The Economist Who Called the Crash
Roger Babson repeatedly warned of an impending stock market collapse throughout the 1920s. He specifically predicted a 60-80 point drop in the Dow Jones during a September 1929 speech. Investors, drunk on easy credit and market euphoria, mocked him as a pessimist. Just one month later, the market crashed exactly as he’d forecast. The Great Depression followed, wiping out 89% of stock values by 1932. Millions lost their homes and savings while banks failed across America.
