Aug 29 2007
Dr. Kurt Richebächer, Patriarch of the “Anti-Credit Bubble” Crowd,” Dies
It is with sadness that we pass on to our readers news we just learned, that internationally renowned economist Dr. Kurt Richebächer died earlier this week on Monday at the age of 88.
Dr. Richebächer was a great devotee of the Austrian School of economics, and was extremely helpful and accurate in predicting the present breakdown in the world’s credit markets. While lately, those espousing Austrian critiques of the wild credit excesses of recent decades have been dismissed and ignored for being wet blankets at the party, Dr. Richebächer was more of a celebrity some years ago. Once the head of the Dresdener Bank in Germany, his retirement party in 1982 was attended by luminaries such as Otto Pohl, then head of the Bundesbank, and Paul Volcker of the Fed. After retiring, Dr. Richebächer continued publishing a newsletter (The Richebächer Letter) that remained highly relevant up until its final issue in February of this year, when health issues prevented him from continuing.
We have quoted him often at both Vigilant Investor and through proprietary client materials via our wealth management firm, Ernharth Group. For years now I’ve retained a quote of his in my own email signature, as follows:
“Bulls of 1929 – like their 1990s counterparts – had their eyes glued on improving profits and stock valuations. Not a thought was given to the fact that the rising tide of money deluging the stock market came from financial leverage and not from savings.”
- Dr. Kurt Richebacher
What is astounding is that so many were blindsided recently despite his acute and well articulated warnings. His clarity and insights will be deeply missed. Those seeking a deeper understanding of the current situation would do well to read whatever materials of his they can find, including the timeless wealth of knowledge contained in his past newsletters.
Update: We just found a wonderful tribute piece from Wilfred Hahn, a long time colleague of Dr. Richebächer, which provides substantial detail about his life and legacy.
[...] A short portrait: http://www.ernharth.com/vi/2007/08/29/dr-kurt-richebacher-rip/ [...]