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To: jblair
I am going to point you to classics about principles, not anything contemporary. I don't see a commentator around today who is both fully on top of affairs and fundamentally sound, though Randall Forsyth (credit markets commentator for Barron's) is as close as it gets in the contemporary financial press. Jim Grant is also useful, (Grant's Interest Rate Observor is his publication), but can be exremist at times.

Here are the worthwhile classics.

Manias, Panics and Crashes by Charles Kindleberger. If you have the time, also his Financial History of Western Europe and The World in Depression. Lombard Street by Walter Bagehot, still the classic manual on how a central bank operates.

And also, to be used with caution but still essential on these matters, The Theory of Money and Credit by Ludwig von Mises. With caution because some of his ideas on the nature of capital were untrue and unsound, and some of his ideas on currency reform inpractical and ill-advised. But his understanding of the subject is still very high. He gives the Austrian view of cycles and the role of monetary policy errors. He is quite wrong to think cycles are entirely due to recent government forms and specific monetary policy mistakes, however, as Kindleberger's abundant historical evidence, most of it from far older times, makes plain.

Kindleberger is the essential corrective to Mises' ideological excesses, being empirical, pragmatic, and sober enough to live in this world, instead of in one he only hopes for or dreams about.

It is also worth knowing the investment side of things from the likes of Ben Graham (Security Analysis, the original 1932 edition).

I hope this helps.

24 posted on 09/18/2008 7:00:42 PM PDT by JasonC
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To: JasonC

It helps very much, Jason. I’m not a complete neophyte but I am not too proud to ask guidance.

I am familiar with Hayek and Friedman. Ludwig von Mises, I need to read. More on the origins of European and American systems, as well.

Gonna get the Kindleberger book. I’m good with “Mr. Market” and I recommend “Margin of Safety” by Seth Klarman. Klarman is a Graham disciple who wrote with great clarity. Benoit Mandelbrot is great, IMO, if you care for critiques of modern portfolio theory(Gaussian Dist.)

Central banking is shadowy to me, and I’d like to improve my understanding. Thanks, again.


37 posted on 09/18/2008 8:58:20 PM PDT by jblair (Air Force Brat)
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