Lessons from the Crash of 1929 for the AI Bubble

Too Big to Fail by Andrew Ross Sorkin provides a minute-by-minute account of the events surrounding the 2007-2008 financial crisis. The book chronicles the collapse of Lehman Brothers and the subsequent efforts by Wall Street and Washington to save the financial system. It is based on hundreds of interviews with top executives and regulators, offering a detailed and dramatic narrative of the crisis, including the motivations of ego, greed, fear, and self-preservation that drove the key players. The book also explores the intricate web of decisions and actions that led to the crisis and the measures taken to mitigate its impact.

In this book, John Kenneth Galbraith traces the history of significant speculative episodes in the economy, from the tulip craze of the seventeenth century to the recent plague of junk bonds. He exposes how normally sane people display reckless behavior in pursuit of profit, attributing these behaviors to a 'notoriously short' financial memory that leads to market collapses. Galbraith emphasizes that recognizing these patterns can help guard against future recessions and improve financial stability. The book underscores the cyclical nature of financial euphoria, driven by mass psychology and leverage, and warns against the illusion that wealth is a measure of intelligence.

This novel by Frederick Turner vividly captures the Jazz Age, weaving a story around Leon 'Bix' Beiderbecke, a jazz legend known for his brilliant yet troubled life. The narrative is framed by the memories of Henry Wise, who reflects on the era's excesses and the tragic figures that defined it. The book features cameos by notable figures like Louis Armstrong and Clara Bow, offering a rich tapestry of the period's music, culture, and societal upheaval.