Episode 5: The Crash of 1929, When the Music Stopped

In this episode, the speaker delves into the crash of 1929, also known as Black Thursday, and its profound impact on global capitalism. The episode explores the illusion of prosperity during the 1920s, fueled by consumer credit and soaring stock prices, while corporate profits stagnated and debt levels rose. It highlights how margin loans acted as fuel for the bubble, leading to panic and liquidation when prices fell. The roles of central bankers and the imbalances in the global monetary system are examined, setting the stage for the market crash. The episode details the events of October 24th and 29th, the consequences of the crash, including its effects on Germany and the US, and the lessons learned about human nature, greed, and confirmation bias in financial cycles.