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Month: March 2014

Hard-boiled conspiracy theories

Hard-boiled conspiracy theories

Whenever I find myself dismissing a conspiracy theory out-of-hand, I try to remember that the President of the United States of America once tried to fight high domestic inflation by scaring the general public about the dangers of cholesterol in eggs.

From page 96 of Robert Samuelson’s The Great Inflation and its Aftermath:

Shoe prices went up, so [President Lyndon B Johnson] slapped export controls on hides to increase the supply of leather. Reports that color television sets would sell at high prices came across the wire. Johnson told me to ask RCA’s David Sarnoff [RCA was then a major TV manufacturer] to hold them down. Domestic lamb prices rose. LBJ directed [Defense Secretary Robert] McNamara to buy cheaper lamb from New Zealand for the troops in Vietnam. The President told CEA [Council of Economic Advisers] and me to move on household appliances, paper cartons, news­ print, men’s underwear, women’s hosiery, glass containers, cel- lulose, [and] air conditioners … When egg prices rose in the spring of 1966 and Agriculture Secretary Orville Freeman told him that not much could be done, Johnson had the Surgeon General issue alerts as to the hazards of cholesterol in eggs.

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Reading list – Where are the customers’ yachts?

Reading list – Where are the customers’ yachts?

In 1940, a former trader named Fred Schwed Jr sat down to write a book about Wall Street.

Mr Schwed had a front row seat for the crash of 1929, the unbridled Wall Street enthusiasm that preceded it, and the depression which followed. What he penned is a thoroughly enjoyable account of finance which continues to resonate, so much so that it was re-released during the bull market of the 1950s, again in 1996, and then again in 2006 – just before the crisis.

The whole thing is well worth a read, but as a fellow financial writer (of sorts) one passage struck me in particular.

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