Feb

6

This documentary is a necessity for those interested in markets.

The South Sea Bubble - The First Financial Crash

Khilav Majmudar adds:

The South Sea bubble spared no one, even Isaac Newton! Here is a detailed paper written on his interaction with the bubble, written by a mathematician with a more-than-passing interest in the history of technological and financial manias:

Newton’s financial misadventures in the South Sea Bubble

A very popular investment anecdote relates how Isaac Newton, after cashing in large early gains, staked his fortune on the success of the South Sea Company of 1720 and lost heavily in the ensuing crash. However, this tale is based on only a few items of hard evidence, some of which are consistently misquoted and misinterpreted. A superficially plausible contrarian argument has also been made that he did not lose much in that period, and John Maynard Keynes even claimed Newton successfully surmounted the South Sea Bubble. This paper presents extensive new evidence that while Newton was a successful investor before this event, the folk tale about his making large gains but then being drawn back into that mania and suffering large losses is almost certainly correct. It probably even understates the extent of his financial miscalculations.

Humbert B. offers:

UK Natl Archives: The South Sea Bubble of 1720

May

26

This modern Jack Aubreyesque story of naval warfare is some of the best fiction I've read recently. Lots of action written in beautiful prose.

The Oceans and the Stars, by Mark Helprin.

A Navy captain near the end of a decorated career, Stephen Rensselaer is disciplined, intelligent, and determined to always do what’s right. In defending the development of a new variant of warship, he makes an enemy of the president of the United States, who assigns him to command the doomed line’s only prototype––Athena, Patrol Coastal 15––with the intent to humiliate a man who should have been an admiral.

Big Al recommends:

Covers key psychological issues around trading, with clear action steps:

The Mental Game of Trading: A System for Solving Problems with Greed, Fear, Anger, Confidence, and Discipline, by Jared Tendler.

Khilav Majmudar is reading:

Models.Behaving.Badly.: Why Confusing Illusion with Reality Can Lead to Disaster, on Wall Street and in Life, by Emanuel Derman.

Ferdydurke

In this bitterly funny novel by the renowned Polish author Witold Gombrowicz, a writer finds himself tossed into a chaotic world of schoolboys by a diabolical professor who wishes to reduce him to childishness. Originally published in Poland in 1937, Ferdydurke became an instant literary sensation and catapulted the young author to fame. Deemed scandalous and subversive by Nazis, Stalinists, and the Polish Communist regime in turn, the novel (as well as all of Gombrowicz’s other works) was officially banned in Poland for decades. It has nonetheless remained one of the most influential works of twentieth-century European literature.

Vic adds:

The Oceans and the Stars, and The Whole Story: two excellent books that have similar trajectories and conclusions - struggle, with love conquering adversity.

Vic's twitter feed

Archives

Resources & Links

Search