Lords Of Finance: 1929, The Great Depression, And The Bankers Who Broke The World gives a vivid and dramatic account of how the actions of four powerful bankers led to the collapse of the world’s economy.
Summary Of The Book
The Wall Street Crash of 1929 and The Great Depression of 1930 are two events which brought down the world economy, and sealed the future of the coming generation. It is believed that this economic crisis was not in anybody’s control and that no person or government could control it. But in Lords Of Finance: 1929, The Great Depression, And The Bankers Who Broke The World, Liaquat Ahamed tells us how the actions and decisions of the men controlling some of the biggest central banks led to this crisis.
The author tells us the story of these four men who ‘broke the world’ and brought down economies. They were the enigmatic and neurotic Montagu Norman of the Bank Of England, the brilliant and arrogant Hjalmar Schacht of Reichsbank, the overburdened Benjamin Strong of the Federal Bank Of New York, and Emile Moreau of the Banque de France.
These four men tried to reconstruct and rebuild the world after the horrors of the first World War. Despite their differences and even the dislike for each other, the four held a common belief. According to them, the solution of the economic crisis was to go back to the gold standard. For a brief period, it seemed as if these amazingly brilliant men had managed to stabilize the world’s economy. But soon enough, the drawbacks of their plan became evident.
Ahamed gives us the histories of these bankers and how their insistence on going back to the gold standards led to the biggest economic crisis the world has ever faced. The author points out how the economic meltdown could have been prevented, but for the wrong decisions of the most intelligent banking minds of the time. He also takes a look at the role of their constant and biggest critic, British economist, John Maynard Keynes.
Ahamed’s book released in 2009, when the world was facing another major economic crisis. Coming at a time like this, it was a much needed reminder of how human folly could bring down the entire world. Lords Of Finance: 1929, The Great Depression, And The Bankers Who Broke The World won the 2009 Financial Times and Goldman Sachs Business Book Of The Year Award. It also won the Pulitzer Prize for History and the Spear’s Book Award in 2010. Ahamed’s much acclaimed book was also on the New York Times Bestseller list and the Time magazine’s Best Book of the year list.
About Liaquat Ahamed
Born in Kenya, Liaquat Ahamed has been an investment manager for 25 years.
He has also written Economic Adjustment and Exchange Rates in Developing Countries.
Ahamed has degrees from from Cambridge University and Harvard University. Ahamed has worked for World Bank. He is currently on the Brookings Institution’s Board of Trustees and is also an adviser to various hedge fund groups like Rohatyn Group and Creek Group.
Good summary of The Great Depressesion
A cautionary tale of central bankers going wrong
Certified Buyer, Bangalore
Certified Buyer, Bharuch
A great book.
Certified Buyer, Kolkata