Well. that clarifies what the power attributed to sovereign governments by "modern monetary theory" really is, then: they can clean up after impetuous bankers.
I have a copy of his "World in Depression 1929 - 1939" (1973 edit), which is beautifully written in a concise, no-nonsense style. It makes a good companion to the events in the 1948 Congress report on Fascism which attempts to explain its features and how it was achieved in Germany, Italy, Spain, and Japan. The economy sections nicely dovetail with Kindleberger's 1930's history of the period when these countries unleashed themselves prior to WWII.
"At some stage... it becomes clear to a few, and then to more, that... positions are extended beyond some limit sustainable in the long run, and that the maintenance of capital gains depends on getting out of assets rising in price ahead of others.... "
And yet they don't, or they forget the lessons. I recall the 187 Stock Market crash when I was a fund manager. Non of the brokers had a clue over the summer that the market was due to crash. Having said that, Oppenheimer's strategy head was of the same opinion as I that the market was way overvalued, and Elaine Garzarelli got her 15 minutes (and more) of fame when it appeared she had predicted the crash. Did anyone learn? The NASDAQ collapse with the frothiness of internet stock frenzy in 2000 (everyone in Silicon Valley thought they were brilliant traders), and the financial collapse of 2008 seem to have caught most by surprise again and again. Greed seems to drive everyone to pick up that last quarter in front of the steamroller which inevitably runs over everyone. I have no doubt that economic history textbooks are filled with good advice based on the previous financial disasters and yet deregulation to unravel the safeguards keeps happening, and investors keep chasing unicorns until they break their legs.
Well. that clarifies what the power attributed to sovereign governments by "modern monetary theory" really is, then: they can clean up after impetuous bankers.
I have a copy of his "World in Depression 1929 - 1939" (1973 edit), which is beautifully written in a concise, no-nonsense style. It makes a good companion to the events in the 1948 Congress report on Fascism which attempts to explain its features and how it was achieved in Germany, Italy, Spain, and Japan. The economy sections nicely dovetail with Kindleberger's 1930's history of the period when these countries unleashed themselves prior to WWII.
"At some stage... it becomes clear to a few, and then to more, that... positions are extended beyond some limit sustainable in the long run, and that the maintenance of capital gains depends on getting out of assets rising in price ahead of others.... "
And yet they don't, or they forget the lessons. I recall the 187 Stock Market crash when I was a fund manager. Non of the brokers had a clue over the summer that the market was due to crash. Having said that, Oppenheimer's strategy head was of the same opinion as I that the market was way overvalued, and Elaine Garzarelli got her 15 minutes (and more) of fame when it appeared she had predicted the crash. Did anyone learn? The NASDAQ collapse with the frothiness of internet stock frenzy in 2000 (everyone in Silicon Valley thought they were brilliant traders), and the financial collapse of 2008 seem to have caught most by surprise again and again. Greed seems to drive everyone to pick up that last quarter in front of the steamroller which inevitably runs over everyone. I have no doubt that economic history textbooks are filled with good advice based on the previous financial disasters and yet deregulation to unravel the safeguards keeps happening, and investors keep chasing unicorns until they break their legs.