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Manias, Panics, and Crashes: A History of Financial Crises (Wiley Investment Classics), by Charles P. Kindleberger
PDF Download Manias, Panics, and Crashes: A History of Financial Crises (Wiley Investment Classics), by Charles P. Kindleberger
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From the Back Cover
Finance "Underneath the hilarious anecdotes, the elegant epigrams, and the graceful turns of phrase, Kindleberger is deadly serious. The manner in which human beings earn their livings is no laughing matter to him, especially when they attempt to do so at the expense of one another. As he so effectively demonstrates, manias, panics, and crashes are the consequence of an economic environment that cultivates cupidity, chicanery, and rapaciousness rather than a devout belief in the Golden Rule." from the Foreword to the Fourth Edition by Peter L. Bernstein, author of Against the Gods and The Power of Gold Praise for previous editions of Manias, Panics, and Crashes "Classic...Manias, Panics, and Crashes is a durable guide to meditation: wise, witty, and practical. It is a template against which to measure the latest financial crisiswhatever and whenever that happens to be." David Warsh, The Boston Globe "Definitive." Floyd Norris, The New York Times "[Manias, Panics, and Crashes] is a scholarly account of the way that mismanagement of money and credit has led to financial explosions over the centuries." Richard Lambert, Financial Times "What long has been the best history of financial pathologies is now even better. The reader who absorbs Kindleberger's lessons will be prepared to foresee and navigate the financial crises that surely lie ahead. Like a true classic, Manias, Panics, and Crashes is both timely and timeless." Richard Sylla, Kaufman Professor of Financial History Stern School of Business, New York University
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About the Author
Charles P. Kindleberger was the Ford Professor of Economics at MIT for thirty-three years. He is a financial historian and prolific writer who has published over thirty books. Manias, Panics, and Crashes is his most popular book. ROBERT ALIBER is a Professor of International Economics and Finance at the University of Chicago Graduate School of Business, where he has been a faculty member since 1965.
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Product details
Series: Wiley Investment Classics (Book 39)
Paperback: 355 pages
Publisher: Wiley; 5 edition (October 4, 2005)
Language: English
ISBN-10: 0471467146
ISBN-13: 978-0471467144
Product Dimensions:
5.4 x 1 x 8.4 inches
Shipping Weight: 15.2 ounces
Average Customer Review:
3.8 out of 5 stars
140 customer reviews
Amazon Best Sellers Rank:
#208,218 in Books (See Top 100 in Books)
I bought this three years ago and it has shaped my investing greatly. My goal in investing is always to buy low and sell high. This book helps me understand how to do the first half--buying low. I now buy after crashes.Interestingly, something somewhere is always crashing. And I have also used Kindleberger to size up what are obvious manias (easy one: there are now more construction cranes in Toronto than any other city in North America). Places where I have bought after crashes are Greek shipping companies in January 2013 (42% gain in 12 months even including a stock that went from $70/share to $0.11/share) and Indian small caps in August of 2013 (up ~30% gain in 5 months), the US housing market in 2012, and a small bank whose shares went from $300, to $1, to $11 (counting reverse splits).I have proven that you can still lose money even buying after a big fall (US Treasurys)--so I am not touting Kindleberger as a panacea. it is far from clear how to get the timing right during or after a crash. But this book did a great job illuminating the crazy ways people can cause a good or a stock to part from reality both on its way up and on its way down. Using it, I succeed more often than I fail. And I succeed more often than if I had not read it.I would place this book on the short list, with Taleb's, Lefevre's, and Malkiel's work if you invest for yourself.
This book was informative and gives a detailed history of financial crises going back to the 17th century. I would say that an understanding of the principles of macroeconomics will make this book a more digestible read as it refers to economic frameworks. Seemed a little long-winded at times and the book didn't seem to have the best chapter-to-chapter transitions.I would concur that this is a book that should be referred to every few years. For example, speculative investing & expansion of credit gave way to the Housing Bubble; these topics are covered extensively in the book (albeit written before the pop of the Housing Bubble). It will be interesting to come back to this book as the next couple of economic cycles play out given our nations leverage levels and the implications of expansionary monetary policy (Kindleberger highlighted that Debt/GDP levels should be healthily around <60-70%).
Buy it. Study it. This book will build your frame of reference with regard to economic history, which is of paramount necessity should you be making any investment decisions. When you know history More broadly, as well as specifics of certain circumstances you become less susceptible to BS peddled by so many people today, and always. whether they are good people who only Know enough to spout off a few buzz words, or con men who are trying to swindle you etc. Knowing the information in this book will enable you to think for yourself and remain clear headed when other people are being reactive or tying to convince you of something. You'll be able to simply thank people for their advice, without necessarily being governed by their opinions.
I bough this sixth edition right after it came out and then read a but and then put it back on my shelf for some reason. I though when I bought it would be more a sequential history and not a larger arc looking at crashes and their causes, but I was rewarded coming back to it. I'm just glad that we have the problem of crashes solved after 2008 and there's no worry or possibility of another one (unless crashes are inherent in the economic system, and as explored here even more likely in the current incarnation of capitalism).
This book has some good concepts and discussion, but it is poorly organized, often lacking in logical coherency. The book seems to jump around among various topics and stories, and is hard to follow at times. For example, a heading is often followed by a short discussion of subject matter related to the heading, but then devolves into various tangents. It is almost as if the author wrote the book in a stream of consciousness without much effort in organizing the material being discussed. This is a shame due to the importance of the subject matter being covered. IMO this book could be rewritten to produce a much better product.
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