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A financial crisis is one of the most dreaded buzzwords which is heard or read around the world. Either an economy is facing a recession or even a financial crisis, or there is a fear that it may be headed towards one, depending on several macroeconomic indicators. These indicators are marked declines in the per capita consumption, GDP, trade, money flow, energy consumption, and employment rate. Even the most powerful and economically strong nations in the world have gone through some devastating recessions in the past. Let us look at some of the worst global financial crisis the world has faced so far: #1. The Tulip Mania of 1634 Event This is one of the first recorded market crises of the early times, which happened in Holland when the price of the tulip buds rose to six times that of an average man's salary. The flowers originally imported from Turkey were considered exotic in Europe and everyone. The affluent and the aspiring affluent, even middle-class citizens, wanted to have tulips which were one of the most delicate flowers that perished quickly and could take about 12 years to flower from a seed. The Tulip business became so crucial in Holland that traditional agriculture was impacted. The price of tulips rose to as much as 5500 florins which are approximately equal to $ 825000. Stages of a bubble Consequences The prices, however, began to decline irrevocably by 1637 steeply, and those who had loaned to grow tulips with the expectation to sell at a higher price became bankrupt. This led to a financial meltdown. Watch this video documentary about Tulip Mania - The first economic bubble. #2. The Panic of 1772  Event This was also known as the Panic of 1772 or the Credit crisis. It originated in London when one of the partners in a major bank Neale, James, Fordyce, and Down, escaped to France having forfeited £ 300000. Consequences The bank collapsed, and people lost faith in the banking institution, which was the economy's pivot. This crisis later spread across Europe after the bank collapsed in London, followed by 20 other banks. The total number of bankruptcies in London was 556 in 1773. Watch this video: #3. The Panic of 1797  Event This recession occurred in the US as the land speculation bubble burst after the American Revolution. The aftermath of the UK and France wars led to the insolvency of the Bank of England, and the impact swam itself to the shores of North America and the Caribbean. Consequences These events together led to this great financial panic. It lasted three years until 1800, and although the situation began to improve thereafter, it had a lasting impact on people's minds. #4. The Post Napoleonic depression of 1815 The Post Napoleonic depression of 1815 Event After the Napoleonic wars, in England and Wales, there was a steep cut in wages, and especially the weavers were greatly impacted due to this. Their wages fell to less than half of what they used to earn before this period. This percolated slowly to the entire textile industry and then to the economic situation across the countries. The condition was further aggravated due to the Corn Laws, which were passed at this time. The intent was to keep out foreign goods and promote English agriculture, which was already impacted due to depression. This resulted in people having to buy poor quality local products at high prices. Consequence A famine and unemployment followed, which also spread to Scotland. This depression led to the collapse of export markets and saw its effect on the Panic of 1819 in the United States. #5. The great depression 1929 The great depression 1929 Event This recession, considered one of the worst recessions in the world, provided a textbook case study on financial crises. It lasted from 1929 to 1939, and it occurred in two phases: 1929 to 1933 and then again from 1937 to 1939. The intervening years had seen some growth in production due to a change in leadership on the political front in the US. The recession had started with the fall of Wall Street. The over-optimistic loans by bankers led to a shortage of money supply when the lenders defaulted on payments. Loans were called in, and it affected the entire system. Lack of regulations, fiscal policies, deposit insurances led to this large-scale collapse. Consequences The Great Depression of America caused wide-scale unemployment, poverty, and emigration away from the USA. There was a massive price deflation (Willard W. Cochrane, Farm prices: myth and reality (U of Minnesota Press, 1958), and crop prices fell below 60%. The impact was seen worldwide, and unemployment rose to 25% in the US and up to 33% worldwide. #6. The weird 1945 recession The weird 1945 recession Event This recession started in February 1945 and lasted through the eight months to October 1945. The impact, however, lasted much longer. This recession was expected following World War II, and there was a much-seen drop in demand for wartime goods, including weapons. Consequence Other countries reeled under the impact of the war and were still recuperating from their