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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A simple, concise talbraith on the euphoria of crowds. Financial innovation is seldom anything else than leverage. There are two groups that participate in the bubble. That seems to be the pattern of financial boom and bust. He argues that financial memory is exceedingly short, rarely lasting more than 20 years.
A Short History of Financial Euphoria by John Kenneth Galbraith | : Books
Anything that goes up must come down – and this has been repeating over again in history. His The Great Crash of is an excellent bit of descriptive writing and this short book is another riff on its themes. Why don’t we ever learn?
July 1, Imprint: The general framework in itself is penned down in two initial chapters and in the concluding ending chapter, in total 30 pages.
In between these chapters the author exemplifies with a chapter each on the Dutch 17th century tulip mania, the almost contemporary British South Sea bubble, the issuance of un-backed regional US fiat money at the time of the American revolution which hjstory the one hand paid the US military forces and won the country its independence but on the other hand lead to a long speculative period, inflation and the inevitable crash and finally the stock market disasters of to and of October The bubble pops once values dip and people are unable to sell their assets.
The common theme in all the financial crashes has been greed and baseless speculation. Short and sweet, witty, humorous, and yet informative.
The first response came from a convocation of former Secretaries of the Treasury, professional public spokesmen, and chief executive officers of major corporations. Galbraith in one sentence describes those people: The New Industrial State. Oh, and thought his discussion of the first two American central banks, galbraaith politics, and the wildcat banks were quite interesting, but everything discussed is generally in passing; it is a short history after all, and basically just a long essay.
His focus on the repeated presence of leverage in these events is interesting and it is a shame that space does not allow for a more systematic analysis. No trivia or quizzes yet. In hindsight, we find out this is merely a pattern of human behavior.
Feb 03, Dina rated it it was amazing. The speculative period is prolonged by the fact that those participating psychologically must justify what has made them rich and has given them a feeling of being successful and intelligent persons. You’ve successfully reported this review. Exceptional The author provides an easy to understand explanation of some of history’s most memorable bubble bursts.
In the most recent boom and bust, that of sub prime mortgages and kennsth derivatives, there were plenty of endogenous factors which cannot be ignored.
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. Lists with This Book.
Dispatched from the UK in 2 business days When will my order arrive? It is a short, witty book with superb, sometimes cynical histtory.
Most recently updated Read and, if not weep, at least sigh at our recidivist follies. First, it runs counter to the presumption that wealth is associated with intelligence. Donald Trump will also seem prescient — inMr. Jul 25, John rated it liked it Shelves: Goodreads is the world’s largest site for readers with over 50 million reviews.
He earned a PhD at the University of California in and later took a fellowship at Cambridge, where he first encountered Keynesian economics. Second, each wave of new financial instruments is billed as unprecedented and novel and therefore exempt from the failings of earlier ones although in fact they are nothing but shoort ideas in new clothes.
Oh, and thought his discussion of the first two American central banks, regional politics, and the wildcat banks were quite interesting, but everything discussed is generally in passing; it is a sh Bit unfair to rational choice theory, but it was a different time perhaps. Whereas you know the conclusions he draws are the correct ones, at the same time its not quite enough to believe him.
Aug 25, Chuck rated it liked it. Ends with a bit shrug of the shoulders. Wonder what this book would have said about the IT bubble And about shorr Great Recession This is a book to go to everytime prices or emotions become a little heady. First, collective memories of financial debacles tend to be very short; therefore, each new generation of financial “wizards” can effectively start over with a blank slate.
John Kenneth Galbraith walks through a few of the better-known financial manias in history.
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During World War II he served as deputy head of the Office of Price Administration, charged with preventing inflation from crippling the war efforts, and also served as the US Ambassador to India during the Kennedy administration. Galbraith identifies several reasons.
Oct 26, Justin Lee rated it really liked it Shelves: A quick and informative if not oversimplified essay highlighting key moments of speculation in financial history and their inevitable reoccurance brought on by short term memory and extreme optimism.
The anatomy of the bubble is often predictable. Book ratings by Goodreads. 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. A short history of financial euphoria can be read in two hours, it galbrairh amusement as well as utility.
A Short History of Financial Euphoria : John Kenneth Galbraith :
A Short History of Financial Euphoria. Joh passes and people forget; this usually does not require more than 20 years A Legacy of Spies. Aug 02, Daniel Clausen rated it it was amazing.