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A Bubble That Broke the World
What caused the stock-market crash of 1929 and the Great Depression that followed?
This book blows away the conventional interpretations, not only in its contents but that the book exists at all. The Bubble that Broke the World was written in 1931. Author Garet Garrett ascribes the crash to the pileup of debt, which in turn was made possible by the Federal Reserve's printing machine. This created distortions in the production structure that cried out for correction. So what is the answer? Let the correction happen and learn from our mistakes.
Such is the thesis of the great Garet Garrett. But take note: this book was a big seller in 1931. In other words, two years before FDR arrived with his destructive New Deal, ascribing the Depression to capitalism and speculation, Garrett had already explained what was really behind the correction.
We are still fighting an uphill battle to explain the true causes of stock-market crashes and economic recessions, especially the Great Depression. But here in this wonderful book is an actual contemporary account that spelled it out plainly for the world to see.
No more can we say that people back then could not have understood. Garrett told them. And thanks to this new edition of this classic and important work, he is telling us again today.
This book blows away the conventional interpretations, not only in its contents but that the book exists at all. The Bubble that Broke the World was written in 1931. Author Garet Garrett ascribes the crash to the pileup of debt, which in turn was made possible by the Federal Reserve's printing machine. This created distortions in the production structure that cried out for correction. So what is the answer? Let the correction happen and learn from our mistakes.
Such is the thesis of the great Garet Garrett. But take note: this book was a big seller in 1931. In other words, two years before FDR arrived with his destructive New Deal, ascribing the Depression to capitalism and speculation, Garrett had already explained what was really behind the correction.
We are still fighting an uphill battle to explain the true causes of stock-market crashes and economic recessions, especially the Great Depression. But here in this wonderful book is an actual contemporary account that spelled it out plainly for the world to see.
No more can we say that people back then could not have understood. Garrett told them. And thanks to this new edition of this classic and important work, he is telling us again today.
150 pages, Paperback
First published January 1, 1997
66 people are currently reading
290 people want to read
About the author
Garet Garrett
62 books28 followersGaret Garrett was born in 1878 in Illinois. By 1903, he had become a well known writer for the Sun newspaper (1833–1950) in New York. In 1911, he wrote a fairly successful book, Where the Money Grows and Anatomy of the Bubble. In 1916, at the age of 38, Garrett became the executive editor of the New York Tribune, after having worked as a financial writer for The New York Times, the Saturday Evening Post, and The Wall Street Journal. From 1920 to 1933, his primary focus was on writing books.
Between 1920 and 1932 Garrett wrote eight books, including The American Omen in 1928 and A Bubble That Broke the World in 1932. He also wrote regular columns for several business and financial publications.
Between 1920 and 1932 Garrett wrote eight books, including The American Omen in 1928 and A Bubble That Broke the World in 1932. He also wrote regular columns for several business and financial publications.
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Displaying 1 - 12 of 12 reviews
May 30, 2012
Garrett does a great job of explaining the bubbles arising from WW1 and its aftermath, the credit fueled 20's and the forces behind the Great Depression. The whole thing gets bogged down in mind-numbing detail for about the last 1/4 of the book. My suggestion is to read it until it tickles your boredom bone and then stop. The first 2/3 is very informative.
June 8, 2016
If you truly want to understand how banks generate money, how credit is created and what was going on between US and Europe after WW1 to Great Depression, regarding economics, then this book is the best thing you'll ever read.
October 13, 2019
Beautiful coverage of the state of international finance post WW I. America is the only creditor nation emerging out of the great war and is lending more money to its European allies by the year, even post-armistice, so that they can continue paying interest on the war debts. Not a single allied debtor - GB or France is paying down the debt, in fact its the reverse. All along an emotional propaganda against U(ncle) S(hylock) America continues for expecting its allies to honor its war debts and agree to a cancellation. European diplomacy entagled with American capitalism.
July 23, 2020
Bear in mind it was written 70 years ago so the style is a bit dated, but even so, a great way to understand what happened in the 30s depression and what might be coming our way very soon!
April 2, 2009
The book was pretty interesting for the first 100 pages. The book describes the origins of credit and when it is a good and when it is not. The analogy of building 'pyramids' with credit is particularly interesting. The last half of the book talks about debt repudiation and is a pretty tedious read.