losses while the US GDP fell to a negative figure of -11.6% in 1946. Government spending was also greatly reduced, and the effect was seen in the economy. #7. The oil crisis of 1973 The oil crisis of 1973 Event This was one of the most dangerous crises in the world that led to one of the top 10 recessions in the world. The OPEC members (Organization of the Petroleum Exporting Countries) revolted against the USA and the allied nations of the US. The United States of America had sent armed troops to Israel against the Arab countries. Consequence The majority of the OPEC members are constituted by the Gulf countries or the Arab nations. They joined hands to raise the price of oil. This, in turn, created a huge shortage of oil supply, and the energy industries were directly impacted. Also, the other businesses suffered, and huge inflation was caused, which proved to be drastic for the world's economy. The Asian Financial Crisis of 1997 The Asian Financial Crisis of 1997 Image source Event Overextension of financial credit in Thailand and all its trading economies led to this critical situation in Asia. It began in Thailand in 1997 when it had to give up the fixed exchange rate with American dollars owing to a lack of foreign currency supply. Consequence This had a domino effect on the South East Asian partners of Thailand - Malaysia, Singapore, Indonesia, South Korea, Hongkong, and soon, the word spread out about the sad plight of these economies. The situation continued for the next three years, and the International Monetary Fund (IMF) had to step in to bail them out of a financial meltdown. Watch this video #9. The Lost Decade (1990 - 2000) The Lost Decade (1990 - 2000) Event The fall of land and asset prices in Japan in the early 1990s is referred to as The Lost Decade, which made the prices stagnant for a decade, and several firms went insolvent. It lasted until 2001 and witnessed one of the major slowdowns of a rapidly growing economy. Consequence The four years before the decade saw dangerously inflated stock prices, and this precarious bubble was burst in 1991, and land prices dropped to more than 15.5% from their peak. (Land Economic and Construction and Engineering Industry Bureau, Ministry of Land, Infrastructure, Transport and Tourism (2004) Survey on average housing land prices by use and prefecture). Japan's GDP fell from $5.33 trillion to $4.36 trillion from 1995 until 2000. Watch this video: #10. Great Recession of 2007 - 2008 The Great Recession of 2008 in numbers Event This is the most recent financial recessions the world has seen and one of the fiercest since the Great Depression. The hallmark event that marked the onset of this depression was the collapse of one of the world's biggest investment companies - Lehman Brothers. The Housing Bubble in the USA was created due to the optimism of the banks and lending institutions that led to huge credit which created a huge void due to the defaulters. Consequence The entire financial system collapsed, and the government buyout was required to save face. This impacted several international businesses and led to the downfall of companies, loss of jobs. It took almost another five years to recover from the losses completely. Watch this video where Warren Buffett explains the 2008 financial crisis: VICE on HBO looks at factors that led to the 2008 financial crisis and the efforts made by then-Treasury Secretary Henry Paulson, Federal Reserve Bank of New York President Timothy Geithner, and Federal Reserve Chair Ben Bernanke to save the United States from an economic collapse. The feature-length documentary explores the challenges these men faced, as well as the consequences of their decisions. #11. The Mother of All Recessions - 2020 According to UniCredit specialists, the world is heading to a deep recession. So deep that they say in a report, you can check here that “The mother of all recessions has arrived.” They expect most containment measures in the US and Europe to last through June and the global GDP to fall by about 6%. In the US, the economy will likely shrink by 10-11% this year, and in the eurozone, GDP may contract by about 13% in 2020. Speaking about the UK, there is also a shrink of GDP by 10-11%. For comparison, the global GDP contracted by 4.2% between Q4 2007 and Q2 2009. We will update the article with further developments. Meanwhile, check our top of 18 businesses that are recession-proof and will thrive. Conclusion In almost all of the above cases, the recessions have been caused due to overvaluation of commodities, unjustified optimism on the stock increase, irregular banking systems, or political misguidedness. With time, better financial system regulations have been able to get a grip on the economy. It has helped prevent a steady economic downfall or a total collapse of the financial system. Organizations like the IMF (International Monetary Fund) exist to monitor global economic changes. But recessions are periodic, and completely avoiding one has not been possible. Uncontrollable situations like an epidemic, natural disasters, or calamity can throw an economy off balance, and an unpredictable financial crisis could arise. Sources: https://www.investopedia.com/terms/d/dutch_tulip_bulb_market_bubble.asp https://en.m.wikipedia.org/wiki/Crisis_of_1772 https://www.google.ae/publicdata/explore Frank, Robert H.; Bernanke, Ben S. (2007). Principles of Macroeconomics (3rd ed.). McGraw-Hill/Irwin.)

