The Meb Faber Show - Better Investing The Parallels of Past and Present in Finance - Mark Higgins | #594
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Aug 22, 2025 Mark Higgins, Senior VP for IFA Institutional and author of Investing in U.S. Financial History, dives into the lessons of financial history. He connects past crises like the Panic of 1792 to present-day market trends, exploring the evolution of reserve currencies and the role of Bitcoin. Higgins raises critical issues in private markets, such as inflated valuations and ethical concerns in asset management. He shares insights on inflation, investment strategies of historical figures, and the cyclical nature of financial behaviors, enriching the discussion with personal anecdotes.
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Early Insider Trading Sparked Market Panic
- William Duer used insider knowledge of Hamilton's plans to buy discounted federal debt and profit massively.
- His later attempt to corner two bank stocks sparked a panic that helped lead to the Buttonwood Agreement and NYSE origins.
Financial Memory Is Short
- Financial memory fades quickly, often within a generation, causing repeated mistakes.
- Mark Higgins and Meb Faber emphasize that human behavior repeats, so historical perspective prevents repeated market errors.
Debt Used For Dangers, Then Paid Down
- The U.S. traditionally ran debt mainly for public dangers and then paid it down afterward.
- That Hamiltonian discipline largely disappeared post-1960s, leaving unusually persistent deficits today.
