The 1929 crash made derivatives deeply suspect for decades afterward.

Evidence

Stock options and futures were integral to nineteenth-century exchanges (Weber 2000a,b), but the 1929 crash and the subsequent Great Depression reignited hostility to “speculation” in derivatives that looked like wagers on price movements. Even in the 1960s, market regulators such as the Securities and Exchange Commission (founded in response to the excesses and abuses of the 1920s) remained deeply suspicious of derivatives. — Donald MacKenzie, An Engine, Not a Camera, 635

Categorization

• XREF: The historical hostility toward ‘wagers on price movements’ connects to the reader’s interest in moral barriers to new financial instruments. — connects to: The 1929 crash drove New Dealers to straitjacket bankers with capital controls. — Yanis Varoufakis, Technofeudalism: What Killed Capitalism, 167

Broader Connections

• The 1929 crash drove New Dealers to straitjacket bankers with capital controls. #expands (0.80) — Yanis Varoufakis, Technofeudalism, 167