The Great Crash 1929

The Great Crash 1929

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  • Create Date:2021-05-28 11:51:13
  • Update Date:2025-09-07
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  • Author:John Kenneth Galbraith
  • ISBN:0241468086
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Summary

John Kenneth Galbraith, one of America's foremost economists, follows the incredible economic rise and fall that lead to the great crash of 1929

No account of the financial insanity of 1929 has been issued in a form at once so readable, so humorous, and so carefully authenticated as this classic book。 J。K。 Galbraith examines the 'gold rush fantasy' in American psychology and describes its dire consequences。 The Florida land boom, the operations of Insull, Kreuger and Hatry, and the fabulous Shenandoah Corporation all come together in this penetrating study of concerted human greed and folly。 From the cold figures of Wall Street the author wrenches a truly human drama。

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Reviews

Vel Veeter

This book explores the 1929 financial crash of the New York Stock Exchange (and other markets) from the viewpoint of both the mid-1950s, and then again from the crash of the markets in 1987。 The book was revised in this latter date to look how new market trends could play out。 Obviously in the last 15 years, we've had new understandings of all this in various way。 Even today, thinking about cryptocurrency and things like Gamespot have shifted the landscape puts a lot of these lessons in jeopardy This book explores the 1929 financial crash of the New York Stock Exchange (and other markets) from the viewpoint of both the mid-1950s, and then again from the crash of the markets in 1987。 The book was revised in this latter date to look how new market trends could play out。 Obviously in the last 15 years, we've had new understandings of all this in various way。 Even today, thinking about cryptocurrency and things like Gamespot have shifted the landscape puts a lot of these lessons in jeopardy。 The book itself is mostly a solid, straight history of the months leading up to the collapse of the stock exchange, a setting straight of misunderstandings, misreading, and myths, and then a clear straightforward reckoning of cause and effect。 Not being a money guy myself, some stray thoughts。 ~~Bad actors and idiots will always try to corrupt a system in order to make money fast, screw things up on purpose, or cheat。 ~~ Some of that is baked into the system。 ~~ Speculation is legalized gambling。 ~~Loopholes are usually on purpose。 ~~It's "hilarious" that one person's right to get rich can cause huge suffering for many others! 。。。more

Broken Bear

Very slow read as the prose was hard to capture, but it was concise and precise, a precious bit of economic literature and everything I wanted in a book about the Crash of 1929。 He devotes one chapter to the depression that followed, but even then his few paragraphs were spot on in his reference to the potential impact of a 'balance sheet shock' that caused GDP to nose dive。 Very slow read as the prose was hard to capture, but it was concise and precise, a precious bit of economic literature and everything I wanted in a book about the Crash of 1929。 He devotes one chapter to the depression that followed, but even then his few paragraphs were spot on in his reference to the potential impact of a 'balance sheet shock' that caused GDP to nose dive。 。。。more

Folkert Wierda

Must read for all crypto-believersIn a fine writing style Galbraith describes and analyzes the crash of 1929。 The similarities with the current crypto-craze are revealing。

Jonathan Waite

I'm happy that today's financial writers are more engaging。 Although page 139's description about the "meeting which is called not to do business but to do no business" is pure gold。 That single page almost made the book for me。 However, it had nothing to do with the crash of 1929。 I'm happy that today's financial writers are more engaging。 Although page 139's description about the "meeting which is called not to do business but to do no business" is pure gold。 That single page almost made the book for me。 However, it had nothing to do with the crash of 1929。 。。。more

Hit No

Must read in 2021

Jason

Authoritative and readable account。 JK Galbraith is a scathingly funny economic historian。

Er。 Alam

One of the best books on the events that led to Great collapse of the stock market。 It gives a good analysis of the reasons and also a clear picture of the timeline of events。 A must read for anyone who wants to learn about how the World was overtaken by greed。

Josh

It is a quick account of the stock market bubble and crash in 1929, although I think it suffers by now。 Its denouement, connecting the crash to the Depression, is too short and under theorized。 The prose shows its age as it expects us to know certain characters and exploits already (esp。 Kreuger)。 Still, it's quick, the points about our country's character and human frailty in this industry and government are all still valid and explain its enduring appeal。 It is a quick account of the stock market bubble and crash in 1929, although I think it suffers by now。 Its denouement, connecting the crash to the Depression, is too short and under theorized。 The prose shows its age as it expects us to know certain characters and exploits already (esp。 Kreuger)。 Still, it's quick, the points about our country's character and human frailty in this industry and government are all still valid and explain its enduring appeal。 。。。more

