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To: Thomas M. who wrote (85818)	5/4/2001 10:38:10 PM
From: John Pitera	Read Replies (1) \| Respond to of 86076

I think the House of Morgan may be the best of Chernow's books. I read it first in 1990 and have reread it once or twice, it's the kind of book that you can pick up and read a section of again for enjoyment. The story of the corner of the the Great Northwestern in 1901 is fascinating. There were two huge groups vying for control of that key rail-line and as they bid up the price of the shares to gain control, other wall street investors shorted it, and as the price of Northwestern went through 100, and then 200 and on to 300 a share the traders had to sell there other stocks to keep margin on hand for their Northwestern shorts. since the 2 competing pools wanted control at any price, they were not selling but buying the stock on the way up. The other investors created a general market collapse as they had to sell other shares to keep there Northwestern shorts in place. Northwestern ticked all the way up to 1000$ a share before the price broke, but it did huge financial damage to the Wall street community.