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Wall Street: A History
Wall Street is the stuff of legend and a source of nightmares, a force so powerful in American society--and, indeed, in world economics and culture--that it has become an almost universal symbol of both the highest aspirations of commercial success and the basest impulses of greed and
deception. How did such a small, concentrated pocket of lower Manhattan came to have such enormous influence in national and world affairs. In this wide-ranging volume, economic historian Charles Geisst answers this question as he provides the first history of Wall Street, ranging from the loose
association of traders meeting on New York sidewalks and coffee houses in the late 18th century, to the modern billion-dollar computer-driven colossus of today.
Here is a fascinating chronicle of America's securities industry and of its role in our nation's economic development. Geisst's narrative ranges over two centuries, from just after the Revolutionary War, to the California Gold Rush and the economic boom (for the North) of the Civil War, to the
great stock market crash of 1929, right up to the recent junk bond frenzy and the merger mania of the 1980s that culminated in the fall of Drexel Burnham. The book traces many themes--the move of industry and business westward in the early 19th century, the rise of the great Robber Barons, the
influence of the securities market on incredible growth of industry, particularly in the innovative financing of the railroads and major steel companies and crucial investments in Bell's and Edison's technical innovations. Geisst also looks at the gradual increase in government involvement in Wall
Street, revealing how regulation had been minimal at first and many investors had suffered from the abuses of corrupt firms. But with the beginning of the New Deal, the government stepped in to pass a series of laws--centered on the Securities Exchange Commission--that severely restricted the ways
that Wall Street firms could operate. Here began a heated debate that still rages today between those who want unfettered license to operate as they please and those who want the government to regulate the market to curb corruption. Of course, "The Street" has always been a breeding ground for
characters with brazen nerve, and no history of the stock market would be complete without a look at the most ruthless wheeler dealers. Geisst for instance details the manipulations by which Jay Gould and associates cornered the gold market, leading to the terrifying market crash on "Black Friday"
in September 1869. Here too are battles of will between powerful personalities and the determined rise to power of such "self made men" as John Jacob Astor, John D. Rockefeller, and Cornelius "Commodore" Vanderbilt--as well as the connivings of lesser known deal makers like William Crapo "Billy"
Durant, reputed to have made $50 million in three months shortly before the stock market crash in 1929.
Wall Street is at once a chronicle of the street itself, from the days when the wall was merely a defensive barricade built by Peter Stuyvesant, and in a broader sense it is an engaging economic history of the United States, a tale of profits and losses, endlessly enterprising spirits, and
the role Wall Street played in helping America become the most powerful economy in the world.
deception. How did such a small, concentrated pocket of lower Manhattan came to have such enormous influence in national and world affairs. In this wide-ranging volume, economic historian Charles Geisst answers this question as he provides the first history of Wall Street, ranging from the loose
association of traders meeting on New York sidewalks and coffee houses in the late 18th century, to the modern billion-dollar computer-driven colossus of today.
Here is a fascinating chronicle of America's securities industry and of its role in our nation's economic development. Geisst's narrative ranges over two centuries, from just after the Revolutionary War, to the California Gold Rush and the economic boom (for the North) of the Civil War, to the
great stock market crash of 1929, right up to the recent junk bond frenzy and the merger mania of the 1980s that culminated in the fall of Drexel Burnham. The book traces many themes--the move of industry and business westward in the early 19th century, the rise of the great Robber Barons, the
influence of the securities market on incredible growth of industry, particularly in the innovative financing of the railroads and major steel companies and crucial investments in Bell's and Edison's technical innovations. Geisst also looks at the gradual increase in government involvement in Wall
Street, revealing how regulation had been minimal at first and many investors had suffered from the abuses of corrupt firms. But with the beginning of the New Deal, the government stepped in to pass a series of laws--centered on the Securities Exchange Commission--that severely restricted the ways
that Wall Street firms could operate. Here began a heated debate that still rages today between those who want unfettered license to operate as they please and those who want the government to regulate the market to curb corruption. Of course, "The Street" has always been a breeding ground for
characters with brazen nerve, and no history of the stock market would be complete without a look at the most ruthless wheeler dealers. Geisst for instance details the manipulations by which Jay Gould and associates cornered the gold market, leading to the terrifying market crash on "Black Friday"
in September 1869. Here too are battles of will between powerful personalities and the determined rise to power of such "self made men" as John Jacob Astor, John D. Rockefeller, and Cornelius "Commodore" Vanderbilt--as well as the connivings of lesser known deal makers like William Crapo "Billy"
Durant, reputed to have made $50 million in three months shortly before the stock market crash in 1929.
