians said the free market was the cause, and that government would be the solution. The problem with our banking system has not been too little regulation, but too much. To curb excessive risk taking, we do need more “adult supervision,” as Obama put it, but that supervision should come not from government officials, but from creditors and customers. So, the big-government types are correct that our financial system is dysfunctional, and that this dysfunction is the key destabilizing factor in our economy. But the solution isn’t more regulation, or even “smarter regulation.” To fix our financial sector and make our economy more stable, we need something far more drastic: an actual free market. Government needs to stop telling banks what to do and stop bailing them out when they fail. No regulator will ever be as effective as the threat of failure.
Peter Schiff (The Real Crash: America's Coming Bankruptcy - How to Save Yourself and Your Country)
In the 1920s, he decided that it was cheaper to drill for oil than to buy the overvalued shares of other oil companies. After the 1929 stock market crash, he completely changed tack; he saw that oil shares were selling at a great discount to assets, and he turned to prospecting for oil on the floor of the stock exchange—in
Daniel Yergin (The Prize: The Epic Quest for Oil, Money, and Power)
The Abyss. Globalization had many economic benefits but, as in our own times, the creation of a truly international economic network combined greater efficiency with greater fragility. In 1914 a highly optimized system crashed in what was, without doubt, the biggest financial collapse of all time. (Unlike in 1929 or in 2008, the world’s major stock markets were forced to suspend trading for no less than five months.)
Niall Ferguson (The Abyss: World War I and the End of the First Age of Globalization-A Selection from The War of the World (Tracks))
Bear had survived the crash of 1929 without shedding a single employee, but ever since subprime mortgages sank its memorably named Enhanced Leverage Fund in the summer of 2007, markets had viewed it with suspicion bordering on disdain. It was the smallest and most leveraged of the five major investment banks, with $400 billion in assets and $33 in borrowing for every dollar of capital.
Timothy F. Geithner (Stress Test: Reflections on Financial Crises)
The entrepreneurs who stuck with Silicon Valley learned four big lessons from the dot-com crash that still guide business thinking today: 1. Make incremental advances Grand visions inflated the bubble, so they should not be indulged. Anyone who claims to be able to do something great is suspect, and anyone who wants to change the world should be more humble. Small, incremental steps are the only safe path forward. 2. Stay lean and flexible All companies must be “lean,” which is code for “unplanned.” You should not know what your business will do; planning is arrogant and inflexible. Instead you should try things out, “iterate,” and treat entrepreneurship as agnostic experimentation. 3. Improve on the competition Don’t try to create a new market prematurely. The only way to know you have a real business is to start with an already existing customer, so you should build your company by improving on recognizable products already offered by successful competitors. 4. Focus on product, not sales If your product requires advertising or salespeople to sell it, it’s not good enough: technology is primarily about product development, not distribution. Bubble-era advertising was obviously wasteful, so the only sustainable growth is viral growth. These lessons have become dogma in the startup world; those who would ignore them are presumed to invite the justified doom visited upon technology in the great crash of 2000. And yet the opposite principles are probably more correct: 1. It is better to risk boldness than triviality. 2. A bad plan is better than no plan. 3. Competitive markets destroy profits. 4. Sales matters just as much as product.
Peter Thiel (Zero to One: Notes on Start Ups, or How to Build the Future)
from his company. After the stock market crash in 2000, Amazon went through two rounds of layoffs. But Bezos didn’t want to stop recruiting altogether; he just wanted to be more efficient. So he framed the kind
Brad Stone (The Everything Store: Jeff Bezos and the Age of Amazon)
Between economic woes and the untimely crash of the housing market, many Americans today find it harder than ever to afford to invest in a new house, or, in some cases, even to hold onto the one they have. More than that, even if the average American family can afford a home of its own, it will spend most of the income earned over the next two decades to pay for it.
Michael Holtby (The Tiny House Revolution: A Guide to Living Large in Small Spaces)
He focuses then, then, only on the odds for a crash-sharp, catastrophic price drops. After all, it is not small declines that wipe an investor out, it is the crashes. So their scaling formula minimizes the odds of too many of the assets in a portfolio crashing at the same time. They used that to draw a "generalized efficiency frontier"-analogous to Markowitz's original portfolio technique-to help pick a portfolio that maximizes returns for a given amount of crash-protection. As the paper put it, "the frequency of very large, unpleasant losses is minimized for a certain level of return." Thus, it is not just the stock-picking that is important, but also the risk-protection. For the latter, Bouchaud says, multifractal thinking is most useful.
Benoît B. Mandelbrot (The (Mis)Behavior of Markets)
Because the private sector originated subprime loans without any official government backing, many like to blame capitalism, or more specifically Wall Street greed, for the problem. But take the Fed and Fannie and Freddie out of the picture, and subprime would have been a trivial part of the mortgage market.
Peter Schiff (The Real Crash: America's Coming Bankruptcy - How to Save Yourself and Your Country)
growth, while slashing the national debt by more than 30 percent. Throughout most of his tenure, the nation enjoyed unparalleled prosperity, and his public service and numerous philanthropic endeavors made him a beloved national figure. As Time magazine later noted, he was widely considered the “greatest secretary of the treasury since Alexander Hamilton.” And then the stock market crashed in 1929. Mellon resigned from office in 1931, and Hoover lost reelection two years later. After taking office, Franklin Delano Roosevelt drew up a list of enemies and scapegoats. Mellon topped the list. FDR demanded that the IRS audit Mellon’s tax returns.
