The Ascent of Money: A Financial History of the World

Fantastic. I read this four years ago while studying economics in college, and it served as an engaging and insightful transition point in my education from pure economic theory into more practical finance.

Every kid in High School/University should read a book like this. Well written, Historically accurate, Fascinating, Illuminating and is almost everyone's favorite Subject. So many books written about money, how to make it, how to invest it, how to manage it but not so much about how it came to be and why is it important anyway. Especially in light of the new Cryptocurrencies today.

Refreshing, insightful, humorous perspective coming from a European rather than the typically isolated view of most Americans (The Giant Island Province). It turns out that the economic boom and bust phenomenon has been going on for centuries (John Law, France!) and the basic idea of leverage, credit, bonds, paper money, stock, is, to a large extent, integral with the development of the American colonies. The current "crisis" caused by the sub prime mortgage mess + the securitization of debt, leveraged insurance vehicles, derivatives, are nothing new . . . we all need to read more history. We were suckers, ask Allan Greenspan (taken in by Ayan Rand "Objectivism")! Hook, line and sinker. Gulp!

This is a very readable and well-informed history of finance, its readability due in part, no doubt, to the fact that it is "the book of the movie", being written as an accompaniment to the TV series of the same name, which was aired on both sides of the Atlantic in late 2008. One of its principal strengths is also due to its TV origins - excellent descriptions of documented examples of key episodes in the evolution of modern finance - the Great Depression, the Savings and Loan crisis, the sub-prime mortgage debacle. In spite of this populist writing approach, the book is authoritative and thorough. Several hundred footnote references to other writers and an exceptionally lengthy list of acknowledgments of experts consulted, certify to its seriousness. Ferguson is a formidably learned academic with past and present academic achievements including professorships at Oxford, Harvard, NYU and Harvard Business School. He has written extensively on modern history, his preferred fields being finance, economic history and colonialism. He quite often argues unconventional views, a notable example being his view in "The War of the World" that it would have been better for Europe if Germany had won the First World War. "The Ascent of Money" is however a straightforward history, organised by themes (Currency, Stocks, Credit, etc.) which are very well developed and illustrated by a multitude of fascinating examples and quotations. Inevitably for a book which takes its story up to May 2008, the reader will focus on the continuing story of the housing boom, the derivative explosion and the credit crisis. . Equally inevitably, as the reader watches the crisis unfold further, he will wish the book were more fully up-to-date. But Ferguson argues that the crisis is attributable to factors that do not require awaiting its conclusion to understand its causes - the inevitability of overshoot in the financial world, Darwinian creative destruction, greed,the innate human swings from euphoric confidence to distrust and despair. If, as in the past, others find his conclusions too controversial or perhaps simplistic, one can only reflect that events, opinions and decisions concerning the credit crisis which have emerged since May 2008 have added very little in the way of convincing explanations or courses of action. "The Ascent of Money" is a very worthwhile read in very troubling times. Vincent O'Doherty February 15th 2009

Ferguson has written a "must-read" book for anyone who enjoys history, finance, or who would like to put our current financial situation into the larger context of history. The genius of this book is that he focuses on the broad topics of the history of money. He doesn't lose the reader in details when describing the evolution of money and the world's financial systems. One of the things I most enjoyed was his use of the different components of our financial system to describe its evolution. All along the way Ferguson shares with the reader why certain nations were/ are more evolved than others, and shares a glance into the future. Overall, a well written book that I highly recommend!

Ferguson deserved considerable credit in Colossus for suggesting that a reckoning was upon us. In this book, written before the real calamity hit, he points to the assumptions that have been made leading to the crash. It's plain that no there's no quick fix, that problems are deep, but not without precedent. His breadth of erudition comes through as always but his voice as a writer has continued to strengthen. He's smart, doesn't talk nonsense, and clearly articulates the false premises in our recent past and suggests what should change going forward. A far better book than say, Bad Money - less Bush bashing, better focus on the longstanding issues. Or Disaster Capitalism - which is so polemical. Why not get the story from a professional academic?

"Those who don't learn from History are doomed to repeat it!" - George Santayana The current financial crisis has got almost everyone re-evaluating their financial situations. I am no different. Knowledge is power and with all the shenanigans on Wall Street today it is critical for financial survival to become as knowledgeable as possible about money and finances. This is accomplished by reading top notch information that can help you make wise decisions about your financial future. Fortunately we live in a time when quality "just in time" information is available. Ferguson's book fits into this category. It is a crucial piece of the knowledge needed to understand the history of money and what others have done in the past when they were faced with financial Armageddon. Although history doesn't repeat itself exactly, it does provide important clues to today's economic meltdown and how the survive...and maybe prosper in the future. As Ferguson states in the Introduction: "The more integrated the world's financial markets become, the greater the opportunities for financially knowledgeable people wherever they live -and the bigger the risk of downward mobility for the finically illiterate." He goes on to say: "The rewards for `getting it' have never been so immense. And the penalties for financial ignorance have never been so stiff." There are many excellent historical examples in the book that provide key elements to the mindset of the best financial experts who have ever lived. How others in history (such as the Rothschild family) made their fortunes...and mistakes, teaches how proper planning and execution can be applied successfully to make money. It also teaches how chance and fate work their way into the equation. Ferguson's book is a key element in learning about money. He occasionally delves off topic and can lose the reader if not cautious; however this is a small price to pay for the knowledge contained between the pages of this book. Financial Shock: A 360º Look at the Subprime Mortgage Implosion, and How to Avoid the Next Financial Crisis Chain of Blame: How Wall Street Caused the Mortgage and Credit Crisis The Re-Discovery of Common Sense: A Guide to: The Lost Art of Critical Thinking