Trading Perspectives -
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On Conflicting Role Of Analyst
"But the biased researched pumped out by the Wall Street analysts may have been the most significant factor in pushing the markets to their unsustainable highs during the bubble years. Ostensibly, the job of the analysts was to recommend what stocks investors should purchase.
But throughout the 1990s, they gave credibility to the overvalued markets to millions of new investors, who were largely unaware that the analysts had taken on a more conflicted role of recommending stocks and helping their firms win the lucrative investment banking deals from the same companies that helped pay their own outsized salaries."
Charles Gasparino
Book: Blood On The Street
1929 and 1969-70:
Before the crash in 1929, the financial sages had insisted repeatedly that there couldn't be another panic like that of 1907 because of the protective role of the Federal Reserve System; before the crash of 1969-70 a later generation observed repeatedly that there couldn't be a panic like that of 1929 because of the protective role of the Federal Reserve System and the Securities and Exchange Commission. In each case a severe market break had taken place about eight years earlier (in 1921 and 1962 respectively), followed by a period of progressively more unfettered speculation.
John Brooks
The Go-Go Years
May, 28 1962 Blue Monday:
For several weeks in succession, the market slumped ominously, until the week of May 21-25, saw the worst decline in any week for more than ten years. And then, on May 28, the day that has gone down in Wall Street as Blue Monday, the Dow average dropped 34.95 points, a one-day collapse second in history only to that of October 28 1929, when the loss had been 38.33.... Twenty billion dollars in paper values that had existed in the morning had evaporated by evening.
John Brooks
The Go-Go Years
Oct, 19 1987 Black Monday:
Technically, the crash of 1987 bears an uncanny resemblance to the crash of 1929. The shape and extent of the decline and even the day-to-day movements of stock prices track very closely.
George Soros
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