Wall Street is at once a chronicle of the street itself, from the days when the wall was merely a defensive barricade built by Peter Stuyvesant, and in a broader sense it is an engaging economic history of the United States, a tale of profits and losses, endlessly enterprising spirits, and
the role Wall Street played in helping America become the most powerful economy in the world.
416 pages, Hardcover
First published September 18, 1997
89 people are currently reading
652 people want to read
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Displaying 1 - 16 of 16 reviews
January 20, 2015
The definitive history of Wall street investment banking. Great stories and details. Starts from the beginning and is very thorough and well-researched. Not a beach read.
December 31, 2008
This book took quite a bit of effort to get through. Although I understand the importance of investing for the future, the actual specifics of stocks, bonds, securities, etc, bore the pants off me. The minutiae of brokering and trading holds no appeal to me, much to the chagrin of my wife.
However, I am a history buff, and I read this book with the hope it would shed some light on a subject I know next to nothing about. I hoped to read of the great characters who made their fortunes on the Street, and in many cases lost them. I was also curious as to how Wall Street got its start, its name, and its practices.
Unfortunately, Charles Geisst, a Professor of Finance in the School of Business at Manhattan College, doesn’t write with much flair or sizzle. Good history books come alive and read almost like a novel. While informative, the book was rather boring and very slow. Add to that Geisst’s use of investment jargon that novices (such as myself) don’t understand, and the result is a ponderous, textbook-like history book.
However, I did found out how Wall Street got its name. The street was originally a thoroughfare that ran beside a wall designed to protect lower Manhattan from unfriendly Indians. The original investors met in the street, outdoors, to trade and bargain.
Geisst traces the history of Wall Street from 1790 through 1996, covering the major players such as William Duer, judge, member of the Continental Congress, and signer of the Articles of Confederation. After making a quick fortune in land speculation, he landed in debtor’s prison, bankrupt. A close friend of Alexander Hamilton, who at one point intervened in his behalf, he was perhaps the first celebrity merchant. Duer, before his fall, moved in the most fashionable and influential circles. He was a portent of the Goulds, Cookes and Morgans yet to come.
Geisst covers the so-called robber barons, Wall Street’s reaction to New Deal regulations, and generally laments the lack of government oversight over Wall Street for much of its history. While he goes into great, mind-numbing detail of the inner machinations and nefarious deals, he neglects to mention how great the country was doing during this time. He leaves the impression that Wall Street is a hidden, exclusive bastion of greed and corruption, untouched by the outside world. He blames Wall Street for the Great Depression and other recessions, but gives it little credit for the unprecedented creation of wealth that has made the U.S. the richest nation in history. Shockingly, he completely ignores the rise of the investor class in recent years, some 50 million Americans who now own their own piece of the Street through 401(k)’s, IRA’s, etc.
Despite the book’s faults, and tediousness, I’m glad I read it. Any Wall Street buff would enjoy it.
However, I am a history buff, and I read this book with the hope it would shed some light on a subject I know next to nothing about. I hoped to read of the great characters who made their fortunes on the Street, and in many cases lost them. I was also curious as to how Wall Street got its start, its name, and its practices.
