One of the greatest investors of all time, Stanley Druckenmiller, has a cautionary tale for all of us; Charles P. Kindleberger
Skeptical about tech stocks during the bubble a quarter century ago, he bet against them too early.
Druckenmiller said he knew he wasn’t supposed to play and did anyway.
Years before that, economist and bubble scholar Charles Kindleberger laid out the psychology that lured him in.
"There is nothing so disturbing to one's well-being and judgment as to see a friend get rich."
Charles P Kindleberger drew the spiral for The World In Depression, first published in 1973, his monumental study of the 1930s
The bust in stock markets was transmitted to commodities and trade through a collapse in credit and waves of bank failures as people everywhere rushed to get hold of gold, dollars and British pounds, the reserve currency before the Great War.
What turned all this into a full-blown global depression was the collapse of a small bank in Vienna in 1931 Creditanstalt, the 1931 equivalent of Lehman Brothers.
A handful of years later, Hitler was welcomed by cheering crowds in Vienna.
https://englundmacro.blogspot.com/2025/02/who-will-now-stabilise-world-economy.html
Charles P. Kindleberger wrote the 1978 economics classic "Manias, Panics, and Crashes: A History of Financial Crises."
The book, required reading for many Wall Street trainees and students of economic history, documents four centuries of boom-and-bust financial cycles.
It ranges from a fleeting bubble in the market for Dutch tulips in 1636, to rampant speculation and subsequent collapses in railroad shares in 1847 and 1857, to the Depression in the 1930s, to the rise and fall of Japan's property market in the late 1980s and early 1990s.
https://www.wsj.com/articles/SB1027558178787460080
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