Thursday, 1 October 2009

This time is different

Just a quickie, but I was trawling the Torygraph's finance section as you do and came across this blog post by the sometimes interesting Edmund Conway. He refers to what sounds like an interesting book on the subject of financial crises:
As a new book, This Time is Different, by the economists Carmen Reinhart and Ken Rogoff, proves in devastating detail, humans have succumbed to financial crises for century after century, ever since the Middle Ages. They are a product of the fact that human life exists in a state of flux between rationality and emotion. This was something John Maynard Keynes understood, but that moderneconomists conveniently forgot.
Sounds like something I would like. And I like the title, which is a reference to the truism that the four most dangerous words in finance are 'this time is different'. So off I go to Amazon to look it up. If you search by that title, there's the book as the top search result, but it also pulls up this corker:
Dow 30,000 by 2008!: Why It's Different This Time
Hehe. I have no idea if the title is meant to be a similar reference, but I think we can say with some certainty that this time it wasn't different, and the prediction contained within the title was a bit off-target.

No comments: