Episode 378: Learning from Market History

The US financial system's history, particularly the role of debt, central banking, and speculative bubbles, is examined through a conversation with Mark Higgins, Senior Vice President for IFA Institutionals and author of "Investing in US Financial History." Higgins emphasizes Alexander Hamilton's crucial role in establishing US creditworthiness and highlights the dangers of current debt levels, which exceed those of World War II. The discussion covers the historical impact of central banks, unregulated banking eras, and the recurrence of market manias and panics. Higgins expresses concern over the influx of capital into private markets, drawing parallels to historical speculative bubbles and flawed investment practices, and he also critiques the abuse of modern portfolio theory in promoting alternative investments.