Quote for the Week
After the violence of a crisis has subsided, it becomes clear that it is not upon Capital, nor even upon legitimate commerce that the blow has fallen heaviest. As a rule. Panics do not destroy Capital; they merely reveal the extent to which it has been previously destroyed by its betrayal into hopelessly unproductive works…
Broadly defined, then, Panic is the destruction, in the mind, of a bundle of beliefs. As a first result of that destruction, a mass of paper documents, the outward expressions of those beliefs from which they derived their circulating force, becomes a mere dead residuum, leaving a void which can only be filled by other agents possessing that vital grasp on belief which they have lost. And the void must be filled. The volume of transactions and engagements cannot immediately be reduced. But Panic, the most rigorous of realists, rejects the dead symbols of Credit, and exacts Capital in the mobile form of currency. Suum cuique is now the universal rule, and everybody reclaims his own. The usual magazines of Capital in that form are rapidly drained, and the rate of its hire is proportionately raised. The Panic period is therefore marked by great scarcity of mobile Capital; because, though not less in quantity than before, it is drafted off into a thousand unusual channels to perform the functions commonly exercised by Credit. — John Stuart Mill (source)
From the Archives
Last Call
- Math Problems – The Better Letter
- Psychological Paths of Least Resistance – M. Housel
- Strategic Thinking Matters – Klement on Investing
- The Demise of Silicon Valley Bank – Net Interest
- What Does the Demise of SVB Tell Us About Our Behaviour During Market Shocks? – Behavioral Investment
- Hetty Green: America’s First Value Investor – CAIA
- 40 Lessons from 30 Years – N. Eliason
- The Mystery Millionaire of Gage Park – Chicago
- Why Are All Action Heroes Named Jack, James, or John? – Slate
- 50 Photographs That Reshaped Sport – Guardian
