Extraordinary Popular Delusions and the Madness of Crowds [View article]
But you are ignoring that when those bubbles collapsed, the monetary system was based on gold. Not based on a fiat currency like the dollar. Never in history, has a fiat currency gone up in value (deflation) over a long period of time. This time will be no exception.
On Oct 14 02:49 PM Jasper M wrote:
> While Mackay's book is indeed a timely title to conjure with, I would > remind the author that the collapse of every one of the manias he > lists was DEflationary - mass removal of credit, and therefor money > supply, from the system, by market forces, usually in Spite of the > wishes of those claiming to manage such things.
Extraordinary Popular Delusions and the Madness of Crowds [View article]
On Oct 14 02:49 PM Jasper M wrote:
> While Mackay's book is indeed a timely title to conjure with, I would
> remind the author that the collapse of every one of the manias he
> lists was DEflationary - mass removal of credit, and therefor money
> supply, from the system, by market forces, usually in Spite of the
> wishes of those claiming to manage such things.