Are you ready to jump into the world of investing? Are you already investing but looking to improve your knowledge on the subject and, in turn, improve the performance of your investment decisions? Look online for investing advice, and you will be hit with a mountain of tips and tricks. There are investing books, blogs, forums, and social media groups that all make various promises about investing. Of course, you only have limited time to spend on learning and research. If you tried to read every resource out there, then you would spend the rest of your life reading and no time actually investing. There’s also the question of which resources actually benefit the reader and which ones are get-rich-quick schemes wrapped up in a different package. Spending your time reading the wrong resources could have similar effects to not research at all. We want to help you wade through the glitzy promises, the stylish covers, and the marketing lingo to find the best investing books you can dive into now. The following list of top 10 best investing books will give you a great starting point no matter how experienced an investor you may be. 1. The Financial Diet: A Total Beginner's Guide to Getting Good with Money by Chelsea Fagan An Indie Personal Finance Bestseller, “The Financial Diet” is a great starting point for millennials who need a crash course on managing their finances. The Financial Diet gives you tools to make a budget, understand investments, and deal with your credit. It focuses on creating and adhering to a budget, tips for having those awkward money conversations with friends, and even what ingredients to keep stocked in your kitchen (since eating out is a major budget killer). It also hits on more advanced finance topics, like how to care for your house or get started with investing. Author Chelsea Fagan founded the popular website and YouTube channel, The Financial Diet. So The Financial Diet gives you the tools to negotiate a raise and the perfect cocktail recipe to celebrate your new salary.  2. The Essays of Warren Buffett Do you want to learn about investing? Why not learn from the best investor there is. Warren Buffett is such a figure in the investing community that his actions can change how the market behaves in the blink of an eye. The story of Warren Buffett and his massive conglomerate, Berkshire Hathaway, is nothing short of incredible. The company actually began as two companies, both cotton mills. In the 1960s, Warren Buffett took control of Berkshire Hathaway as it struggled to remain relevant. Since then, he has invested in businesses like Geico, Coca-Cola, and Apple. In the 1980s, investors could buy Berkshire Hathaway shares for $275. Today, a single Class A Berkshire Hathaway share trades for over $300,000. There is, quite simply, no comparison to the great mind of Warren Buffett. Getting a glimpse into the investing style of Warren Buffett is a great place for any investor to begin their education journey. See what Buffett looks for when seeking to invest in a company and the thought process that goes into all of his investment decisions. 3. The Intelligent Investor by Benjamin Graham The Intelligent Investor is recommended by people like Warren Buffett and Joel Greenblatt, who, as you have noticed, are also featured on this list. That kind of praise alone makes this one of the best investing books you can read. When reading The Intelligent Investor, you may notice a lack of excitement building inside you about investing. This is somewhat by design. Benjamin Graham did not write this book to convince people they could make millions in the stock market. Rather, he educates readers on how to research companies and invest for the long term. Over the years, The Intelligent Investor has been revised several times. Warren Buffett says that chapters 8 and chapter 20 are the basis of his investing philosophy. Many other top investors continue to recommend this book today, which is a testament to the quality advice that Benjamin Graham originally published in the 1940s.  4. A Random Walk Down Wall Street by Burton Malkiel This is another great book for beginners ready to dip their feet into investing but may be turned off by the phrases and concepts that seem almost foreign. A Random Walk Down Wall Street puts investing concepts in relatable terms. The chances are that you are simply looking for a way to build for your future through investing. With a million copies sold, Burton G. Malkiel’s “A Random Walk Down Wall Street” continues to be at the top of reading lists for investors—and with good reason. This book educates readers about how to avoid the schemes and ridiculous sales pitches with basic investing literacy. After reading A Random Walk Down Wall Street, you should understand investing concepts more clearly and better grasp your own investing goals. Most importantly, you will understand the path that takes you from your first investment to a successful retirement. 