Chris Esposo

tI didn’t learn as much as I wanted to from this book。 Galbraith was a noted applied economist that cut his teeth in his early career working in one of FDR’s “New Deal” alphabet soup agencies, then later as an economic advisor to JFK during his presidential administration。 His survey of the great depression is not analytic at all, it’s mostly a historical recounting of the day-by-day/week-by-week sequence of events that occurred right before the 1929 crash。 tIf I needed to summarize the picture tI didn’t learn as much as I wanted to from this book。 Galbraith was a noted applied economist that cut his teeth in his early career working in one of FDR’s “New Deal” alphabet soup agencies, then later as an economic advisor to JFK during his presidential administration。 His survey of the great depression is not analytic at all, it’s mostly a historical recounting of the day-by-day/week-by-week sequence of events that occurred right before the 1929 crash。 tIf I needed to summarize the picture Galbraith paints for this time-period, it is of a blissful naivete of the wider population。 The other part of that summary is the constant “desire to get rich” exhibited by “most” Americans。 According to Galbraith, there were several manifestations of this drive including a real-estate boom in Florida, w/ developers selling parcels of land to people who had no idea what they were buying, often with false or misleading advertisements on the properties location, amenities, and the general nature of the land。 tOverall Galbraith describes a business community, government, and general population that apparently could not conceive that they were living in a bubble (which clearly is a hallmark of a bubble, being a large percentage of suckers left holding the bag)。 Though in this case, effectively everyone but an exceedingly small minority were bag holders。 Though not mentioned by Galbraith, the general population at this time was mesmerized by the notion of “boosterism”, a sort of strange philosophy of constantly talking-up something, whether that be your family, company, town, city, nation etc。 This kind of irrational positivity accounts for Galbraiths observation that volume for trades were consistently high during this period of time, meaning that conviction was high among market participants。 A good book to understand Boosterism (at least in a satirical light) is Sinclar Lewis’ “Babbit”。 tFor a modern audience that is looking to “get something practical” about these kinds of tail-events, one thing to pay attention in Galbraith’s description of the day-by-day sequence is to note how non-monotonic the crash really was, and how conviction / sentiment did not all-at-once collapse。 It came in waves, and as Galbraith pointed out there was at least one major reversal where the market gained back almost it’s entire loss from the start of the event, but ultimately, “the longs” ended up eating it in the end。 Though Galbraith was probably not a chartists, these kinds of things can broadly be viewed as chart-patterns, and although I’m not a master of this craft, one reason why depressions/recessions are so challenging to time and play is that no one recessionary event seems to be very identical in trajectory/path to the other。 The latest recession being exemplar to that dictum, having not only been exceedingly sharp, but also exceedingly short (contrary to many expert prognostication)。 tI will be totally honest that much of this book flew over me, because of the distance in time, it was hard to contextualize many of the things Galbraith was talking about in terms of the companies and trends of the days he describes。 What made the contextualization harder is that Galbraith speaks at length about the mentality/policies of both President Coolidge and President Hoover, which I am mostly ignorant of in any true detail, and thus it’s hard for me to adjudicate the veracity of his analysis on their actions (or inactions in the case of Coolidge)。 I will have to read this again with more purposefulness。 My current feeling is that for practitioners, there isn’t much “here” in terms of practical information。 I feel it is more useful than “Reminiscences of a Stock Operator” because Galbraith has a logical time-sequence organization to the information。 The almost total lack of Galbraith in supplying a central theory proposing reasons or governing principles on why people were acting the way they were (other than they were irrational), makes knowledge retention challenging for me。 What may help is reading other books about this event, and then re-reading this book。 I will update this review after doing so。 However, I can only say it is currently a conditional recommendation at this moment。 A good history。 Though, would benefit from charts/visuals/theories/analytic structure etc。 t 。。。more

