This review of John Kenneth Galbraith’s book “A Short History of Financial Euphoria” documents history’s lessons for financial decision makers. A Short History of Financial Euphoria by John Kenneth Galbraith, , available at Book Depository with free delivery worldwide. A Short History of Financial Euphoria. John Kenneth Galbraith, Author Viking Books $16 (p) ISBN
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If we’re looking for the source of the next financial catastrophe, then look no further than — the public endorsement of bullshit artists, partisanship, a growing national debt, frivolous tax cuts, frivolous tariffs, fiscal easing without eknneth, and an abandonment of science.
All financial innovation involves in one form or another, the creation of debt secured in greater or lesser adequacy by real assets. Oh, and thought his discussion of the first two American central banks, regional politics, hisstory the wildcat banks were quite interesting, but everything discussed is generally in passing; it is a short history after hjstory, and basically just a long essay.
His books on economic topics were bestsellers in the s and s. Those who thought that they could exit in time find the emergency exits overcrowded and those who believed in a new world turn into mourners. Ego Is the Enemy.
A Short History of Financial Euphoria by John Kenneth Galbraith
Anything that goes up must come down – and this has been repeating over again in history. You’ve successfully reported this review. Dec 09, Zhou Fang rated it it was amazing. But Galbraith makes some good points.
The references to Mr. My accountant husband urged me to read it after I failed to euphorix another book of Galbraith’s–The Great Crash, I believe it was. The financial markets suddenly became aware.
A Short History of Financial Euphoria : John Kenneth Galbraith :
Looking for beautiful books? Bit unfair to rational choice theory, but it was a different time perhaps. Dec 02, Robert Karl rated it it was amazing. Second, each wave of new financial instruments is billed flnancial unprecedented and novel and therefore exempt from the failings of earlier ones although in fact they are nothing but recycled ideas in new clothes.
A very short page read but definitely some great negative history we must be aware and changes your view of financial markets. The Rise and Fall of D. This book was short and a fast-paced sjort, essential if I’m going to read some non-fiction book about financial matters. Travels in the New Third World.
A Short History of Financial Euphoria
It doubtless won’t prevent the next economic downturn, just as it failed to prevent the last one, but we can’t say that no warnings have been available.
Worth rereading periodically to remind oneself. Galbraith shares his characterization of episodes of speculation, then gives the account of a dozen such episodes, from Holland’s tulip mania to the crash of October A wonderful quick read that can be finished in one sitting. First, it runs counter to the presumption that wealth is associated with intelligence. The meaning of leverage can be truly understood on reading this book. More regulation is not necessarily the solution. Lincoln in the Bardo.
The book was written in the early 90s at a time when the junk bond bubble had collapsed. On the one hand those who are believers and are convinced that a new world of immediate wealth has been born, on the other hand those who think that the price rises are unsustainable but intend to ride the wave and exit when the crash approaches. Feb 27, Ngee Poo rated it it was amazing.
Only short-coming is that it’s very short on the prescriptive.
Are the causes of economic events such as assets bubbles and busts endogenous – originating within the economic system, such as central bank action or new innovations – or exogenous – originating outside it, such as natural disasters?
Second, the market is supposed to be always right. He starts around the time of “Tulipomania” in the s and goes right up through the 20th centu This book was referenced several times in “Juggling Dynamite” so I thought I’d check it out. The only thing that helps is the understanding of the mass hysteria that creates them. Jan 04, Francisco rated it really liked it Shelves: He was also awarded the Order of Canada inand inthe Padma Vibhushan, India’s second highest civilian award, for strengthening ties between India and the USA.
Hope is an unbacked asset, and people get silly. I flew through this book and it was a big eye-opener. Would you like us to take another look at this review?
His insights provide important lessons on speculative economics, and demonstrate conclusively that money and intelligence are not necessarily linked.
Something that must always be on the mind of the enterprising investor if he wishes to succeed. Visit our Beautiful Books page and find lovely books for kids, photography lovers and more. The anatomy of the bubble is often predictable.
Although he died before the last crash, all of his arguments and descriptions would have applied fully. In this slender volume, John Kenneth Galbraith selectively traces episodes of speculative excess from the Tulipomania of the midth century through the Crash of ‘ Aug 09, Robert Rigoni added it. A welcome reminder of brevity of financial memory and mass folly in finance. Why don’t we ever learn?