Sunday, October 12, 2008

South Sea Bubble

It won't make you feel better, but here's an interesting view of history
The NYT's Joe Nocera ran a column yesterday on financial bubbles and panics of the past. It's a nice stroll down Memory Lane but for the best history of this sort of nonsense, I recommend MacKay's Extraordinary Popular Delusions and the Madness of Crowds. My father handed it to me when I was about 14 and it changed my view of investing (and investors) permanently. Great read and in print since 1841 so somebody else agrees (but I do wonder whether anyone currently gnawing their fingernails and packing survival kits has actually read it).

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