Herb

Very educational, provides a lot of perspective on this historic economic event。

Luis

Es una excelente crónica de la burbuja especulativa que antecedió al crack de 1929。 De igual forma, expone con gran claridad el entramado institucional al interior de los mercados financieros que alimentó a dicha burbuja y que al colapsar, arrastró a todo el mercado consigo。Todo ello con una pluma espectacular。

Rosemary

I've owned this book forever and thought this is the time to read it。 Good background on banking, and what led to financial regulations。 Made me think why Sen。 Elizabeth Warren keeps saying the Securities and Exchange Commission needs to be reviewed。 Good insights into how American consumerism developed as well as the "get rich quick" psych。This type of history makes us see ourselves more clearly。I also got where ticket tape parades came from。 Did not know ticket tape machines used to be everywh I've owned this book forever and thought this is the time to read it。 Good background on banking, and what led to financial regulations。 Made me think why Sen。 Elizabeth Warren keeps saying the Securities and Exchange Commission needs to be reviewed。 Good insights into how American consumerism developed as well as the "get rich quick" psych。This type of history makes us see ourselves more clearly。I also got where ticket tape parades came from。 Did not know ticket tape machines used to be everywhere。 。。。more

Barış

1929 ekonomik krizini öğrenmek isteyenler için çok sayıda farklı kaynak bulunsa da (Çok sayıda kitaplar, belgeseller, filmler) bir öneri üzerine bu kitabı da aldım ve okudum。 Muhtemelen yazıldığı dönemden olacak (1954) okumayı sürdürmekte çok zorlandım。 Ben, ekonomik krizin dönemin toplumsal ve kültürel hayatına etkilerini de (Özellikle Roaring 20s diye adlandırılan ve borsanın 20ler boyunca yükselmesi sonucu ortaya çıkan şatafat) kitapta beklerken, bunun yeirne çok teknik ve dar alanlara odakla 1929 ekonomik krizini öğrenmek isteyenler için çok sayıda farklı kaynak bulunsa da (Çok sayıda kitaplar, belgeseller, filmler) bir öneri üzerine bu kitabı da aldım ve okudum。 Muhtemelen yazıldığı dönemden olacak (1954) okumayı sürdürmekte çok zorlandım。 Ben, ekonomik krizin dönemin toplumsal ve kültürel hayatına etkilerini de (Özellikle Roaring 20s diye adlandırılan ve borsanın 20ler boyunca yükselmesi sonucu ortaya çıkan şatafat) kitapta beklerken, bunun yeirne çok teknik ve dar alanlara odaklanılmış bir kitap olduğunu gördüm。 Bu haliyle ekonomi alanında yeterince bilgi sahibi olmayan okuyucuların oldukça zorlanacağını düşünüyorum。 Ben tam beklediğimi bulamadım açıkçası。 。。。more

gigi_booksworld

Δεν έχω ιδέα από οικονομικά και χρηματιστήριο, κατάλαβα όμως κάποια πράγματα, ειχε δυστυχώς υπερβολικά πολλά ονόματα και κάπου έχανα το νόημα。 Ήθελα περισσότερο να διαβάσω για τις συνέπειες των ανθρώπων γενικά, όχι μόνο όσοι είχαν μετοχές。

Manish Chablani

This book was recommended by Charlie Munger at one of the BRK annual meeting。 It did not disappoint。

Gleb Posobin

I don't know any economics, but I enjoyed this book a lot (and I think understood most of it) and want to learn macroeconomics now。 The writing is great, I was laughing every couple pages。 I don't know any economics, but I enjoyed this book a lot (and I think understood most of it) and want to learn macroeconomics now。 The writing is great, I was laughing every couple pages。 。。。more

Mark

It is pure pleasure to read Galbraith's prose--by far the most enjoyable I’ve read of any economist, living or dead。 This succinct history of the Crash and summation of factors that contributed to the decade-long depression that followed belongs at the top of any list of accounts and analyses of the event and state of the U。S。 economy in the late 1920s into the early 1930s。 As with other Galbraith essays, I've come away with a slightly expanded vocabulary, even if I may have vague memories of th It is pure pleasure to read Galbraith's prose--by far the most enjoyable I’ve read of any economist, living or dead。 This succinct history of the Crash and summation of factors that contributed to the decade-long depression that followed belongs at the top of any list of accounts and analyses of the event and state of the U。S。 economy in the late 1920s into the early 1930s。 As with other Galbraith essays, I've come away with a slightly expanded vocabulary, even if I may have vague memories of these terms from the GRE, some 20 odd years ago。 Gems from this one include Opprobrious and Perspicacity。 。。。more

