“This book is an essay in what is derogatorily called "literary economics," as opposed to mathematical economics, econometrics, or (embracing them both) the "new economic history." A man does what he can, and in the more elegant - one is tempted to say "fancier" - techniques I am, as one who received his formation in the 1930s, untutored. A colleague has offered to provide a mathematical model to decorate the work. It might be useful to some readers, but not to me. Catastrophe mathematics, dealing with such events as falling off a height, is a new branch of the discipline, I am told, which has yet to demonstrate its rigor or usefulness. I had better wait. Econometricians among my friends tell me that rare events such as panics cannot be dealt with by the normal techniques of regression, but have to be introduced exogenously as "dummy variables." The real choice open to me was whether to follow relatively simple statistical procedures, with an abundance of charts and tables, or not. In the event, I decided against it. For those who yearn for numbers, standard series on bank reserves, foreign trade, commodity prices, money supply, security prices, rate of interest, and the like are fairly readily available in the historical statistics.”

“The oldest problem in economic education is how to exclude the incompetent. A certain glib mastery of verbiage-the ability to speak portentously and sententiously about the relation of money supply to the price level-is easy for the unlearned and may even be aided by a mildly enfeebled intellect. The requirement that there be ability to master difficult models, including ones for which mathematical competence is required, is a highly useful screening device.”

“In Chapter 5 we consider swindles and defalcations. 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.”

“I can see patterns in events, and behaviors; in mathematics, I follow slower”

“In my own professional work I have touched on a variety of different fields. I’ve done work in mathematical linguistics, for example, without any professional credentials in mathematics; in this subject I am completely self-taught, and not very well taught. But I’ve often been invited by universities to speak on mathematical linguistics at mathematics seminars and colloquia. No one has ever asked me whether I have the appropriate credentials to speak on these subjects; the mathematicians couldn’t care less. What they want to know is what I have to say. No one has ever objected to my right to speak, asking whether I have a doctor’s degree in mathematics, or whether I have taken advanced courses in the subject. That would never have entered their minds. They want to know whether I am right or wrong, whether the subject is interesting or not, whether better approaches are possible… the discussion dealt with the subject, not with my right to discuss it. But on the other hand, in discussion or debate concerning social issues or American foreign policy…. The issue is constantly raised, often with considerable venom. I’ve repeatedly been challenged on grounds of credentials, or asked, what special training do I have that entitles you to speak on these matters. The assumption is that people like me, who are outsiders from a professional viewpoint, are not entitled to speak on such things. Compare mathematics and the political sciences… it’s quite striking. In mathematics, in physics, people are concerned with what you say, not with your certification. But in order to speak about social reality, you must have the proper credentials, particularly if you depart from the accepted framework of thinking. Generally speaking, it seems fair to say that the richer the intellectual substance of a field, the less there is a concern for credentials, and the greater is the concern for content.”

“I am by nature a person suspicious of the economic machine that feeds me. And yet I am a captive of that economic machine, and my mind is structured by its lessons and demands. I consume its wealth with zest. I drive a truck, watch a color television, and write on a computer, but I cannot overcome the feeling that these objects and the industrial culture that produced them are temporary things, a kind of fat beast feeding on the bounty of the earth that will starve to death within the next century, or at least be severely diminished.”

“Money is a public good; as such, it lends itself to private exploitation.”