"... Very soon a business much more attractive than theater attracted my attention and the country. It was a little matter called the stock market. I first met him around 1926. Was a very pleasant surprise to discover that it was a very shrewd businessman. Or so it seemed, because everything he bought value increased. He had no financial adviser Who needed him? You could close your eyes, rest your finger anywhere on the huge wall board and the action that had just bought immediately began to rise. I never got benefits. It seemed absurd to sell a stock to thirty when he knew that within a year would double or triple its value.
My weekly salary was about two thousand, but this was small change compared pasta with winning theory on Wall Street. He enjoyed working in the magazine but the pay no interest to me. Accepted worldwide confidence on the stock market. Now hard to believe but incidents like the following were common in those days.
I went to a hotel elevator at the Copley Plaza in Boston. The elevator man recognized me and said, - have risen a little while ago two individuals, Mr. Marx, you know? Big fish, really. American cross-dressed and wore carnations in their lapels. They spoke of the stock market, and believe me, friend, had the appearance of knowing what they said. Not have imagined that I was listening, but when I drive the elevator I have always listening. I will not spend all my life driving up and down one of these boxes! Anyway, I heard that one of the individuals said to another: "Put all the money you can get in United Corporation" [...]
I gave five dollars and ran into the room of Harpo. He immediately informed about this potential gold mine that I had stumbled into the elevator. Harpo had breakfast and was still in his dressing gown. "In the lobby of this hotel are the offices of a stockbroker," he said. Wait for me to dress and run to get these shares before the news spread. "Harpo" I said, are you crazy? If you wait until you are clothed, these actions can raise ten integers! So with my street clothes and Harpo with his robe, ran down the hall, entered the office of agent and in a trice United Corporation bought shares worth a hundred and sixty thousand dollars, with a guarantee of five percent. For the lucky few that are not ruined in 1929 and who are not familiar with Wall Street, let me explain what that interest of twenty-five percent. For example, if you bought eighty thousand dollars of stock, only had to pay in cash twenty thousand. The rest was left to be due to the agent. It was like stealing money.
On Wednesday afternoon, at Broadway, Chico found a regular Wall Street, who said in a whisper: "Boy, now come from Wall Street and there is talk of nothing but the Anaconda Copper. Sold a hundred and thirty eight dollars the action and is rumored to come to the hundred. Buy them before it's too late! I know of very good ink. He ran immediately to the theater, with the news of this opportunity. Was a function of thirty minutes late and were delayed the rise of the curtain until our agent assured us we had been fortunate to get six hundred shares. We were excited! Chico, Harpo and I were each owners of two hundred shares of these values oozed gold. The agent even congratulated us. He said: - It is not often that someone from such a good start with a company like Anaconda.
The market went up and up. When we were touring, Max Gordon, the theatrical producer, used to put a conference call every morning from New York, only to inform the market rate and their predictions for the day. These predictions never varied. It was always "up, up, up." Until then I had not imagined that one could get rich without working. Max called me one morning and advised me to buy some securities called Auburn. Were from a company car now nonexistent. "Marx said," is a great opportunity. Stick more hops a kangaroo. Buy now before it's too late. Then he added: - Why not leave the theater and forget the miserable two thousand weekly win? Are small change. As you manage your finances, ensure that you can earn more money in an hour, installed in the office of a securities dealer, that you can get doing eight performances a week on Broadway. -Max "I said, there is no doubt that your advice is great. But after all I have certain obligations Kaufman, Ryskind, Irving Berlin and with my producer Sam Harris. Those who did not know then was that Kaufman, Ruskind, Berlin and Harris also bought on credit and, ultimately, would be wiped out by financial advisors. However, on the advice of Max, I immediately called my agent and instructed him to buy me five hundred shares of the Auburn Motor Company.
few weeks later, I was walking around the grounds of a country club, with Mr Gordon [...] The day before, had beaten Auburn jumped thirty-eight integers. I turned to my golfing buddy and said, "Max, how long will this last? Max said, using a phrase from Al Jolson. "Brother, you is not seen nothing yet! Most surprising
market in 1929 was that nobody was selling a single action. People bought incessantly. One day, a little timidly, I spoke to my agent about this phenomenon speculative. - I do not know much about Wall Street - began to say they are apologetic but what makes these actions continue to climb? Should not there be a connection between a company's earnings, dividends and the selling price for their actions? Above my head, looked at another victim who had just entered his office and said: - Mr Marx has much to learn about the stock market. What you do not know about the actions serve to fill a book. - Hey, good man, "I replied. I came here looking for advice. If you do not know you speak with courtesy, others will be happy to take care of my business. Now what were you saying? Adequately punished and tamed, replied: - Mr Marx, you may not realize it, but this has ceased to be a national market. Now we are a global market. We received orders from all countries of Europe, South America and even East. This morning we received an order from India to buy a thousand shares of Crane Plumbing. With some weariness asked: - Do you think that is a good buy? "There is no better," he replied. If there is something we all are using the pipes. (It took me a few other things more, but I was not sure on the lists of contributions.)-This is ridiculous, "I said. I have several friends Reds in South Dakota and do not use pipes. "I laughed to celebrate my departure, but he remained very serious, so I went on. Are you saying that since India has sent orders for Crane Plumbing? If requested in faraway India pipeline, should know something sensational. Apúnteme for two hundred shares, no, better yet, who are three hundred
As the market continued to rise into the sky, I began to feel increasingly nervous. The little sense you had told me to sell, but, like all the other cousins, was greedy. Sorry to part with any action, he was sure it would double its value within months.