Paige McLoughlin

Galbraith is a Keynesian economist writing in the 1950s when they dominated economics departments in the US。 His work on the 1929 crash is more qualitative and conceptual and historical before economists became neoliberal apologists covering their horrible economic ideas with fancy math to look legit (my opinionated take)。 Keynesian were of course also defenders of the order but at least capitalism in the Fordist era had some restraints and cushions from the brutality people in charge then unli Galbraith is a Keynesian economist writing in the 1950s when they dominated economics departments in the US。 His work on the 1929 crash is more qualitative and conceptual and historical before economists became neoliberal apologists covering their horrible economic ideas with fancy math to look legit (my opinionated take)。 Keynesian were of course also defenders of the order but at least capitalism in the Fordist era had some restraints and cushions from the brutality people in charge then unlike under the current overclass。 Anyway, Gailbraith explains rather well the 1929 Wall street crash rather well and in down to earth terms that an ordinary person can understand。 It is a short book but gives a flavor of animal spirits that lead to bubbles and crashes endemic to Wall Street。 。。。more

Robbert Manders

Less about the crash itself and market participants at the time than I hoped it would be。 Half the book was just a boring read。

Valerie

Very interesting economic analysis that is somehow also a laugh riot。

Richard Thompson

When I was in college at Harvard many years ago, Galbraith, who was one of our professors, was a revered elder statesman, famous to most of us a popularizer of economics with books such as The Affluent Society and The New Industrial State。 He was also seen as a bit of a fossil, someone from the old generation who had been superseded by the newer breed of mathematical economists, like Ken Arrow, also then a Harvard professor who had just won the Nobel Prize。 Now a lot of the mathematical stuff se When I was in college at Harvard many years ago, Galbraith, who was one of our professors, was a revered elder statesman, famous to most of us a popularizer of economics with books such as The Affluent Society and The New Industrial State。 He was also seen as a bit of a fossil, someone from the old generation who had been superseded by the newer breed of mathematical economists, like Ken Arrow, also then a Harvard professor who had just won the Nobel Prize。 Now a lot of the mathematical stuff seems like pseudoscience, so maybe it's time to give Galbraith a fresh reading。This book is a pretty standard history of the events and causes of the Great Depression。 There are a lot of details that I didn't know, but not much of the bigger picture stuff that was new to me。 To be fair to Galbraith, that may be because much of his version of this history has become canonical。 There was, of course, a huge speculative bubble, which was made bigger and longer by the then unregulated structure of the American financial system。 There were the huge amounts of securities bought on margin with insufficient collateral to support margin calls in a crash, and there were unregulated banks who aided and abetted the speculation and who didn't have deposit insurance or the assets to back their speculations when nevervous depositors decided that it was time to get their money out。 And of course there was the do nothing Coolidge admnistration that let the speculation go on too long and the do nothing Hoover admnistration that sat idly by as the problems compounded and the country sank deeper and deeper into depression。 Galbraith is optimistic that a risk of repetition of the Great Depression is reduced substantially by the post crash regulations and safety valves that are now built into the system, though I wonder if he would still see those things as being effective today。 And of course there is now general acceptance of massive spending as a way to cushion economic shocks。 But Galbraith also points out that we will always have speculative bubbles and that there is always danger when the bubbles burst。 The edition of this book that I read came on the heels of the 1987 market crash so Galbraith was able to comment on how the lessons of the Great Depression played out in 1987。 I would have loved to see what he would have said about 2008 and about the blows that COVID is currently delivering to the economy。 。。。more

James K Worswick

The Great Crash 1929 was a scary event。 I personally don't know how I would have handled myself if a crash like that happened and lasted for 10 years。 The Great Crash 1929 was a scary event。 I personally don't know how I would have handled myself if a crash like that happened and lasted for 10 years。 。。。more

