3. Manipulating the stock market was routine before the 1929 crash
Following the war, Kennedy joined the Boston brokerage firm of Hayden, Stone and Company. Stock manipulation, insider trading, and other activities later made illegal were all perfectly legal at the time, and astute brokers learned to recognize the signs when some entity was “playing the market”. Kennedy was in New York at the corner of Broad Street and Wall when a bomb exploded nearby on September 16, 1920. He was thrown to the ground by the force of the blast, but emerged uninjured. Italian anarchists were suspected, but the bombing has never been solved. Kennedy remained with Hayden, Stone until 1923.
While there he learned the methods of manipulating the market, driving down stock prices to purchase at lows, and driving them up to sell high. Journalists were often bribed to provide inaccurate information to the public. Pools were formed through which groups of investors controlled the activity of stock, with members of the pools reaping the profits. Kennedy left Hayden, Stone and Company in 1923, creating his own investment company. The large profits he made allowed him to become a major donor to the Democratic Party, which caught the attention of senior party officials. By then he was ready to invest in the booming film industry.