Boombustology: Spotting Financial Bubbles Before They Burst

by Vikram Mansharamani

Wiley | March 8, 2011 | Hardcover

Not yet rated | write a review
A multi-disciplinary framework through which to spot financial bubbles before they burst.

Based on a popular undergraduate seminar, entitled Financial Booms & Busts, taught by the author at Yale University, Boombustology presents a multi-disciplinary framework for identifying unsustainable booms and forthcoming busts.

The magnitude of our recent financial crisis mandates a firm understanding of this phenomenon before the next crisis occurs. Boombustology provides an in-depth look at several major booms and busts and offers a solid framework for thinking about future occurrences.

  • Examines why booms and busts are not random and can therefore be identified
  • Focuses upon various theoretical and disciplinary lenses useful in the study of booms and busts
  • Contains a framework for thinking about and identifying forthcoming financial bubbles including several tell-tale indicators of a forthcoming bust.
  • Illustrates the framework in action by evaluating China as a potential bubble in the making. 

If you want to make better decisions in today’s turbulent investment environment, understanding the dynamics of booms and busts is the best place the start.  Boombustology can help you achieve this elusive goal.

Vikram Mansharamani is a Lecturer at Yale University and a global equity investor.

Format: Hardcover

Dimensions: 272 pages, 9.3 × 6.3 × 1 in

Published: March 8, 2011

Publisher: Wiley

Language: English

The following ISBNs are associated with this title:

ISBN - 10: 0470879467

ISBN - 13: 9780470879467

Found in: Finance

save 10%

  • In stock online
$39.95 list price

$35.88 ea online

eGift this item

Give this item in the form of an eGift Card.

+ what is this?

This item is eligible for FREE SHIPPING on orders over $25.
See details

Easy, FREE returns. See details

Item can only be shipped in Canada

Downloads instantly to your kobo or other ereading device. See details

All available formats:

Reviews

– More About This Product –

Boombustology: Spotting Financial Bubbles Before They Burst

Boombustology: Spotting Financial Bubbles Before They Burst

by Vikram Mansharamani

Format: Hardcover

Dimensions: 272 pages, 9.3 × 6.3 × 1 in

Published: March 8, 2011

Publisher: Wiley

Language: English

The following ISBNs are associated with this title:

ISBN - 10: 0470879467

ISBN - 13: 9780470879467

About the Book

"The book makes an argument that booms and busts are not random and can therefore be identified. It's structured similarly to how the course at Yale by Mansharamani has been taught. The first third of the book focuses upon various theoretical and disciplinary lenses useful in the study of booms and busts. The second third of the book evaluates historical cases of financial booms and busts via those lenses. The final third of the book summarizes the findings from part two and develops a profile for a typical financial bubble. The book concludes with a framework for thinking about and identifying forthcoming financial extremes and a discussion of various candidates for the "next bubble.""--

Table of Contents

Foreword xi Preface Is There a Bubble in Boom–Bust Books? xvii Acknowledgments xxiii Introduction The Study of Financial Extremes: One-Armed Analysts, Secrets, Mysteries 1 Secrets versus Mysteries Different Problems Necessitate Different Approaches Financial Booms and Busts as Mysteries Part I Five Lenses Chapter 1 Microeconomic Perspectives: To Equilibrium or Not? 9 "Random Walks" and Accurate Prices: The Efficient Market Hypothesis Constant Instability and Inefficiency: The Theory of Reflexivity Reconciling Efficiency and Reflexivity Chapter 2 Macroeconomic Perspectives: The Impact of Debt and Deflation on Asset Markets and Prices 23 The Magnifying Power of Leverage Collateral Rates and Debt Dynamics Hyman Minsky’s Financial Instability Hypothesis Debt Defl ation and Asset Prices The Austrian Business Cycle Theory Integrating the Macro Lenses Chapter 3 The Psychology Lens: Homo economicus Meets Homo sapiens 45 The Study of Irrationality Is Born Heuristics Gone Wild: How Rules of Thumb Lead Us Astray Our Flawed Brains: Other Cognitive Issues The Certainty of Uncertainty Chapter 4 Political Foundations: Evaluating Property Rights, Price Mechanisms, and Political Distortions 69 Can Anyone Own Anything? Prices: To Guide or Be Guided? Political Distortions of Property and Price Chapter 5 Biological Frameworks: Epidemiology and Emergence 85 Revealing the Maturity of an Unsustainable Boom How Micro Simplicity Drives Macro Complexity Emergent Behavior in Human Swarms The Blind Lead
read more read less

