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Money Mania: Booms, Panics, and Busts from Ancient Rome to the Great Meltdown
Money Mania is a sweeping account of financial speculation and its consequences, from ancient Rome to the Meltdown of 2008. Acclaimed journalist and investor Bob Swarup tracks the history of speculative fevers caused by the appearance of new profitable investment opportunities; the new assets created and the increasing self-congratulatory euphoria that drives them to unsustainable highs, all fed by an illusion of insight and newly minted experts; the unexpected catalysts that eventually lead to panic; the inevitable crash as investors scramble to withdraw their funds from the original market and any other that might resemble it; and finally, the brevity of financial memory that allows us to repeat the cycle without ever critically evaluating the drivers of this endless cycle.
In short, it is the story of what makes us human.
In short, it is the story of what makes us human.
320 pages, Hardcover
First published August 27, 2013
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Displaying 1 - 16 of 16 reviews
July 3, 2017
This was a very good book. It analyzed the psychology of crowds, herd behavior, and mental fallacies, then applied those to about a dozen specific examples of market "bubbles" throughout history. Time after time the madness of herd behavior showed up, from the Roman empire all through to modern times. After seeing it play out so often, the commonalities really start to appear. This is perfectly expected, since human biology and cognition doesn't change, even though the setting does. It was fun to watch human psychological errors cause carnage, time and time again.
I do have complaints. First, the psychological principles that cause bubbles aren't discussed until late in the book. The author also tends to jump around between theory and example in a random fashion. He also includes some personal anecdotes that are more confusing than helpful. Finally, while the history of Germany's economy was interesting, most of it fell outside the scope of this book. If Money Mania was cut up and reordered, along with the deletion of about 20 pages of material, it would be a masterpiece. As it stands, however, it is merely "really good".
I do have complaints. First, the psychological principles that cause bubbles aren't discussed until late in the book. The author also tends to jump around between theory and example in a random fashion. He also includes some personal anecdotes that are more confusing than helpful. Finally, while the history of Germany's economy was interesting, most of it fell outside the scope of this book. If Money Mania was cut up and reordered, along with the deletion of about 20 pages of material, it would be a masterpiece. As it stands, however, it is merely "really good".
March 30, 2014
I won this book from Goodreads.
It is an excellent resource for anyone taking an economics class (I wish I had a copy when I was taking Macroeconomics). Mr. Swarup does an excellent job discussing the history of economics and events that transpired therein. The quotes he chose to include are an excellent addition to the book, as are the graphics included between pages 168 and 169. The internet map was quite interesting. The author's writing style is interesting (never boring) and informative. He doesn't litter the book with a bunch of jargon that only business majors can understand, so this book would be an excellent reference source for anyone interested in economic history (and it's an entertaining read if someone just has an interest on the topic). The book would also be useful for those studying or interested in history as financial situations often influence relations with other nations, people, etc. There is a lot of useful advise and points to consider presented in the final chapter of the book, "The Land of the Blind" as well. I agree that the role of credit in an economy needs to be reassessed as a lot of financial crises have been rooted therein. Money Mania is definitely a well-written, informative, thought provoking book.
It is an excellent resource for anyone taking an economics class (I wish I had a copy when I was taking Macroeconomics). Mr. Swarup does an excellent job discussing the history of economics and events that transpired therein. The quotes he chose to include are an excellent addition to the book, as are the graphics included between pages 168 and 169. The internet map was quite interesting. The author's writing style is interesting (never boring) and informative. He doesn't litter the book with a bunch of jargon that only business majors can understand, so this book would be an excellent reference source for anyone interested in economic history (and it's an entertaining read if someone just has an interest on the topic). The book would also be useful for those studying or interested in history as financial situations often influence relations with other nations, people, etc. There is a lot of useful advise and points to consider presented in the final chapter of the book, "The Land of the Blind" as well. I agree that the role of credit in an economy needs to be reassessed as a lot of financial crises have been rooted therein. Money Mania is definitely a well-written, informative, thought provoking book.
January 18, 2014
I enjoyed reading Money Mania. I learned a few things about economic history that I can use in my modern life today. Most people do not quite understand economics, I myself being one of them. This book is very informative and explains economics in more laymans terms and is a good read for anyone wanting to understand how economics really work.
