Friday, 28 January 2011

How to prevent a personal financial crisis
(Part 2 of 4)


The horrid reports about financial irresponsibility that one sees on television represent conspicuous exceptions to the prudent mentality of millions of working men and women. This is not a new phenomenon and, without much effort, we can find traces of similar events in previous centuries.

The liquidity crisis that took place in London in the year 1826, almost two hundred years ago, was very similar to what we have experienced in the initial decade of the 21st century. Thousands of investors lost their fortune, including many famous personalities, such as the Scottish novelist Walter Scott.

You might know Walter Scott from his historical novels, such as "Ivanhoe" and "Rob Roy," which belonged to the the best-selling books of his time. If Scott had adopted the discipline of living within his income, which was considerable, he might have enjoyed longer and certainly healthier years.

To be continued in Part 3

[Text: http://johnvespasian.blogspot.com]

[Image by H√ľnerauge under Creative Commons Attribution License. See the license terms under http://creativecommons.org/licenses/by/3.0/us]

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