The 1980's were a strange time to be alive. The period started with the end of Jimmy Carter's term as well as the Iranian hostage crisis. Many say it ended with Ronald Reagan's second term as President. I always think the stark difference between 1981's Escape from New York and Michael Douglas in 1987's Wall Street highlight the change in mood in the country very well.
Probably nothing signifies this period better than Wall Street and no financiers embodied this better than Berkshire-Hathaway's Warren Buffet and Drexel-Burnham's Michael Milken. It should be noted that Buffet has continued with his compounding financial ways to this day to become one of the world's richest and most celebrated investors while Milken was the highest paid investor of his day, peaking at $550 million cash in a year, before being sent to prison.
Many like to point out that Apple's original IPO and Chrysler's government bailout happened at roughly the same time. Apple is well known today as a great stock and one of their largest investors is Berkshire-Hathaway. Chrysler's government bond helped lead the way for an automotive turnaround but what's lesser known is it also symbolizes Reagan and the US government as Milken's biggest rival to the heyday of junk bonds. Chrysler's bond paid off at a 13.99% interest rate which would be comparable to credit card rates most eras. Much of the vaunted government turnaround was financed by this fact.
It was a strange time to be alive. We seem to be living in a similarly strange time today.
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