June 13, 2026
Money Mania, Bob Swarup
I’m usually not a fan of historians way of dramatized everything like a Super Bowl from the pasts highlight reel That becomes so un-in-touch with Reality. It becomes tough to take seriously. However our author with an economics background has done a great job of educating while entertaining to the point that you won’t even have to be interested in finances to enjoy
Book: foreign bond and autopsy, Max Winkler
Note: first found default 377bc Ancient Greece The cooperates were 10 city states that borrowed heavily and then defaulted on there debt to the “temple of Apollo at delis” but as winkler discovered, this was no isolated incident, subsequent accounts tell us economic recessions were not uncommon.
Where there is insufficient money people find ways of creating more, the history of finance are replete with innovation such as bills of exchange, Bonds, paper money and derivatives. The phenomenon is understandable.
Speculation conquer sense
Ego denies the end of luck, and instead, thanks, skill, knowledge and perchance.
When the bubble burst is surprising every time.
Nero took another modernness approach, The introduction of inflation through the debasement of currency….
Nero now proceeded to reduce the weight of the gold and silver coins, as well as the purity of the more commonly circulated silver denarius
Inflation became a facet a Roman life
Nero committed suicide in Ad68, another Caesar sacrifice on public opinion.
If you give people a lot of money, they will spend it.
Or so goes to theory
Spending boosts demand and demand today creates growth tomorrow
Nobel prize Economics: Thomas Schelling, studies on neighborhood dynamics (microeconomics)
I’m usually not a fan of historians way of dramatized everything like a Super Bowl from the pasts highlight reel That becomes so un-in-touch with Reality. It becomes tough to take seriously. However our author with an economics background has done a great job of educating while entertaining to the point that you won’t even have to be interested in finances to enjoy
Book: foreign bond and autopsy, Max Winkler
Note: first found default 377bc Ancient Greece The cooperates were 10 city states that borrowed heavily and then defaulted on there debt to the “temple of Apollo at delis” but as winkler discovered, this was no isolated incident, subsequent accounts tell us economic recessions were not uncommon.
Where there is insufficient money people find ways of creating more, the history of finance are replete with innovation such as bills of exchange, Bonds, paper money and derivatives. The phenomenon is understandable.
Speculation conquer sense
Ego denies the end of luck, and instead, thanks, skill, knowledge and perchance.
When the bubble burst is surprising every time.
Nero took another modernness approach, The introduction of inflation through the debasement of currency….
Nero now proceeded to reduce the weight of the gold and silver coins, as well as the purity of the more commonly circulated silver denarius
Inflation became a facet a Roman life
Nero committed suicide in Ad68, another Caesar sacrifice on public opinion.
If you give people a lot of money, they will spend it.
Or so goes to theory
Spending boosts demand and demand today creates growth tomorrow
Nobel prize Economics: Thomas Schelling, studies on neighborhood dynamics (microeconomics)
November 9, 2021
- People tend to move from one extreme to another: extreme greed to extreme fear. Wheres in reality, money making should be much less about emotion and narratives and more about numbers
- Roman economic history comprises of a large upswing and eventual downswing (lead by currency debasement). However, even in the upswing there were multiple cycles of expansion (lax tax, low interest rate and generous benefits) and decline (either massive government stimulus (sometimes helped sometimes different) or austerity, with higher interest rate, deflation and tight tax collection). On the other end, even during downswing times, there were times when the economic recovered (in fact, they were able to un-debase the currency at one point, until they couldn't)
- People tend to have one directional sense of the future. Similarly in Japan, the idea of Japan would continue to grow occurred even after the bubble busted. The opposite is true today for Japan. While the nation is doing not poorly, the perceived notion believes Japan is no longer a growth engine like before
- Complexity (namely, debt), while during the boom years bring prosperity to the public, during the down years it unravels even faster
- Roman economic history comprises of a large upswing and eventual downswing (lead by currency debasement). However, even in the upswing there were multiple cycles of expansion (lax tax, low interest rate and generous benefits) and decline (either massive government stimulus (sometimes helped sometimes different) or austerity, with higher interest rate, deflation and tight tax collection). On the other end, even during downswing times, there were times when the economic recovered (in fact, they were able to un-debase the currency at one point, until they couldn't)
- People tend to have one directional sense of the future. Similarly in Japan, the idea of Japan would continue to grow occurred even after the bubble busted. The opposite is true today for Japan. While the nation is doing not poorly, the perceived notion believes Japan is no longer a growth engine like before
- Complexity (namely, debt), while during the boom years bring prosperity to the public, during the down years it unravels even faster
January 11, 2023
It is perfectly good and adequate book on the 2008 financial crisis also looking at financial crisis in general, in a historical context. It is all very interesting but limited because it is about, or in response to the most recent financial crisis. Although it talks of the lack of memory in financial institutions when he goes back in history his examples, though interesting, are not really relevant because the differences in cultures and financial institutions are to great.
