Tags: economy

Depression-Era Trader: America Gone Soft

Tuesday, 07 Oct 2008 11:57 AM

Seth Glickenhaus began working on Wall Street in the summer of 1929, a few months before the October crash that began The Great Depression.

Now, at 94 years old, Glickenhaus is one of only a small group of Wall Street veterans who worked on the Street during that era.

Comparing Wall Street's performance then to what's happening now, he sees the market at or near a bottom. But Glickenhaus says it may be just a pause before another big decline.

Still, there's a big difference between conditions in 1929 and 2008, Glickenhaus told The Wall Street Journal.

In 1929, President Herbert Hoover and Treasury Secretary Andrew Mellon believed that government should not tamper with the market.

Today, the government is trying everything to reverse the meltdown, including passing a $700 billion bailout package and opening a facility to allow the Federal Reserve to buy commercial paper and lend directly to companies.

Glickenhaus, who founded his own money management firm, Glickenhaus & Co., in 1938, and continues to serve as the chief investment officer of the firm, thinks there's still plenty of downside potential in the market.

"We've gotten soft in the United States, politically, economically, and in every way. We've had so much prosperity that we can't compete anymore," he says.

Other Wall Streeters are not as negative as Glickenhaus.

If there are coordinated central bank rate cuts worldwide to keep the global economy moving, "that would be enough to fuel an explosive rally," Brian Rauscher, strategist at Brown Brothers Harriman, told The Wall Street Journal.

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Seth Glickenhaus began working on Wall Street in the summer of 1929, a few months before the October crash that began The Great Depression.Now, at 94 years old, Glickenhaus is one of only a small group ofWall Street veterans who worked on the Street during that...
economy
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2008-57-07
Tuesday, 07 Oct 2008 11:57 AM
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