Also, the tone of the book puts me off a little. I can't tell if the author is being sarcastic or serious often. Further, the work flows more like a stream of consiciousness than an actual book.
Also, the tone of the book puts me off a little. I can't tell if the author is being sarcastic or serious often. Further, the work flows more like a stream of consiciousness than an actual book.
April 10, 2014
Really nice description of the 'behind the scenes' of what happened during and shortly after the First World War. The point of view as expected is american, but it gives you a good picture of the lending and borrowing, defaults, moratorium, etc that happened that time. (one thing that would make it better though, would be to update the figures to today's dollars, but a better option is to try to familiarize yourself with GDP and trade figures from that time (aprox 1925-1932))
July 5, 2025
Garrett explains how the Treaty of Versailles has led to great instability in the world market in 1932, and perhaps the current economic downturn might become even worse because of it. World War I had left the European nations in great debt, while the U.S. was flush with cash. During the war and afterwards England and France, and later Germany borrowed heavily from America. To pay the massive reparations from the Treaty of Versailles Germany borrowed money from the American government. It used this money to pay England and France. England and France in turn sent that money back to America to pay their war debt. In effect, America was financing the world. This was fine as long as America was willing to give the others credit.
Soon the American government decided that Europe was no longer a good investment and stopped lending them money. The Europeans bypassed the government and borrowed money from Wall Street and millions of small investors who were taken in by the high interest offered. That was fine until a panic caused the Stock Market Crash of 1929 then all the credit dried up, which led us to the unfortunate position we find ourselves in here in 1932.
The saying goes, "If you owe the bank one million dollars, you have a problem. If you owe the bank one billion dollars, the bank has problem." America has a problem. England and France were whining about forgiveness of their war debt starting as soon as the war ended. Worse was Germany. They indicated that if reparations continued soon their government would collapse and be replaced either by communism of a nationalist dictatorship. Whether or not that is true remains to be seen. Perhaps the newly elected government under the National Socialist German Workers Party will be capable of bringing the economic situation under control.
Soon the American government decided that Europe was no longer a good investment and stopped lending them money. The Europeans bypassed the government and borrowed money from Wall Street and millions of small investors who were taken in by the high interest offered. That was fine until a panic caused the Stock Market Crash of 1929 then all the credit dried up, which led us to the unfortunate position we find ourselves in here in 1932.
The saying goes, "If you owe the bank one million dollars, you have a problem. If you owe the bank one billion dollars, the bank has problem." America has a problem. England and France were whining about forgiveness of their war debt starting as soon as the war ended. Worse was Germany. They indicated that if reparations continued soon their government would collapse and be replaced either by communism of a nationalist dictatorship. Whether or not that is true remains to be seen. Perhaps the newly elected government under the National Socialist German Workers Party will be capable of bringing the economic situation under control.
January 5, 2026
Eye opening
A Bubble That Broke the World covers an international debt crisis and its central role in the Great Depression that I’d somehow never encountered before, despite a strong interest in history. Seeing these events unfold through the eyes of a knowledgeable, perceptive observer living through them makes the story unusually vivid and human. Framed this way, the causes of the Depression make far more sense than the conventional explanations I’d absorbed before, which always felt elaborate without being clarifying. The writing can be a bit repetitive at times, but the arguments are clear, well-structured, and delivered with confidence and occasional flair. Highly recommended.
A Bubble That Broke the World covers an international debt crisis and its central role in the Great Depression that I’d somehow never encountered before, despite a strong interest in history. Seeing these events unfold through the eyes of a knowledgeable, perceptive observer living through them makes the story unusually vivid and human. Framed this way, the causes of the Depression make far more sense than the conventional explanations I’d absorbed before, which always felt elaborate without being clarifying. The writing can be a bit repetitive at times, but the arguments are clear, well-structured, and delivered with confidence and occasional flair. Highly recommended.
October 29, 2020
说到一战，往往津津乐道与马恩河会战、凡尔登绞肉机等，其实背后的金融操作也是更是决定性的。那时的美国人完全被英国人牵着鼻子走。
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April 10, 2021VERY INTERESTING ABOUT HISTORY-HOW THE GLOBE DEALS WITH FINANCING --CREDIT, ETC.
July 4, 2016
Very good
Displaying 1 - 12 of 12 reviews