Daniel

A deeply intelligent book about the stock market crash by one of America’s great economists。 This book conjectures that the propensity of a speculation based culture to accept charlatans was the cause of the Great Depression which followed the market crash。 Galbraith’s observations and prose are informative even in today’s world。 Galbraith — a political liberal — gave kind and gentle rebuke to both sides of the aisle and his humor and sense of irony are in sharp contrast to the polemics of the d A deeply intelligent book about the stock market crash by one of America’s great economists。 This book conjectures that the propensity of a speculation based culture to accept charlatans was the cause of the Great Depression which followed the market crash。 Galbraith’s observations and prose are informative even in today’s world。 Galbraith — a political liberal — gave kind and gentle rebuke to both sides of the aisle and his humor and sense of irony are in sharp contrast to the polemics of the day, even the introduction written by Galbraith’s son, a chaired professor at University of Texas at Austin who offered analysis of the 2007 downturn but failed to acknowledge the failure of the political class as a whole and on both sides of the aisle with regards to the subprime crisis。 。。。more

Helmut Herglotz

The book barely scratches the surface of what happened in the years before 1929, I was hoping to get more insight into mechanisms that led to the catastrophe and data about when - from a retrospective - things started to tilt。To be fair, data from that time might be scarce, so the book feels more like a recount of things than an analysis。This might be a good read for somebody who wants to get an overview of what happened, but will not enlighten people that want to dig a little deeper。

Lampros

Galbraith is a rare combination of a capable economist, historian and narrator。 The "Great Crash of 1929" has been an enjoyable yet concise ride to the chain of events that actually forced US hand to the "New Deal" era。 His book is a must-read introduction to anyone who needs to understand the details and nuances of the Great CrashApart from the historic utility it's biggest asset is actually timelessness。 A causal analysis of the great crash targeted in corporate and banking regulation, the chr Galbraith is a rare combination of a capable economist, historian and narrator。 The "Great Crash of 1929" has been an enjoyable yet concise ride to the chain of events that actually forced US hand to the "New Deal" era。 His book is a must-read introduction to anyone who needs to understand the details and nuances of the Great CrashApart from the historic utility it's biggest asset is actually timelessness。 A causal analysis of the great crash targeted in corporate and banking regulation, the chronic socioeconomic issue of inequality as well as the field of international economics is more relevant than ever today。 Galbraith shows us that debt matters especially in times when neoclassical economists forgot that money and credit have not only quantitive but qualitative and legal aspects。 One should not forget that this crash has been a pivot not only in regulation as well as the economic thinking。 Irving Fisher concept of debt deflation (who has been a well respected and unapologetic proponent has been a prime example of a u-turn in economic analysis。 As the great John Maynard Keynes used to say "When the facts change, I change my mind - what do you do, sir?"Galbraith in his introduction appears dissapointed that as time progressed his book's popularity declined。 Although in the original text Galbraith naively implied that we learned from our mistakes, it seems from the introduction that this view has actually shifted。 And that's where I find the timelessness of his thinking。 As he mentions ever since the Dutch Tulipe mania, all economic shocks have been caused due to the assymetry between the large amount of large and easily made fortunes and the even largest amount of economic illiteracy。 In my personal view, although the "formal" cause of a shock may differ (whether we call it a debt, a structural or an equity shock, this will always be one of the underlining roots of every single shock 。。。more

John Linton

I was a bit disappointed the book was heavy on summarizing events but light on analysis。

Efrén Ayón

A rather enfuriating case of the typical centrist-keynesian quandary of successfully calling out the symptoms but refusing to diagnose the disease。 Here, the author comes up with sufficient data to back up the obvious claim that even in the best case scenario for capitalism, high productivity and improving wages but unequal distribution, the outcome will inevitably be tragic。。。 BUT, there's still no room for discusing alternatives to this broken system, a socialist economy is mentioned but never A rather enfuriating case of the typical centrist-keynesian quandary of successfully calling out the symptoms but refusing to diagnose the disease。 Here, the author comes up with sufficient data to back up the obvious claim that even in the best case scenario for capitalism, high productivity and improving wages but unequal distribution, the outcome will inevitably be tragic。。。 BUT, there's still no room for discusing alternatives to this broken system, a socialist economy is mentioned but never delved into, as if it were silly to even consider it, and the conclusion is that we just have to learn to live in this cyclical agony of everlasting crashes and pray to the god of our chosing that the next one won't be that bad。 Tempted to give this one the lowest score, and might do it in the coming days。 Meh。 。。。more

