Mansharamani - Boombustology: spotting financial bubbles before they burst

1. Chapter 1
2. Chapter 2
3. Chapter 3
4. Chapter 4
5. Chapter 6
6. Chapter 7
7. Chapter 8
8. Chapter 9
9. Chapter 10
10. Chapter 11
11. Chapter 12
12. Conclusion
13. Addenduma

1. Chapter 1
2. Chapter 2
3. Chapter 5
4. Chapter 7
5. Chapter 8
6. Chapter 9
7. Chapter 10
8. Chapter 11
9. Chapter 13

Boombustology offers a compelling and pragmatic framework for understanding the forces that propel markets to excessive levels in boom times only to see them bust when those forces no longer apply. In this very enjoyable book, Vikram Mansharamani takes the reader on a tour through some of the most notable booms/busts in history, illustrating how one can view them through the application of his microeconomic, macroeconomic, psychological, political, and biological lenses. The analysis is robust.

SANDRA URIE, Chairman Emeritus & former Chief Executive Officer, Cambridge Associates LLC

Far too few people take bubbles seriously until it's too late. Vikram Mansharamani's book should encourage investors and borrowers alike to question whether they're just riding a wave they don't understand. And whether, at the back of their minds, they are relying on being part of a big enough crowd to get bailed out by a kindly taxpayer if things turn sour . Either way, Boombustology should provoke thought about the context in which some investments and loans are made.

SIR PAUL TUCKER, Chair, Systemic Risk Council; author of Unelected Power: The Quest for Legitimacy in Central Banking and the Regulatory State; former Deputy Governor, Bank of England

Vikram Mansharamani has written a book that makes economic theory vividly accessiblewhile providing innovative and nuanced analysis that will challenge the assumptions of even the most seasoned experts. He forces readers to think about how booms and subsequent busts move across the globe and across markets, becoming more exaggerated as more capital chases fewer opportunities. Highly recommended!

KIM Y. LEW, Chief Investment Officer, Carnegie Corporation of New York

Boombustology presents a practical approach to thinking about a world that is characterized by massive global economic uncertainty. While many academics conduct thoughtful analysis of market dynamics, Mansharamani provides a useful framework for investors, allocators, and their advisors to better appreciate the context within which they make their decisions. A must-read.

LORI VAN DUSEN, Founder & Chief Executive Officer, LVW Advisors

By employing an unusually diverse set of perspectives to increase understanding of the character of financial crises, Mansharamani gives his readers a valuable set of guideposts to help them find a safe path through future market disruptions.

DAVID F. SWENSEN, Chief Investment Officer, Yale University

Asset class bubbles are by far the most important events in the life of both stock markets and economies. Boombustology is a comprehensive, informative, and entertaining look into how bubbles form, what really constitutes a bubble, and, critically, the causes and circumstances of bubbles breaking. It is essential reading for any bubbliophile.

JEREMY GRANTHAM, Co-founder & Chief Investment Strategist, GMO

If there's one thing that cleaves Wall Street's winners from its losers, it's the ability to say, I've seen this movie, and I know how it ends.' Vikram Mansharamani's Boombustology will entertain readers with an entire film festival of past, present, and future investment disaster flicks that will make them laugh, make them cry, and save their bacon.

WILLIAM J. BERNSTEIN, bestselling author of The Investor's Manifesto: Preparing for Prosperity, Armageddon, and Everything in Between

Investors are attracted to bubbles. To paraphrase Orwell, they find themselves playing with fire without even knowing that fire is hot. Vikram Mansharamani's highly readable book will set them right. It provides a sound intellectual framework for identifying bubbles before they burst. If you buy only one investment book this year, make it Boombustology.

EDWARD CHANCELLOR, author of Devil Take the Hindmost: A History of Financial Speculation

Through an artful and accessible melding of theoretical frameworks and historical cases, Boombustology provides the essential tools to identify and navigate the financial booms and busts that can be so hazardous to one's portfolio. Required reading for all investors.

PAUL A. REEDER, President, PAR Capital Management

Who is the better investor: the generalist or the expert specialist? In this spirited book, Vikram Mansharamani brings to life five famous boom-bust episodes and argues for a multidisciplinary, generalist approach. Boombustology is an engaging read for specialists and generalists alike.

JOHN GEANAKOPLOS, James Tobin Professor of Economics at Yale University; External Professor, the Santa Fe Institute; and Partner, Ellington Capital Management

SECOND EDITION

Vikram Mansharamani, PhD

Copyright 2019 by Vikram Mansharamani. All rights reserved.

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Published simultaneously in Canada.

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