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Manias, Panics, and Crashes (Seventh Edition) cover art

Manias, Panics, and Crashes (Seventh Edition)

By: Robert Z. Aliber, Charles P. Kindleberger
Narrated by: Alister Austin
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Publisher's Summary

Manias, Panics, and Crashes is a scholarly and entertaining account of the way that mismanagement of money and credit has led to financial explosions over the centuries. Covering such topics as the history and anatomy of crises, speculative manias, and the lender of last resort, this book has been hailed as "a true classic...both timely and timeless".

This seventh edition of an investment classic has been thoroughly revised and expanded following the latest crises to hit international markets. Renowned economist Robert Z. Aliber introduces the concept that global financial crises in recent years are not independent events, but symptomatic of an inherent instability in the international system.

©2015 Robert Z. Aliber and Charles P. Kindleberger (P)2021 Upfront Books

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Learned 2 main points in this fever dream

It felt like the same dream repeating but with different examples each time. I am still not sure what the exact chapter delineations were.

The benefit of the deja vu nature of the book was driving home 2 points:
- Our financial crises / issues are not unique. They happen over and over again, with slightly different visuals or quirks on top.
- grift and fraud come during waves of optimism / booms, only to get flushed out when interest rates increase

It highlighted the blurry nature of solvency, and how liquidity crises can become a solvency crisis, and thus the blurry nature of fraud to me, where in the absence of a shock, a company might have scraped through an internal issue fine and come out as never having an issue. Whereas a shock can give them a solvency issue and have it appear as though they were acting fraudulently the whole time. But self fulfilling aspects like this are throughout the economic system considering the economy is built on people's actions and beliefs.

The downside of the vague and repeating nature of the book was that it becomes a bit dreary to get through the further you go.

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Spaghetti

Struggled to follow this , one story jumping to another without proper delineation. Stopped a quarter of the way in...

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