Guzzo the Contrarian

As described by the PBS television show, American Experience:

In 1929, while the stock market was rising, seemingly without limits, there were few critics. Based on eight years of continued prosperity, presidents and economists alike confidently predicted that America would soon enter a time when there would be no more poverty, no more depressions — a “New Era” when everyone could be rich. Instead it was the rich who became became richer.

The Crash of 1929 captures the unbounded optimism of the age and the shocking consequences when reality finally hit, exploring a fateful year through the words and experiences of the descendants of several titans of finance. The film features the recollections of people whose families experienced the crash. In one interview, Groucho Marx’s son, Arthur, remembers how his famous father detested gambling, yet put his entire life savings in stocks.

With the markets continuing to reach record lows, I’m sure that there are many Americans worrying that we may be falling into a major Depression (both literally and figuratively). While anything is possible, I believe our economy will rebound from this recession, hopefully with lessons learned. But, on the other hand, like they said in the movie: “We were wonderfully capable of self-delusion”.

So, if you haven’t seen it just yet, this may be an appropriate time to watch the online video, American Experience: The Crash of 1929.

The Crash of 1929 does a great job of explaining the crisis, but from a personal point of view, with interviews from investors and families who experienced the repercussions firsthand. I found it very interesting how many of the issues and behaviors associated with our current economic crisis parallel similar ones that led to The Great Depression.

I found the movie both educational and entertaining.