The new, fully-updated edition of the respected guide to understanding financial extremes, evaluating investment opportunities, and identifying future bubbles

Now in its second edition,Boombustology is an authoritative, up-to-date guide on the history of booms, busts, and financial cycles. Engaging and accessible, this popular book helps investors, policymakers, and analysts navigate the radical uncertainty that plagues todays uncertain investing and economic environment. Author Vikram Mansharamani, an experienced global equity investor and prominent Harvard University lecturer, presents his multi-disciplinary framework for identifying financial bubbles before they burst. Moving beyond the typical view of booms and busts as primarily economic occurrences, this innovative book offers a multidisciplinary approach that utilizes microeconomic, macroeconomic, psychological, political, and biological lenses to spot unsustainable dynamics. It gives the reader insights into the dynamics that cause soaring financial markets to crash. Cases studies range from the 17th Century Dutch tulip mania to the more recent US housing collapse.

The numerous cross-currents driving todays marketstrade wars, inverted yield curves, currency wars, economic slowdowns, dangerous debt dynamics, populism, nationalism, as well as the general uncertainties in the global economydemand that investors, policymakers, and analysts be on the lookout for a forthcoming recession, market correction, or worse.

An essential resource for anyone interested in financial markets, the second edition ofBoombustology:

A comprehensive exploration of how bubbles form and why they burst,Boombustology, 2nd Edition is packed with a wealth of new and updated information for individual and institutional investors, academics, students, policymakers, risk-managers, and corporate managers alike.

VIKRAM MANSHARAMANI is an experienced global equity investor and a lecturer at Harvard University. Previously, he taught a seminar called "Financial Booms and Busts" to undergraduates at Yale University. 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 Lexington, Massachusetts.

Foreword

Foreword to the First Edition

Preface Is There a Bubble in BoomBust Books?

Acknowledgments

Introduction The Study of Financial Extremes: One-Armed Analysts, Secrets, and Mysteries

Part I Five Lenses

Chapter 1 Microeconomic Perspectives: To Equilibrium or Not?

Chapter 2 Macroeconomic Perspectives: The Impact of Debt, Deflation, and Mispriced Money on Asset Markets

Chapter 3 The Psychology Lens: Homo Economicus Meets Homo Sapiens

Chapter 4 Political Foundations: Evaluating Property Rights, Price Mechanisms, and Political Distortions

Chapter 5 Biological Frameworks: Epidemiology and Emergence

Part II Historical Case Studies

Chapter 6 Tulipomania: A Bubble in Seventeenth-Century Holland

Chapter 7 The Great Depression: From Roaring Twenties to Yawning Thirties

Chapter 8 The Japanese Boom and Bust: A Credit-Fueled Bubble Economy

Chapter 9 The Asian Financial Crisis: The Mirage of a Miracle

Chapter 10 The U.S. Housing Boom and Bust: The Homeowners Society Creates the Peoples Panic

Chapter 11 Chinas Credit-Fueled Investment Boom

Part III Looking Ahead

Chapter 12 Spotting Bubbles Before They Burst: A Method for Identifying Unsustainable Booms

Chapter 13 Boombustology in Action: Is India Next?

Conclusion Hedgehogs, Foxes, and the Dangers of Making Predictions

Addendum A Passive Investing Bubble?

About the Author

Index