5. The Little Book of Value Investing by Christopher H. Browne There are many ways to make money in today’s market, but the one strategy that has truly proven itself over the years is value investing. Now, with The Little Book of Value Investing, Christopher Browne shows you how to use this wealth-building strategy to buy bargain stocks around the world successfully. Value investing is the practice of purchasing stocks that are undervalued and holding them for longer periods of time, ideally earning returns when those stocks rebound. Though not a new concept, it’s an undervalued one for many investors (pun intended). Christopher Browne’s “The Little Book of Value Investing” shows readers how to put this strategy into action to purchase bargain stocks and grow your portfolio. This title has earned glowing reviews from The Independent, Financial Times (U.K.), Bloomberg, and The Wall Street Journal.  6. The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns by John C. Bogle Too many people think that they can outsmart the market or other investors. They make risky investments, lose money, and are turned off the idea of investing forever. In this book, John Bogle covers common sense investment strategies to help people build wealth in the stock market. None of the tactics outlined in this book are sexy. Nothing will make you 1000% profit year over year. Instead, reading The Little Book of Common Sense Investing will keep you grounded and focused on realistic investment goals. Building wealth through investing can be done, but it takes time and good decision-making skills. If you fear investing because you could lose your savings, then this book should appeal to you. After reading John Bogle’s book, you should feel confident that smart investing is the best way to build wealth for yourself and your family. 7. Rich Dad Poor Dad by Robert Kiyosaki The first book on our list isn’t just about investing and, yet, it may be one of the best investing books you can read. Beginners should take a special interest in Rich Dad Poor Dad. Robert Kiyosaki outlines the importance of financial literacy, saving, and investing. He emphasizes throughout the book the concept of paying yourself first. Essentially, he believes that people should always dedicate money to saving or investing, even if the amount seems small and insignificant. In the book, Robert Kiyosaki gives a unique, personal look at many investing concepts widely regarded as smart investing strategies. For example, “pay yourself first” is basically another way of explaining dollar-cost averaging. By reading this book, you will learn more about investing concepts, personal finance topics, and how someone could build a successful life for their family by using these simple, easy-to-digest ideas. 8. The Little Book That Beats the Market by Joel Greenblatt At the beginning of this article, we promised no glitzy sales pitches with ridiculous promises. So a book with this title would seem out of place on our sensible list, wouldn’t it? While the title may seem flashy like a bag of magic beans, Joel Greenblatt provides a straightforward formula for identifying companies that have outperformed the market for years. Not only can investors learn how to identify the companies that will earn them sizeable returns, but the formula for building their portfolio is clearly laid out. To put things simply, Joel Greenblatt advocates buying strong companies with good performance at an affordable price. That seems like a no-brainer, right? The art is in identifying these companies and the strategy as a whole. The title of this book may seem like the contents within are too good to be true. As they say, never judge a book by its cover. 9. The Millionaire Next Door by Thomas Stanley When you think of wealth accumulation, you likely think of incredibly wealthy people flying on private jets and vacationing on their luxury yachts. The truth is that middle-class families are the best at accumulating wealth, according to this book. Like Rich Dad Poor Dad, The Millionaire Next Door covers a lot of topics beyond just investing. Personal finance is a major focus of the book, along with investing and strategies that help people accumulate wealth faster than their peers who may live in similar situations, work similar jobs, and have similar backgrounds. Much of the book discusses how small decisions can have major impacts down the road. For example, the author discusses the opportunity cost of smoking a pack of cigarettes per day instead of investing that money. There are some legitimate criticisms of the book. The author assumes that people would invest wisely instead of spending money on habits like smoking or drinking. In addition, many believe that the author conveniently ignores those in the middle class who have attempted to accumulate wealth and failed. Even with those criticisms in mind, the concepts put forth in The Millionaire