FT's Samuel Brittan on the financial crises of capitalism.
sounds like Charles Kindleberger’s Manias, Panics and Crashes should be required reading for those investing in dubai (and in particular its real estate).
Samuel Brittan: 'New opportunities for profit are seized and overdone “in ways so closely resembling irrationality as to constitute a mania”. Once the excess is realised “the financial system experiences a sort of distress, in the course of which the rush to reverse the expansion process may become so precipitous as to resemble panic”. In a panic the reverse movement takes place “with a crash in the prices of commodities, houses, buildings, lands, stocks, bonds – in short whatever has been the subject of the mania”.'
