From Charles P. Kindleberger (1910-2003), economic historian:
It happens that crashes and panics often are precipitated by the revelation of some misfeasance, malfeasance, or malversation (the corruption of officials) engendered during the mania. It seems clear from the historical record that swindles are a response to the greedy appetite for wealth stimulated by the boom. And as the monetary system gets stretched, institutions lose liquidity, and unsuccessful swindles are about to be revealed, the temptation to take the money and run becomes virtually irresistible. It is difficult to write on this subject without permitting the typewriter to drip with irony. An attempt will be made.
Manias, Panics, and Crashes: A History of Financial Crises (Macmillan, 1978)
It’s only a matter of time before the swindles at the rotten core of our financial system are revealed, although we already know the two biggest swindles: government debt and central banking.