I read this book in 2014, I can't see any reason to read it in 2023, there are bound to be better accounts of the financial crisis and certainly better accounts of past financial crisis.
I read this book in 2014, I can't see any reason to read it in 2023, there are bound to be better accounts of the financial crisis and certainly better accounts of past financial crisis.
May 11, 2021
Very interesting book. I have read it for the first time after the last financial crisis and I am currently (2021) reading it once again. Hence, I can conclude its content is timeless and contains valuable lessons and observations on how history will repeat itself when it comes to human behaviour dealing with financial events.
March 20, 2021
Great insight on human nature and how it translates to the financial markets. I gained a better understanding of why the markets operate like they do.
July 21, 2021
One of the better introductory type economics books I've read. Interesting all the way through.
June 11, 2014
I like to think of myself as smart, but when it comes to certain topics, my eyes just glaze over. Economics is one of those topics. Bob Swarup has created an interesting history of financial crises throughout history, something that is certainly worth reading at a cursory level. But he loses me when he tries to speculate the causes of the varied crises.
Here are the basics: Humans are irrational and complex, therefore the economic models we use today are inherently flawed. In fact, we shouldn't use economic models at all, because human behavior cannot be predicted, and market crashes and recessions/depressions are just part of the natural rise and fall of the free market. (I think I'm explaining this right, I'm more of a historian than an economist, so I could be missing some vital points).
Interestingly enough, the most meaningful part of the book came to me on the very last page, in which Swarup talks about inequality: "...The rich grow richer every year not through earnings but through the investment income on their savings. However, people in lower quartiles are encouraged to consume more and more. If they do not save, their wealth remains unchanged because they have no money for investment and future growth... over time, this comes through in increasing inequality, not because of malicious intent but because of the nature of growth we have chosen for ourselves." Good stuff, but that's about the extent of the treatment he gives it. The rest of the book is made up of examples and stories that reinforce Swarup's theory that no true theory of economics can exist.
While this may be true, it made for some redundant reading. Most people looking for a answer will benefit from simply reading the last chapter, and skipping the rest of the book.
Here are the basics: Humans are irrational and complex, therefore the economic models we use today are inherently flawed. In fact, we shouldn't use economic models at all, because human behavior cannot be predicted, and market crashes and recessions/depressions are just part of the natural rise and fall of the free market. (I think I'm explaining this right, I'm more of a historian than an economist, so I could be missing some vital points).
Interestingly enough, the most meaningful part of the book came to me on the very last page, in which Swarup talks about inequality: "...The rich grow richer every year not through earnings but through the investment income on their savings. However, people in lower quartiles are encouraged to consume more and more. If they do not save, their wealth remains unchanged because they have no money for investment and future growth... over time, this comes through in increasing inequality, not because of malicious intent but because of the nature of growth we have chosen for ourselves." Good stuff, but that's about the extent of the treatment he gives it. The rest of the book is made up of examples and stories that reinforce Swarup's theory that no true theory of economics can exist.
While this may be true, it made for some redundant reading. Most people looking for a answer will benefit from simply reading the last chapter, and skipping the rest of the book.
February 5, 2014
I never knew how much I didn't know about money/finance/currency/banking/economics. The need to amass wealth is so very human. A large part of being human is balancing the emotional scales – on one side is hope, optimism and trust and on the other is arrogance, greed and fear. Lean too far in either direction and the scale tips over.
October 12, 2016
A great overview of the history of booms and busts from ancient Rome to the Great Recession. While many details have changed, the ways in which we react to booms and busts are remarkably similar throughout history. This book touches not just on economics but on the societal factors that impact market shifts.
March 11, 2014
Just won this on goodreads and very interested to read!
August 9, 2014
nothing new here
May 9, 2015
I was expecting this to be alot better. It just covered a bunch of basic economic principles and well known financial bubbles.
June 18, 2015
An interesting analysis of financial systems both current and from antiquity. A number of scary lessons on the inevitability of financial collapse given human behaviour/tendency.
Displaying 1 - 16 of 16 reviews