October 13, 2008

Those Who Cannot Remember the Past are Condemned to What, Again?

“ . . . to repeat it.” — George Santayana, Life of Reason, Reason in Common Sense, Scribner's, 1905, p. 284. (Can you believe that's not in Bartlett's? Seems like hardly anything is, anymore.)



Per the person who posted this, "Richard Whitney, President of the New York Stock Exchange (emphasis supplied), warns of the risks both to country and to capitalism posed by government regulation in the form of the the National Securities Exchange Act. This [was] four full years before he was sent to Sing Sing Prison for embezzlement."

The Securities Exchange Act of 1934 provided in part,

"It shall be unlawful for any person . . . [t]o use or employ, in connection with the purchase or sale of any security . . . or any securities-based swap agreement . . . , any manipulative or deceptive device or contrivance in contravention of such rules and regulations as the Commission may prescribe as necessary or appropriate in the public interest or for the protection of investors."
15 U.S.C. § 78j(b), Sec. 10(b). See also Wikipedia on the Glass-Steagall Act, another law passed in the wake of the crash of '29, esp. the section, "Repeal of the Act."

For historical perspective, see the "Timeline" section at Wikipedia on the '29 crash. However, some commentators think the current situation has more in common with the 1873 crash.

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