How did some people get rich during the Great Depression?

[Sharky]

There's a meme that's been around for a long time that some people got very rich as a result of the Great Depression -- as though they were able to do something during that period that wouldn't have been possible otherwise.

Does anyone have concrete examples?

I can see how some might have done well during WW II and the buildup beforehand -- but that's different than the Depression.

[hayekvindicated]

Re: How did some people get rich during the Great Depression?

Jean Paul Getty

[FRED]

Re: How did some people get rich during the Great Depression?

There's a meme that's been around for a long time that some people got very rich as a result of the Great Depression -- as though they were able to do something during that period that wouldn't have been possible otherwise.

Does anyone have concrete examples?

I can see how some might have done well during WW II and the buildup beforehand -- but that's different than the Depression.

A popular approach for the wealthy was to put money into gold because the Hoover administration protected the gold price at $20.67 as real estate prices, for example, fell 80% in an asset and commodities price deflation. Selling gold to buy real estate was common until FDR killed the trade with gold confiscation and re-pricing.

[walenk]

Re: How did some people get rich during the Great Depression?

Joseph P. Kennedy

http://en.wikipedia.org/wiki/Joseph_P_Kennedy

Kennedy's tour of the UK with one of FDR's sons in tow, acquiring liguour distributerships was prescient, as well as classic crony capitalism.

[goadam1]

Re: How did some people get rich during the Great Depression?

they sold a million apples at 10 cents a piece.

[Mega]

Re: How did some people get rich during the Great Depression?

Some great things were done at this time, yes try to think of it as a process of rebrith sort of thing.

BTW
http://www.guardian.co.uk/commentisf...-public-sector
Mike

[Sharky]

Re: How did some people get rich during the Great Depression?

Jean Paul Getty

All that Wikipedia says about Getty's investments during the Great Depression is that he invested "shrewdly." That doesn't tell me much.

Slightly OT, but my great-grandfather's brother was chief attorney at Tidewater Oil and worked directly with Getty for years. From what I've heard, it wasn't a particularly pleasant job.

[walenk]

Re: How did some people get rich during the Great Depression?

Brown & Root, infrastructure.

http://en.wikipedia.org/wiki/Brown_and_Root

Texas, what can I say?

[Sharky]

Re: How did some people get rich during the Great Depression?

Selling gold to buy real estate was common until FDR killed the trade with gold confiscation and re-pricing.

Joseph P. Kennedy

Wikipedia says Kennedy increased his fortune from $4M in 1929 to $180M in 1935 by investing in real estate.

It sounds like one common theme here is buying assets at artificially depressed prices that then enter a boom in the recovery phase. No surprise, I guess.

[walenk]

Re: How did some people get rich during the Great Depression?

Nevada responded to the depression by liberalizing gaming as well as easing the legal requirements for divorce. Reno became synonamous with divorce. Many opportunities were created.
One of the prominent names associated was William Harrah.

http://en.wikipedia.org/wiki/William_Harrah

[hayekvindicated]

Re: How did some people get rich during the Great Depression?

All that Wikipedia says about Getty's investments during the Great Depression is that he invested "shrewdly." That doesn't tell me much.

Slightly OT, but my great-grandfather's brother was chief attorney at Tidewater Oil and worked directly with Getty for years. From what I've heard, it wasn't a particularly pleasant job.

Oil prices crashed at the start of the Depression. Getty bought a lot of oil companies at throwaway prices. When prices recovered, he made a fortune.

[Starving Steve]

Re: How did some people get rich during the Great Depression?

Jean Paul Getty

He had fifty or sixty billion dollars, and he had a pay-phone installed on his estate to make certain that he might rake-in the last dime from his visitors. He especially resented visitors and guests making long distance calls at his expense.

"The meek shall inherit the Earth but not the mineral rights." (Jean Paul Getty)

[walenk]

Re: How did some people get rich during the Great Depression?

Radio matured during the depression.
William S. Paley and CBS hit the big time.

http://en.wikipedia.org/wiki/Bill_Paley

[GRG55]

Re: How did some people get rich during the Great Depression?

A popular approach for the wealthy was to put money into gold because the Hoover administration protected the gold price at $20.67 as real estate prices, for example, fell 80% in an asset and commodities price deflation. Selling gold to buy real estate was common until FDR killed the trade with gold confiscation and re-pricing.

Sounds just what Charles MacKay did [sell housing - buy gold] and perhaps plans to do in reverse eventually?

[Glenn Black]

Re: How did some people get rich during the Great Depression?

My grandparents bought foreclosed houses from the bank extremely cheaply, then put renters in at enough for $0 cash flow or better. Sometimes it was the original owner who just got evicted by bank. They kept their best units until the 1970's, others they sold off earlier as the price was right, often the current tenant.