Next Door make it one of the best investing books you can read. 10. Market Wizards by Jack Schwager As you may have gathered, investing is not an exact science. There is no simple formula that all investors follow to build their wealth. In Market Wizards, Jack Schwager interviews many top traders to get their opinions and insights regarding investing. This is an important book to read for new investors because it sheds light on the wide range of strategies that investors can employ to reach various goals. Are you investing for rapid growth? Are you investing for a long-term goal like retirement? Most importantly, Market Wizards allows readers to tap into many great minds at once rather than just one. Through compelling interviews, Jack Schwager brings complex investing topics to the masses, which is why his book makes our list of the best investing books. 11. The Only Investment Guide You’ll Ever Need by Andrew Tobias (Bonus) The title of this book is bold, considering the incredible investing books we have listed already. However, there are so many tips packed into this book by Andrew Tobias that you will certainly be able to gain a solid understanding of investing by reading it cover to cover. Even if you only have a small amount of money to invest, this guide can help you make the most of your investment to build a strong financial future. Best of all, Andrew Tobias takes complex investing topics and explains them with humor in a way that even the most beginner investors can understand. Perhaps the most important aspect of this book is how the concept of personal finance and saving is tied into investing. The author clearly explains how the two ideas tie together. Without savings, you cannot invest, and this book should help you better grasp both. How to Choose Which Books to Read Because there are so many books for new investors, it can be hard to settle on one to start. Fortunately, you can consider a few factors to help your decision. Then, you can avoid pushing off your investing plans. Instead, you can get started with strategies to help meet your goals. Your background First, you need to consider your current or past financial situation. If you grew up in a wealthy family, you might have more investing experience than someone from a working-class family. You should also consider your current status. Whether you’re in school, working full-time, or own a business, that can affect how you may want to invest. If you don’t have much money to invest, you may want to start with dividends. Or you may decide you need to learn about other financial topics along with investing. However, if you have a lot of money, you may decide to invest in real estate. Then, you can turn the investment into profit. Your interests You also have to consider what interests you about investing. In some cases, you may know of the perfect index fund or property for your next investment. However, you may need to compare a few investment options. That way, you can figure out which is the most interesting or applicable to you. If you don’t know what type of investing you want to do, you can read a couple of books. Choose books from different areas of investing so that you can get a better idea of each. Your priorities Along with your interests, consider your financial goals and priorities. If you want to quit your job and rely on passive income, it can take time to achieve that. However, if your goal is to save for your regular retirement, you can start saving more easily. It will still take years to reach your goal, but you may not need to save or invest as much. You also should consider how much time you have to dedicate to your investments. If you don’t want to maintain a house, real estate investing probably isn’t the best option. Diversify After you read a couple of books for new investors, keep reading more. Find books on different investing topics so that you can diversify your knowledge and then your portfolio. Once you start making money from dividends, you may decide to put some of it into a rental property. Or maybe you decide to invest in different mutual funds. If you want to rely on your investments for financial freedom, you need to diversify. While some strategies can offer better returns than average, you never know when one option will fail. Conclusion This list of the best investing books is a great place for any investor to create their own personal reading list. Some books dive deep into specific investment topics while others loop in personal finance subjects as well. Find some of the books on this list that grab your attention and begin soaking in the wealth of knowledge these books contain. If nothing else, you will come out a more confident investor. Of course, you never want to stop learning. These books are just a starting point. As you dive deeper into investing, you will discover new books that capture your attention. Always strive to learn more about investing while remembering the basics of successful investors. With all of that knowledge working for you, investing will seem much less daunting and, perhaps, even downright exciting.