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Historical Thought for the Day

February 3, 2010

Thought for the day:  

The smart money isn't so smart, and the dumb money isn't really as dumb as it thinks. Dumb money is only dumb when it listens to the smart money.

–Peter Lynch, One up on Wall Street

This day in financial history: 

1913: Can you hear your wallet screaming? Today is the birthday of the Federal income tax, as the states ratify the 16th Amendment to the U.S. Constitution. It reads in its entirety: "The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration." The 16th Amendment overturns Article I, Section 9 of the Constitution, which had expressly forbidden a general income tax.

1964: A direct feed to the stock ticker at the New York Stock Exchange is extended overseas for the first time, as Switzerland gets a real-time link to follow share prices in New York.

Source: Jason Zweig