• 31 Jul 2008 at 4:00 PM

Blame The Longs

Dennis Berman digs up a fascinating excerpt on short-selling from the 1932 hearings on the stock market crash. it’s a shame we don’t seem to have anyone in Congress now even capable of formulating the question asked by New York Congressman Frank Oliver: “They blamed the ‘shorts,’ whereas, as a matter of fact, if the prices were inflated, they should have blamed the ‘longs’ for having inflated them?”

Comments (17)

  1. Posted by guest | July 31, 2008 at 4:28 PM

    Ah, thanks Dennis.
    Can you find some testimony from the Danish kings following the tullip craze. The older the better.

  2. Posted by guest | July 31, 2008 at 4:29 PM

    Ah, thanks Dennis.
    Can you find some testimony from the Danish kings following the tullip craze. The older the better.

  3. Posted by guest | July 31, 2008 at 4:32 PM

    found a similar article, for those of you who are uber-nerds, in JSTOR. it deals with people blaming commodity prices increases in the late 40′s.

  4. Posted by guest | July 31, 2008 at 4:33 PM

    please change your lehman poll.
    thanks.

  5. Posted by guest | July 31, 2008 at 4:37 PM

    why, 4:33? fuld’s fate is still hangs.

  6. Posted by guest | July 31, 2008 at 4:38 PM

    How can politicians pander to the voters and create villains that need to be regulated into submission if politicians are forced to deal with facts?
    If Sarbanes-Oxley taught us anything it was that it is the American way to legislate after the fact so we get all the costs of regulation and none of the benefits.

  7. Posted by blndebnker | July 31, 2008 at 4:49 PM

    @3 – Wow JSTOR. I haven’t heard that since college. Good lord man.

  8. Posted by guest | July 31, 2008 at 5:02 PM

    uh, wasn’t the tulip (one ‘l’) bubble in Holland… which would make them Dutch… not Danish ..

  9. Posted by guest | July 31, 2008 at 5:09 PM

    If you dig more, for you uber-nerds log onto JSTOR, you can find many investigations of commodity price manipulation by speculators dating back to WWI

  10. Posted by guest | July 31, 2008 at 5:30 PM

    @8 Yes. I have a few memos that need a good editor. What’s your hourly rate?

  11. Posted by a dead horse | July 31, 2008 at 5:43 PM

    It’s funny because at the end of the day, it’s the same villains – hedge funds and their ilk. As long as you blame the people trading the securities and not the people who, y’know, fucked up the companies, it doesn’t matter which way you point the blame.

  12. Posted by guest | July 31, 2008 at 5:58 PM

    Then again there was a case of a CEO shorting his own bank. Some thought that fiducially irresponsible.

  13. Posted by guest | July 31, 2008 at 6:27 PM

    hahaha, i heard JSTOR,
    I’m in college and i use JSTOR.
    good stuff.

  14. Posted by guest | July 31, 2008 at 7:36 PM

    There are scapegoats and there are villains. Distinquishing between the two is one of the major inquiries of life.

  15. Posted by guest | July 31, 2008 at 7:50 PM

    Once upon a time, Congress had active committees and subcommittees that weren’t afraid to use their subpoena power, developed evidence, and fully considered an issue before legislating. Both parties participated in the process. Sometimes a national consensus would develop. Sometimes, even, a President would lead the iniative.
    Now we have a few appointed men consider a crisis over a week-end and act unilaterally if they believe they can. At most they present their solution to a cowed Congress and expect the immediate enactment of legislation that will create long-term, far-reaching effects.

  16. Posted by guest | August 1, 2008 at 12:48 AM

    how has no one pointed out that oliver’s statement just might be the smartest thing ever said by a congressman

  17. Posted by guest | August 1, 2008 at 9:14 AM

    15: Which TV docudrama was that then?

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