Part 6/15:
Sorcin highlights the opacity of the era’s financial practices, noting that prospectuses often didn’t exist, and risk underwriting was nonexistent. brokerage firms operated on a “go-go” mentality, with stocks soaring by 48% in 1928 alone. Leverage was rampant, with investors borrowing heavily, banks participating in speculative long positions, and corporations directly funding stock purchases—an environment reminiscent of today’s financial bubbles.