The Crash of 1929 Was Just a Prelude: Truthout Interviews Whistleblower-Novelist Nomi Prins

Thursday 17 November 2011

by: Mark Karlin, Truthout | Interview 

 

Mark Karlin: Given your expertise in understanding the corruption of Wall Street, what did you find in the practices of the financial world leading up to the 1929 crash that presaged the 2007 crisis?

Nomi Prins: Into the crash of 1929, there were six big banks. Their leaders controlled most of the market activity, sat on each others' boards and owned large chunks of stock in each others' firms. They inflated the values of stocks through "trusts" (financial mechanisms by which many investors could "pool" together their money, and borrowed money, to purchase or sell various stocks in bulk).