Unfortunately, Charles Geisst, a Professor of Finance in the School of Business at Manhattan College, doesn’t write with much flair or sizzle. Good history books come alive and read almost like a novel. While informative, the book was rather boring and very slow. Add to that Geisst’s use of investment jargon that novices (such as myself) don’t understand, and the result is a ponderous, textbook-like history book.
However, I did found out how Wall Street got its name. The street was originally a thoroughfare that ran beside a wall designed to protect lower Manhattan from unfriendly Indians. The original investors met in the street, outdoors, to trade and bargain.
Geisst traces the history of Wall Street from 1790 through 1996, covering the major players such as William Duer, judge, member of the Continental Congress, and signer of the Articles of Confederation. After making a quick fortune in land speculation, he landed in debtor’s prison, bankrupt. A close friend of Alexander Hamilton, who at one point intervened in his behalf, he was perhaps the first celebrity merchant. Duer, before his fall, moved in the most fashionable and influential circles. He was a portent of the Goulds, Cookes and Morgans yet to come.
Geisst covers the so-called robber barons, Wall Street’s reaction to New Deal regulations, and generally laments the lack of government oversight over Wall Street for much of its history. While he goes into great, mind-numbing detail of the inner machinations and nefarious deals, he neglects to mention how great the country was doing during this time. He leaves the impression that Wall Street is a hidden, exclusive bastion of greed and corruption, untouched by the outside world. He blames Wall Street for the Great Depression and other recessions, but gives it little credit for the unprecedented creation of wealth that has made the U.S. the richest nation in history. Shockingly, he completely ignores the rise of the investor class in recent years, some 50 million Americans who now own their own piece of the Street through 401(k)’s, IRA’s, etc.
Despite the book’s faults, and tediousness, I’m glad I read it. Any Wall Street buff would enjoy it.
August 13, 2018
Prior to reading this book, my exposure to the history of finance in the U.S. has been limited to the impact of major economic phenomena such as the Roaring 20’s or the Great Depression on American history. This book has been my first exposure to a comprehensive history of finance, focused not on its interplay with the history of the nation but on the progression of historical change within finance. It is quite the narrative, featuring the whole range of human qualities, both good and evil: innovation, greed, fraud, philanthropy, patriotism, hubris, envy, malice, . . .
I found interesting that the amount of misconduct in the finance industry during the 19th century garnered little public censure. Shenanigans on display included:
• Using the press to talk down the price of a stock so it could be bought up at a bargain, enabling the perpetrator(s) to take over a company
• Cornering a market for the purpose of price gouging in the absence of competition
• Using underwriting of government bonds as a profiteering opportunity (in other words, excessive profit at the expense of the issuer and purchasers of the bonds)
In other words, private financiers were manipulating the economy for personal gain, sometimes causing downturns, known as panics. As I read about this, I wondered how the public tolerated this came up with two possible explanations:
• The country still had a frontier at this time, and pioneers would pack up their lives and move off into the unknown, risking their livelihoods and even their own lives in the process. At one level, the world of finance was merely a different type of risk taking in the quest for a better situation in life.
• The harsh living and working conditions of the industrial revolution in the U.S in conjunction with the conspicuous consumption of the industrial class may have contributed to an undercurrent of dissatisfaction with the status quo.
Given that the strong grass-roots criticism of finance didn’t appear to start until the very late 1800’s, I consider both explanations as good candidates. This discussion is beyond the purview of the book but felt it appropriate to bring it up on account of the apparent negative view the author holds regarding this time period based on his tone.
Something else that caught my attention was the similarities between the roaring 20’s and the run-up to the market crash near the end of the George W. Bush administration. I was aware that the stock market crash of 1929 and its aftermath deflated a bubble in stock prices and from other reading had learned that the crash in 2006-2008 deflated a leverage-fueled bubble in mortgage-backed securities. My other reading had also taught me that linkages in the U.S. and global economies, many unrecognized until it was too late, allowed the mortgage bubble deflation to destabilize the entire economy. In like manner, a leverage-fueled bubble in stocks almost destroyed the economy in 1929. Commercial banks often lent depositor money to stock speculators; when stock prices crashed, these high-rolling speculators couldn’t pay back the loans, prompting bank failures that wiped out the savings of people who could ill afford the loss. I cannot fault the public outrage that this provoked.
