“Generally speaking, the prudent purchase of land is a better investment for the ordinary man than stocks and bonds, because in the former case he does not pit his judgment against the machinations of a board.” – Richard T. Ely (1920)
“Many of the challenges we face today have been faced by investors of previous generations. Interest rates were on a downward path for almost the entire 19th century. As now, pension fund and insurance company investors responded by shifting from government bonds to less liquid alternatives.”
“It is often said that innovation in financial markets is increasing at an ever-faster pace. I disagree. The real innovators were the merchant bankers in Florence, the statesmen of Genoa, the regulators in Antwerp, the first shareholders and mutual fund managers in Amsterdam, the stockbrokers and investors in London. They revolutionized financial markets; most innovations that have appeared in the 20th and 21st century have just been variations of earlier versions. Even the asset-backed security, which took center stage in the 2007-2008 financial crisis, already existed in the late 18th century.”
“On March 22, Duer met with Livingston and assured him all was well. It was another lie. The following day, Duer was taken to debtors’ prison. The news sent ripples of fear through the small New York investment community. Stock prices collapsed as speculators rushed to become liquid. From his cell, Duer tried to calm his creditors, promising that, if released, he would make a full settlement — in 90 days.”
“Traders have employed every known conveyance to trade faster and cheaper. They were among the earliest adopters of faster boats, faster stagecoaches and private horse expresses. The trading of securities was among the very first uses of the telegraph.”