Mido

في الحقيقة أنا استمتعت بالكتاب برغم معرفتي الاقتصادية المحدودة، الكتاب كان سلس في توضيح بعض النقاط الهامة حول البورصة والمضاربات المفرطة مما ساعد القارىء الغير متمعن على تشكيل صورة واضحة للغاية عن ذلك الزمان وحجم المضاربات الخرافية التي جعلت من سنة 1929 سنة مميزة للغاية في حياة الأمريكيين ، وفي نفس الوقت بداية كارثة استمرت هناك لمدة عقد。 وبالأخص الفقرات التي تحدث فيها الكاتب عن سعى المجتمع في ذلك الوقت لاخرس كل الأصوات المعارضة سواء من خلال السخرية منها أو دفع مبالغ مالية طائلة للجرائد في مقابل في الحقيقة أنا استمتعت بالكتاب برغم معرفتي الاقتصادية المحدودة، الكتاب كان سلس في توضيح بعض النقاط الهامة حول البورصة والمضاربات المفرطة مما ساعد القارىء الغير متمعن على تشكيل صورة واضحة للغاية عن ذلك الزمان وحجم المضاربات الخرافية التي جعلت من سنة 1929 سنة مميزة للغاية في حياة الأمريكيين ، وفي نفس الوقت بداية كارثة استمرت هناك لمدة عقد。 وبالأخص الفقرات التي تحدث فيها الكاتب عن سعى المجتمع في ذلك الوقت لاخرس كل الأصوات المعارضة سواء من خلال السخرية منها أو دفع مبالغ مالية طائلة للجرائد في مقابل نشر أخبار كاذبة عن نجاحات البورصة التي تجعل من الفقير غنيًا في غضون بعض مضاربات ، وهي أمور ماتزال مستمرة بالمناسبة حتى الآن ولكن بفارق أن الأمور اليوم أسوء مما كانت عليه في الثلاثينياتوبالنسبة للمترجم فكانت الترجمة جيدة لكنها شبتها بعض العبوب المزعجة مثل طريقة كتاب الأرقام حيث يكتب المترجم أحيانا سبع وتسع الأصفار وكان من الأفضل أن 。ينسبها إلى الملايين أو المليارات بدلا من كتابتها بهذا الشكل، وأيضا أسماء الشركات كانت غير واضحة بعد كتابتها باللغة العربية مما دفعنى للبحث عنها أكثر من مرة。 。。。more

Sofia

so i read it! v intriguing on how it presents this time of intense scrutiny and change within the investments & stock exchange worldno rating bcos who am i to rate this aha

Manish Sinha

A story of rich and connected people using their money to drive up the stock market using speculation and to some extend manipulation of general consensus。 Very surprising, or not surprising at all was the President's behavior by acting as if the speculative bull market is nothing to worry about。 This book was written after World World 2 and since then there has been a lot of improvements and safeguard built-in to prevent such a thing from happening again。 This has not prevented the 2008 crash c A story of rich and connected people using their money to drive up the stock market using speculation and to some extend manipulation of general consensus。 Very surprising, or not surprising at all was the President's behavior by acting as if the speculative bull market is nothing to worry about。 This book was written after World World 2 and since then there has been a lot of improvements and safeguard built-in to prevent such a thing from happening again。 This has not prevented the 2008 crash caused by the divorce of the stick market from underlying economic strength。 People with money consider themselves invincible and play with the market to make a quick buck。 The sub-prime lending crisis and unnecesary risks taken up by big banks repeated the stock market crash when people realized it was all a house of cards。Its 2020 and when the coronavirus is ravaging Main St, businesses are shuttering in record numbers, unemployment is still very high, the GDP has contracted significantly, the stock market does not reflect any of these bad news。 It's October 2020 and the S&P 500 has gained 7% YTD even after including the historic drop in March。This book provides the cronology of the 1929 crash and how such events will keep happening as once the dust settles and market improves, the same people or the people built in the same mold claim that all the restrictions and regulations put in place to prevent such a collapse should be lifted。 Took away 1 star from this book since the chronology was a bit hard to track。 Some charts and graphs would have been welcome。 。。。more