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To: Mike M2 who wrote (1899)	5/18/1998 4:01:00 PM
From: Joseph G.	Respond to of 86076

Mike, in the '20s there was no SEC, no computers, accounting was much more simple and straightforward, and done by hand. Not many details were disclosed. But, recall that at the peak Dow still paid 3.7% dividend yield (which was real money), 1929 peak price P/E was 19 (most Cos. did not report by quarter then, only for a year). Management never got stock options for free, never mind employees. Some examples, however: - investment trusts (now mutual funds) bot own shares (after IPO), and thus traded at huge premiums (~100%), at which price they sold their shares OTC to the public. - operating Cos. sold stock and invested proceeds in the call market - a pure pyramid scheme. - insiders (managers/directors) often formed "investment pools" to trade on inside info, or just to trade on rumors they spread. - after the peak, many cases of outright fraud were discovered. But the main problem was extrapolation far into the future of the after recession pickup in earnings back to "normal business" levels.