Arthur A. Robertson Entry 2 Story 1

Arthur A. Robertson made interesting comments regarding the reasons why banks cannot properly run businesses. I agree that it would make sense that those who created companies would understand those companies the best. I believe the most important point that Arthur Robertson made about the problem with banks running businesses was that the banks do not take the calculated risks that are necessary for a business to become successful because the banks are conservative as a result of using the money of other people.

I thought it was very interesting how Arthur A. Robertson in a way benefited from the economic suffering of others during the depression. He bought companies for very low prices from people who at the time desperately needed the money and then over time those companies that he bought for low prices gained value. For example I think it is remarkable that he bought a company for $33,000 in 1933 and then sold the same company for two million dollars.

Arthur A. Robertson had a few quotes that stuck out while he discussed the problems

that caused the depression. Robertson emphasized the faults in consumer investments. This was shown was when Robertson said, ”Today, if you want to buy $100 worth of stock, you have to put up $80 and the broker will put up $20. In those days, you could put up $8 or $10.” By saying this Robertson discussed how at that point in time people almost carelessly took high risks and it eventually led to problems. Robertson also discussed the issue that people continued to invest in companies and stocks without worrying that the prices would drop because, “Everybody in those days expected the sun to shine forever”. By saying this, Arthur A. Robertson brought force the issue that consumer confidence was too high and people did not consider the fact that stock prices would not continue to rise forever. Robertson then talked about the traumatic consequences of the depression. Arthur A. Robertson specifically referenced a man whose, “$115 stock dropped to $2” and how the mans reaction to his losses was he, ”jumped out of the window of his Wall Street office.” The story of a man committing suicide highlights the severity of the depression and emphasized the losses of those who lived in that time period.