WEDC's Brilliance Book Club
Devil Take the Hindmost: A History of Financial Speculation by Edward Chancellor
Below is a review by another author, Craig Howe:
A wizened wag at an investment firm once warned me to start looking for the sell tickets as soon as I heard the words "This Time is Different."
In my short experience as an investor, it was some of the most sage advice I have received. Edward Chancellor book arrives at the same conclusion but provides more foundation to recognize the bubbles of speculation.
Investment bubbles never change. Yet, for the investor or trader caught up in one, they remain difficult to identify. According to modern economic theory, markets are efficient and speculators are rational opportunists intent on maximizing their wealth.
Chancellor, a former investment banker and historian, disagrees. More than fear and greed drives speculators, they motivated by deeper compulsions and aspirations. Speculation, he says, can only be understood within a social context and that its history cannot be a simple description of economic affairs. It is important to understand the behavior and attitudes of politicians, since the laws governing markets are written and enforced by governments.
He traces the origins of speculative fever back to ancient Rome and follows the thread through Holland's tulip mania in the 1630s and London's stockjobbers 70 years later.
The book ends with an insightful analysis of the Junk Bond era here in the United States, the Japanese bubble and the near collapse of Long Term Capital Management. It is a must read for every serious investor.We will meet at Nancy Colin's home at 5:30 pm on May 21, 2013.
2702 Trailway Road, Huntsville, AL 35801
Nancy's phone: 256-426-3948 Email: firstname.lastname@example.org
Beverages will be provided, bring a snack to share!
We plan to meet quarterly.
The event is free but please RSVP so Nancy Colin will know how many to expect. Be sure to click on the box "Include name in list of event attendees" on the second page so we will know who you are!
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