From the Publisher

A multi-disciplinary framework through which to spot financial bubbles before they burst.

Based on a popular undergraduate seminar, entitled Financial Booms & Busts, taught by the author at Yale University, Boombustology presents a multi-disciplinary framework for identifying unsustainable booms and forthcoming busts.

The magnitude of our recent financial crisis mandates a firm understanding of this phenomenon before the next crisis occurs. Boombustology provides an in-depth look at several major booms and busts and offers a solid framework for thinking about future occurrences.

  • Examines why booms and busts are not random and can therefore be identified
  • Focuses upon various theoretical and disciplinary lenses useful in the study of booms and busts
  • Contains a framework for thinking about and identifying forthcoming financial bubbles including several tell-tale indicators of a forthcoming bust.
  • Illustrates the framework in action by evaluating China as a potential bubble in the making. 

If you want to make better decisions in today’s turbulent investment environment, understanding the dynamics of booms and busts is the best place the start.  Boombustology can help you achieve this elusive goal.

Vikram Mansharamani is a Lecturer at Yale University and a global equity investor.

From the Jacket

Praise for BoomBustology

"Asset class bubbles are by far the most important events in the life of both stock markets and economies. Boombustology is a comprehensive, informative, and entertaining look into how bubbles form, what really constitutes a bubble, and, critically, the causes and circumstances of bubbles breaking. It is essential reading for any bubbliophile."
Jeremy Grantham, Co-founder and Chief Investment Strategist, GMO

"Imaginative, accessible, and blessedly concise, Boombustology is a Baedeker for these boomy and busty times."
James Grant, Grant's Interest Rate Observer

"If there's one thing that cleaves Wall Street's winners from its losers, it's the ability to say, 'I've seen this movie, and I know how it ends.' VikramMansharamani's Boombustology will entertain readers with an entire film festival of past, present, and future investment disaster flicks that willmake them laugh, make them cry, and save their bacon."
William J. Bernstein, bestselling author of The Investor's Manifesto: Preparing for Prosperity, Armageddon, and Everything in Between

"Investors are attracted to bubbles. To paraphrase Orwell, they find themselves playing with fire without even knowing that fire is hot. Vikram Mansharamani's highly readable book will set them right. It provides a sound intellectual framework for identifying bubbles before they burst. If you buy only one investment book this year, make it Boombustology."
Edward Chancellor, author of Devil Take the Hindmost: A History of Financial Speculation

"Through an artful and accessible melding of theoretical frame works and historical cases, Boombustology provides the essential tools to identify and navigate the financial booms and busts that can be so hazardous to one's portfolio. Required reading for all investors."
Paul A. Reeder, President, PAR Capital Management

"Who is the better investor: the generalist or the expert specialist? In this spirited book, Vikram Mansharamani brings to life five famous boom-bust episodes and argues for a multidisciplinary, generalist approach. Boombustology is an engaging read for specialists and generalists alike."
John Geanakoplos, James Tobin Professor of Economics at Yale University; External Professor, the Santa Fe Institute; and Partner, Ellington Capital Management

About the Author

VIKRAM MANSHARAMANI is an experienced global equity investor and a Lecturer at Yale University, where he teaches a seminar called "Financial Booms and Busts." Mansharamani has a PhD and MS from the MIT Sloan School of Management, an MS in political science from the MIT Security Studies Program, and a BA from Yale University. He lives in Brookline, Massachusetts.