These two reviews by David Warsh capture the essence of two great books:
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Your Money and Your Life: A Lifetime Approach to Money Management
By Robert Z. Aliber.
I am a great fan of the walk-around-the-pond-with-a-companionable-friend format. This new version of a 1982 book began when the benefits office at the University of Chicago asked Aliber to speak to retiring faculty about financial planning.
He discovered that many of them (at least those not involved in serial marriages) were millionaires, the result of generous pensions, rising real estate prices and the bull market in stocks. "After my presentation, I would get calls -- let's have lunch," he writes. This book collects a couple of dozen such conversations and organizes them under three headings: decisions involving expenditure, investment and financial planning. Wondering whether to buy a new car or one that has been slightly used? Whether to go for public or private education? To rent or buy? To load up on insurance? To annuitize or not? Curious about how to construct a bond ladder? Anxious about senior health care? Aliber is full of wisdom on all these counts and more.
Retired now after 39 years as a professor at Chicago's Booth School of Business, he is author of The International Money Game, as well as the inheritor who has turned Charles P. Kindleberger's classic Manias, Panics and Crashes: A History of Financial Crises into an ongoing text.
Manias, Panics and Crashes: A History of Financial Crises
By Charles P. Kindleberger
This book first appeared in 1978. The author, professor of international economics at the Massachusetts Institute of Technology, wanted to remind his readers about a phenomenon that the efficient markets craze of the 1970s deemed impossible: "bubbles," meaning price changes that would grow large before they inevitably burst. He did so by illustrating the '70s counter-fad -- Hyman Minsky's mathematical (and largely unfathomable) model of financial fragility -- with a wealth of historical examples dating all the way back to the Tulip manias of the Dutch Republic. "Some time in the next five years you may kick yourself nor not reading and re-reading Manias, Panics and Crashes," blurbed Nobel laureate Paul Samuelson. Kindleberger revised the book three times, then turned it over to Aliber, who has updated it twice, inevitably diluting Kindleberger's distinctive kinetic, astringent style as he incorpoated his own views.
A paperback version of the canonical fourth edition goes for nearly $50. The latest version, in which Aliber becomes the lead author, is due out this spring.