read in the newspapers frequently present articles concerning viewers who complain that they have paid up to a hundred dollars for two tickets to see My Fair Lady (1) (Personally I think it's worth those dollars.) Well, once paid thirty eight thousand to see Eddie Cantor in the Palace [...] Cantor was my neighbor in Great Neek. As longtime friend when he finished the performance was to see him in his dressing room. [...] House-Cantor continued, "what do you think my show? I looked back, assuming that would have gone some girl. Unfortunately it was not, and I realized that was addressed to me. Eddie, darling - I said with genuine enthusiasm, "has been superb! I was about to throw a few more compliments when I looked lovingly with those big, bright eyes, his hands on my shoulders and said, "Nice, you got some Goldman Sachs? "Sweetness" I said (this game can play two) - not only did I have any, but I've never heard of them What is Goldman Sachs? A brand of flour? He grabbed me by both lapels and pulled me to me. For a moment I thought I was going to kiss me. - Do not tell me you've never heard talk of Goldman Sachs! He cried incredulously. Investment company is the most sensational of all the stock market. Then looked at his watch and said, "Today is too late. The stock market is now closed. But tomorrow morning, baby, the first thing you do is take your hat and run the office of your agent to buy two hundred shares of Goldman Sachs. I think today closed at 156 ... and 156 is a steal! Eddie then I slapped one cheek, I patted him and we parted. Amigo! How happy I was to have gone to Cantor to his dressing room! Imagine, if you do not get to go that evening at the Palace Theatre, had not had that confidence. In Next morning, before breakfast, I ran to the office of the agent at the time that opened the bag. I slowed to twenty five percent of thirty-eight thousand dollars and I became the lucky owner of two hundred shares of Goldman Sachs, the best American investment company
Then I began to spend the morning installed in the office of a stockbroker, watching a large wall chart full of signs that do not understand. Unless you arrive early, even I could enter. Many stock agencies had more public than most Broadway theaters. It seemed that almost everyone I know would be interested in the stock market. Most of the conversations were limited to the amount that such and such value had risen last week, or the like. The plumber, the butcher, the baker, the ice man, all eager to get rich, they threw their mean wages and in many cases their life savings "on Wall Street. Occasionally, the market faltered, but soon released the resistance offered by the prudent and sensible, and continued his continued ascent.
Occasionally a financial prophet gloomy published an article warning the public that the price bore no proportion to the real values \u200b\u200band remembering that what goes up must come down. But hardly anyone Conservatives pay attention to these fools and idiots words of caution. Even Barney Baruch, the Socrates of Central Park and the American financial wizard, launched a wakeup call. I do not remember his exact phrase, but came to be: "When the stock market becomes front page news, the time has come to retire."
I was not present when the gold rush of forty-nine. I refer to 1849. But I guess that this fever was very similar to that now infects the entire country. President Hoover was fishing and the rest of the federal government seemed completely oblivious to what was happening. I'm not sure they had achieved something even if they had tried but in any case the market slid merrily to their doom.
a particular day, the market began to falter. A few of the most nervous clients panicked and started downloading. That was almost thirty years and I remember the various phases of the disaster that fell upon us, but as the beginning of the boom everyone wanted to buy, when you start to panic everyone wanted to sell. Initially sales were orderly, but soon the panic began to set aside the good sense and everyone started to throw the ring values \u200b\u200bthat were then only such name. Then the panic hit the stockbrokers, who began to scream demanding additional guarantees. This was a joke, because most shareholders had run out of money, and agents began to sell shares at any price. I was one of those affected. Unfortunately, I still had money in the bank. To avoid selling my role feverishly began to write checks to cover the guarantees that disappeared quickly.
Then a spectacular Tuesday, Wall Street threw in the towel and simply collapsed. That on the towel is an appropriate phrase, because by then the whole country was crying. Some of my acquaintances lost millions. I had more luck. The only thing I lost was two hundred forty thousand dollars (or one hundred twenty weeks of work, a few thousand per week). Had lost more but it was all the money he had. The day of final collapse, my friend, financial advisor and shrewd old merchant, Max Gordon, phoned me from New York. [...] All he said was "the joke is over!" Before I could answer the phone was speechless ... he committed suicide.
Throughout the crap written by market analysts, it seems that no one gave a summary of the situation as succinct a manner as my friend Mr. Gordon. In those words said it all. Since then, the joke was over. I think the only reason I went living was the consoling belief that all my friends were in the same situation. Even the financial misery, like that of any other species, prefers the company. If my agent had begun to sell my shares when they began to crumble, would have saved a fortune. But since I could not imagine that they could go lower, I started to borrow money to cover bank guarantees. Anaconda Copper shares were melted like the snows of Kilimanjaro (do not think I have not read Hemingway), and finally stabilized at 2 7 / 8. The confidence of the elevator over Boston United Corporation was settled at 3.50. We'd bought 60. Function Cantor at the Palace was magnificent "Goldman-Sachs to $ 156? When maximum depressed market, they could buy one dollar per share.
financial Going eviction was not a total loss. In exchange for two hundred and forty thousand U.S. dollars my insomnia got rampant, and in my social circle began to replace the disclosure to the stock market as the main topic of conversation ... "