Jeff Miller (The Bubble Gum Thief (Dagny Gray Book 1))
Collins consolidating power. When it came to news about Collins, there was nothing, as if it never happened that he announced the elections nullified. However, the stock market prices were in a free fall, down at least two thousand points since that morning. The stock market reporter was saying the stock market hadn’t been that bad since the Second Great Depression of 2008 to 2016. If the market were to get even lower, the results could resemble the original Great Depression from one hundred years prior. Gas prices would soar even higher, electric rates would hit the stratosphere, food would get more expensive, and unemployment would definitely hit 1930’s rates of unemployment. However, the reporter wouldn’t blame the stock market crashing on anything,
Cliff Ball (Times of Trouble: an End Times Thriller (The End Times Saga 2))
They’ve also taken thousands of acres from other farmers in other parts of Nebraska, and then givin’ ‘em to the corporate farms months later so they can grown more ethanol, which makes market prices involving corn, skyrocket. I also hear tell of rumors that the government has let the U.N. force people in parts of the Dakotas to stop farmin’ or usin’ land for other purposes, somethin’ about lettin’ the natural world come back to the way it was before the Europeans and Indians came to this part of the world. Now, the stock market looks like it’s gonna crash. What is this world comin’ to?
Cliff Ball (Times of Trouble: an End Times Thriller (The End Times Saga 2))
...Laying blame for the global financial crisis on any single individual, let alone on an eighty-three year old man, seems as ethically flawed as some of the broader moral failures permeating society in the lead-up to the crisis.
Jeremy Balkin (Investing with Impact: Why Finance Is a Force for Good)
The next day the stock market crashed. Hemmingway didn’t quite understand what it all meant, but from the way the white people in town were running around like chickens without heads, she took it as an omen.
Bernice L. McFadden (Gathering of Waters)
During the period surrounding the 1987 stock market collapse endowment portfolios first exhibited aspects of disciplined rebalancing in the run up before the crash and then showed signs of perverse market timing in the carnage of the crash.
David F. Swensen (Pioneering Portfolio Management: An Unconventional Approach to Institutional Investment, Fully Revised and Updated)
Then came the so-called flash crash. At 2:45 on May 6, 2010, for no obvious reason, the market fell six hundred points in a few minutes. A few minutes later, like a drunk trying to pretend he hadn’t just knocked over the fishbowl and killed the pet goldfish, it bounced right back up to where it was before. If you weren’t watching closely you could have missed the entire event—unless, of course, you had placed orders in the market to buy or sell certain stocks. Shares of Accenture traded for a penny, for instance, while shares of Hewlett-Packard traded for more than $100,000. Twenty thousand different trades happened at stock prices more than 60 percent removed from the prices of those stocks just moments before. Five months later, the SEC published a report blaming the entire fiasco on a single large sell order, of stock market futures contracts, mistakenly placed on an exchange in Chicago by an obscure Kansas City mutual fund. That explanation could only be true by accident, because the stock market regulators did not possess the information they needed to understand the stock markets. The unit of trading was now the microsecond, but the exchanges might report their activity in increments as big as a second. There were one million microseconds in a second. It was as if, back in the 1920s, the only stock market data available was a crude aggregation of all trades made during the decade. You could see that at some point in that era there had been a stock market crash. You could see nothing about the events on and around October 29, 1929. The first thing Brad noticed as he read the SEC report on the flash crash was its old-fashioned sense of time. “I did a search of the report for the word ‘minute,’ ” said Brad. “I got eighty-seven hits. I then searched for ‘second’ and got sixty-three hits. I then searched for ‘millisecond’ and got four hits—none of them actually relevant. Finally, I searched for ‘microsecond’ and got zero hits.” He read the report once and then never looked at it again.
Michael Lewis (Flash Boys)
Sure enough, America was shocked by Babson's words: "More people are borrowing and speculating today than ever in our history. Sooner or later a crash is coming which will take in the leading stocks and cause a decline of from 60 to 80 points in the Dow Jones barometer. Wise are those investors who get out of debt and reef their sails.
Kenneth L. Fisher (100 Minds That Made the Market (Fisher Investments Press))
The unprecedented bull market in Treasury bonds, supported by the belief that Treasury bonds are “insurance policies” in the case of financial collapse, could end as badly as the bull market in technology stocks did at the turn of the century. When economic growth increases, Treasury bondholders will receive the double blow of rising interest rates and loss of safe-haven status. One of the prime lessons learned from long-term analysis is that no asset class can stay permanently detached from fundamentals. Stocks had their comeuppance when the technology bubble burst and the financial system crashed. It is quite likely that bondholders will suffer a similar fate as the liquidity created by the world’s central banks turns into stronger economic growth and higher inflation.
Jeremy J. Siegel (Stocks for the Long Run: The Definitive Guide to Financial Market Returns & Long-Term Investment Strategies)