The 1970 Crash
In terms of the analogy between the nineteen twenties and the nineteen sixties with which this chronicle began, the beginning of the year 1970 corresponds roughly to the late spring of 1929. In each case, there were warning signals across the land of a coming economic recession, possibly a full-scale depression, and an uneasy Republican administration, only a year or so in office, was wondering what to do for its best friend and principal political client, the business community. In each case a steep decline in second-rank stock issues—a sort of hidden crash, since it didn’t show up in the popular averages—was already under way. In each case speculation continued to flourish, and money was historically tight; and ...