Wednesday, October 21, 2009

From the Shelves of the Paco Library



I didn’t have much time this week to do a proper book recommendation, so this is just a snapshot.

Regular readers will remember that I have mentioned author David Liss on a couple of occasions. He has created an interesting niche for himself writing novels centered on various 18th-century financial panics, including a wonderful series featuring thief-taker and investigator, Benjamin Weaver. I have just finished The Whiskey Rebels, which is a variation on the same theme.

Liss takes us to late18th-century America in an action-packed story that revolves around the bank panic of 1791. The book is structured in the form of two alternating first-person accounts by Ethan Saunders and Joan Maycott. Captain Saunders is a former spy for the Continental Army who was cashiered on phony charges of selling information to the British and has fallen on hard times. Joan Maycott is the daughter of a farmer who marries a carpenter, and who, with her husband, moves to the wilds of western Pennsylvania, her husband having been tricked into selling his unpaid army scrip in exchange for what turns out to be worthless land. Their lives become intertwined as Captain Saunders works with Alexander Hamilton to stave off the failure of the Bank of the United States, which is threatened by speculators, and Joan leads a conspiracy of western “whiskey men”, incensed over a new excise tax on their product, to destroy both Hamilton and his bank. The intricate plot features a host of well-drawn characters, including fictional treatments of actual historical figures, including Alexander Hamilton, the financial manipulator William Duer, a cameo appearance by Thomas Jefferson and a walk-on role for George Washington. In addition to the exciting plot, we learn much about the debate in our young country between those who favored a strong national government, and those who viewed the federalists as harbingers of a new tyranny (sound familiar?)

This is highly enjoyable historical fiction, and succeeds in what the genre, at its best, is supposed to do: it enables us to see a distant time through the eyes of the kind of people who lived it, transforming the old, dead past into something fresh and new.

6 comments:

Yojimbo said...

Oh that looks like a good one! A blend of financial and colonial era history, two of my interests.

Thanks Pacosan.

Paco said...

Yo, Jimbo (I was going to say, "Yo, Yojimbo", but it sounded kinda...strange)).

Are you a money man? When are equities gonna recover? Or are they?

Yojimbo said...

Paco:I"m simply a small time operator. Er, they have been recovering, especially anything in finance or commodities,China is sucking up everything in sight. Probably the last beat to windward in progress.

Paco said...

Yeah, they've walked up from the basement, but is the rally put together with chicken-wire and bondo? It's hard to see them not tanking again if all of the Democrat's spending plans come true.

Yojimbo said...

Points are points Pacosan. I agree that the secular economic trends portend disaster down the road.

The mother of all bears took just under three years,09/03/29-07/08/32The countertrend rally in that one took 2 quarters, this one has overreached that one. If you take the radical notion that this was the mother of all buying points you would have to look to the first leg up from 1932 to 1937. That one retraced just over 50 percent of the decline(41 to just under 200). This rally does not bear the same symmetry however.

Probably the best bet is some longterm trading range is being established. We had a massive rally from 1949 to 1966 and there we ran in place until the last quarter of 1974. This is probably just the mirror image of that.

Longterm cycles are point to very rough times during the middle two quarters of the next decade,2013-2017. Most of the secular trends will probalby take that long to fully manifest themselves.

Maybe that "may you live in intersting times" thing is way overrated.:(

Paco said...

Thanks, Yojimbo.

I believe that "May you live in interesting times" line was originally intended as a curse.

Woe is us