Among other things, I am a free-market conservative and have often heard the expression “other people’s money” in reference to tax dollars wasted by politicians on boondoggles to gain the favor of voters. In this book, I saw it used in a different context, that of speculators getting their hands on other people’s money so they could use it to speculate (gamble) on the stock market. In fact, Lous Brandeis published Other People's Money And How the Bankers Use It about this behavior in 1914 and republished it in 1933. What lesson did I learn from this? Ultimately, I can trust neither big finance or big government. Both are existential threats to my well-being and freedom. Sometimes they walk in lockstep as a result of influence peddling; sometimes, they are in conflict. When this happens, why can’t they both lose?
Although Professor Geisst is more supportive of government regulation than I am, I have difficulty in faulting him on account of the behavior of financiers over the years. There had been a gradual deregulation of finance starting in the Reagan administration, and Wall Street did not act responsibly with its new freedom. It got reckless and nearly ran the economy into a ditch. Business leaders who should have regulated their own behavior proved incapable of doing so without a kindergarten cop looking over their shoulders. Disgusting! A pox on all their houses.
I found interesting that the amount of misconduct in the finance industry during the 19th century garnered little public censure. Shenanigans on display included:
• Using the press to talk down the price of a stock so it could be bought up at a bargain, enabling the perpetrator(s) to take over a company
• Cornering a market for the purpose of price gouging in the absence of competition
• Using underwriting of government bonds as a profiteering opportunity (in other words, excessive profit at the expense of the issuer and purchasers of the bonds)
In other words, private financiers were manipulating the economy for personal gain, sometimes causing downturns, known as panics. As I read about this, I wondered how the public tolerated this came up with two possible explanations:
• The country still had a frontier at this time, and pioneers would pack up their lives and move off into the unknown, risking their livelihoods and even their own lives in the process. At one level, the world of finance was merely a different type of risk taking in the quest for a better situation in life.
• The harsh living and working conditions of the industrial revolution in the U.S in conjunction with the conspicuous consumption of the industrial class may have contributed to an undercurrent of dissatisfaction with the status quo.
Given that the strong grass-roots criticism of finance didn’t appear to start until the very late 1800’s, I consider both explanations as good candidates. This discussion is beyond the purview of the book but felt it appropriate to bring it up on account of the apparent negative view the author holds regarding this time period based on his tone.
Something else that caught my attention was the similarities between the roaring 20’s and the run-up to the market crash near the end of the George W. Bush administration. I was aware that the stock market crash of 1929 and its aftermath deflated a bubble in stock prices and from other reading had learned that the crash in 2006-2008 deflated a leverage-fueled bubble in mortgage-backed securities. My other reading had also taught me that linkages in the U.S. and global economies, many unrecognized until it was too late, allowed the mortgage bubble deflation to destabilize the entire economy. In like manner, a leverage-fueled bubble in stocks almost destroyed the economy in 1929. Commercial banks often lent depositor money to stock speculators; when stock prices crashed, these high-rolling speculators couldn’t pay back the loans, prompting bank failures that wiped out the savings of people who could ill afford the loss. I cannot fault the public outrage that this provoked.
Among other things, I am a free-market conservative and have often heard the expression “other people’s money” in reference to tax dollars wasted by politicians on boondoggles to gain the favor of voters. In this book, I saw it used in a different context, that of speculators getting their hands on other people’s money so they could use it to speculate (gamble) on the stock market. In fact, Lous Brandeis published Other People's Money And How the Bankers Use It about this behavior in 1914 and republished it in 1933. What lesson did I learn from this? Ultimately, I can trust neither big finance or big government. Both are existential threats to my well-being and freedom. Sometimes they walk in lockstep as a result of influence peddling; sometimes, they are in conflict. When this happens, why can’t they both lose?
