Money of the Mind: Borrowing and Lending in America from the Civil War to Michael Milken

National Review, July 6, 1992

THIS entertaining, thought-provoking, and frequently amusing book will disturb those who believe that the American financial community has learned from past disasters. Rather, as the author writes, the best that can be said is that "sons and daughters tend to re-enact the errors of their grandparents more so than those of their parents." To prove his point Mr. Grant takes the reader through recurring crises in such areas as real estate, lending, and farmland. While Mr. Grant explains that "'More' is the best brief description of the evolution of credit in the United States," this is not his only theme. Perhaps most importantly, in this era of re-regulation, Mr. Grant looks at various government actions which, were they committed by an individual, would place him in severe legal difficulties. If there is a criticism to be made, it is that this book's approach resembles a history of the interstate highway system retold through multi-vehicle pile-ups. The fact is that this country is richer than a century ago. In no small part this is due to the expansion of credit and (one hates to admit) some government assistance.