[IP] Re: The Economic Crisis and its Implications for The Science of

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From: Sheryl Coe - Reportica <reportica@gmail.com>

Date: April 26, 2009 11:27:25 AM EDT

Subject: Re: [IP] Re: The Economic Crisis and its Implications for The Science of Economics

Dave Farber,

I gave Mackay's famous book as a '401K mourning' gift to a friend at the start of the current crash. This edition is the best because it was republished in 1934, I believe in 1932 as well:

"Although there be no scientific cure, yet, as in all primitive, unknown (and therefore diabolic) spells, there may be potent incantations. I have always thought that if, in the lamentable era of the "New Economics" culminating in 1929, even in the very presence of dizzily spiraling prices, we had all continuously repeated, "two and two still make four," much of the evil might have been averted. Similarly, even in the general moment of gloom in which this forward is written, when many began to wonder if declines will ever halt, the appropriate abracadabra may be: "They always did."

-- Bernard M. Baruch in his introduction to Mackay's _Extraordinary Popular Delusions and the Madness of Crowds_ republished in 1934. Emphasis mine. That edition is not available online but the introduction is reprinted in many places.

Baruch credits Mackay with getting him out of the market in time...

I am looking for the pamphlet mentioned at the following link that Baruch had reprinted about the collapse of tulip market in Holland, mentioned here in this reprint of Baruch's introduction to Mackay:
http://www.google.com/books?id=M3cmWEUQ8hYC&pg=PA37&dq=baruch+introduction+to+madness+of+crowds#PPA37,M1
If anyone has a link, let me know.

Also, is anyone amazed that current economic textbooks already 'cover' this? I haven't read these.

http://academic.cengage.com/cengage/instructor.do?totalresults.do?page=null&keyfor=allsite&keyitem=all&keytype=null&resultfor=higheredu&resulttype=instructor&keyword_all=Economics&pagefrom=search&disciplinenumber=400&product_isbn=9781424059669&contextelement=http://academic.cengage.com/cengage

http://academic.cengage.com/cengage/instructor.do?totalresults.do?page=null&keyfor=allsite&keyitem=all&keytype=null&resultfor=higheredu&resulttype=instructor&keyword_all=Global%20Economic%20Crisis&pagefrom=search&disciplinenumber=413&product_isbn=9781424059683&contextelement=http://academic.cengage.com/cengage

I am waiting for Krugman's updated edition!

-- Sheryl

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