Learning from the Great Depression

Have past crises taught us anything?

A scholar who has studied the relationship between political and financial fortunes suggests that we take a good, hard look at the aftermath of the Great Depression -- and learn.

November 21, 2008
By Jon Markman

American banking titans Citigroup (C, news, msgs), Goldman Sachs (GS, news, msgs) and Morgan Stanley (MS, news, msgs) are each down 30%-plus this month despite emergency rescue efforts by two branches of the federal government and the infusion of tens of billions of taxpayer dollars.

They are down 75% for the year despite executives' protests that business is fine. They are down despite massive job cuts and asset sales to save costs, and the personal endorsement of everyone's favorite rich uncle, Warren Buffett. They are down even though they have plenty of cash flow and millions of customers, many of whom are the envy of other banks the world over.

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