“The monetary history of the last four hundred years has been replete with financial crises. The pattern was that investor optimism increased as economies expanded, the rate of growth of credit increased and economic growth accelerated, and an increasing number of individuals began to invest for short-term capital gains rather than for the returns associated with the productivity of the assets they were acquiring. The increase in the supply of credit and more buoyant economic outlook often led to economic booms as investment spending increased in response to the more optimistic outlook and the greater availability of credit, and as household spending increased as personal wealth surged.”

— Charles P. Kindleberger

Manias, Panics, and Crashes: A History of Financial Crises (1978), Ch. 13 : The Lessons of History and the Most Tumultuous Decades Ever

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Charles P. Kindleberger 5

American economic historian 1910–2003

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Charles P. Kindleberger 5

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