Part of the fun of writing a book is that you get invited to give talks on it at cool places. This Friday evening I'll be talking about my book Banking in Crisis at the Library of Mistakes in Edinburgh. The idea of this library, which was the brainchild of Russell Napier, is that it contains books on business, economic and financial mistakes so that the present and future generations learn not to repeat them. It is a great idea. Hopefully my book on the history of British banking crises contributes something to our knowledge of why crises happen and how they can be prevented (if there is the political will).
My colleague and former PhD student Gareth Campbell has created a website about the British Railway Mania - click here . This episode has been described by the Economist as probably the greatest bubble in human history. Gareth's website provides background on the Mania and posits some explanations for the 'bubble'. In his explanation of why the bubble happened, Gareth places a lot of emphasis on investor myopia regarding future dividends and uncalled capital. His study of investors during the episode does not support the view that this episode was fuelled by naive and irrational investors.