Although Professor Geisst is more supportive of government regulation than I am, I have difficulty in faulting him on account of the behavior of financiers over the years. There had been a gradual deregulation of finance starting in the Reagan administration, and Wall Street did not act responsibly with its new freedom. It got reckless and nearly ran the economy into a ditch. Business leaders who should have regulated their own behavior proved incapable of doing so without a kindergarten cop looking over their shoulders. Disgusting! A pox on all their houses.
October 29, 2017
A great overview of how the US became what it is, in terms of finance and economy. A tale of how a handful of men, through connections, and market manipulation on Wall Street came to own the major part of US economy/money/power. How trading jargon came about, when and how certain financial securities were created for the first time. The Great Depression, the bull markets of the last century, the merger mania, the dot com crash. Very educational and helpful read. The most interesting information in this book are all the different ways the big money were made.
July 8, 2017
A great history of the American financial system, from its very early foundations through to the fallout from the 2008 financial crisis. It has fascinating accounts of the robber barons of the 19th century, the 1929 crash and many others. Well worth a read for those interested in financial history.
July 26, 2023
Even though the book is very dry and after a point you really have to concentrate to complete the book, the last chapter is absolutely amazing!
The last chapter of the book talks about the regulations after the global financial crisis in layman language. I have never read anything (books/ articles/ research papers, etc.) which explains the regulations after GFC in simpler words.
The last chapter of the book talks about the regulations after the global financial crisis in layman language. I have never read anything (books/ articles/ research papers, etc.) which explains the regulations after GFC in simpler words.
August 4, 2019
Excellent rundown of the history of Wall Street and the gradual formation of the markets that still exist today. This is a comprehensive historical review that goes into depth of each era of wall steer, up to and including the Great Recession.
January 13, 2024
Dry, but informative. It’s amazing how all the scandals start to look the same and the attempts at regulation fall one step behind the latest frauds.
March 15, 2011
Geisst did an adequate job in conveying the information to the readers. Things started to make sense until he got to the 1930s then he lost me. Things were too complicated and he wrote like it was the tangled web of regulation that is probably was. Unfortunately, I needed clarity not complication. I rate this a "4" because he does a wonderful job leading us from 1791 to 1929, and again from 1947 to 1980. It's pretty good except for the years in between. Worth the read but prepare to study the Great Depression.
July 19, 2014
This books gives a history of finance in this country, listing all the major economic hiccups throughout. Best of all it is written in an easy to read format that is easy to understand. The book felt a little rushed through the period after the Great Depression, however. I imagine as we understand more about the 2007-2008 crisis with hindsight on our side that there will be future additions of this book. I enjoyed reading about the many parallels between the depression error and the 2008-2008 Great Recession.
June 19, 2015
Listened to this as I did a 1K roundtrip drive across Utah. A very accessible history of investing in the US, discussing the cast of colorful characters and banks that influenced our early financial heritage (as well as some of our more recent developments).
Kind of depressing in some respects as I can see parallels in the turmoil of the early years in today's investing climate.
Kind of depressing in some respects as I can see parallels in the turmoil of the early years in today's investing climate.
January 22, 2016
Charles Geisst writes quite at length for this one. Covering 1790-1996 (should've grabbed the revised edition), he walks through many cycles, many topics, and many people. Sometimes a bit dry, but content rich; I'd only recommend this to those who like financial history. The whole time I kept hearing Mark Twain: History doesn't repeat itself, but it does rhyme.
June 24, 2008
It is what it is.
August 19, 2008
This book is very readable, and a good introduction to the stock market and American financial history for the general reader.
May 29, 2015
Comprehensive
January 5, 2019
Hard to cover Wall Street history in one book. Just a few years could take a book, but he does a fair job. There are some obvious errors.
Displaying 1 - 16 of 16 reviews