Ladies and gentlemen, welcome to Grant's Interest Rate Observer Radio.

It is my pleasure today to introduce a guest of Russell Napier, who is a well-traveled

and extremely well-read theorist and strategist about the equity markets, and indeed many markets.

He was born in Belfast, not Alabama, as it will presently be revealed.

He is the co-founder of the Electronic Research Interchange.

He's been a long-standing consultant to CSLA, and he is an originator of the online platform for high quality research

is called Electronic Research Interchange, otherwise known as Eric.

And he is the author of a fortnightly strategy piece called The Solid Ground and of a book

of compelling cyclical as well as

historical interest. And its title is The Anatomy of the Bear lessons from Wall Street's

Four Great Market Bottoms. And he teaches financial history at Edinburgh. And he is the founder,

the founder of the library of mistakes.

Now Russell, before moving on to buying low and selling hype, please do tell us about the

library of mistakes.

I'm an author, and it seems to me this is going to be read two ways, the books you

really should not have written or books about error.

What are we talking about? Well, I hope you take this the

right way, but it wouldn't exist if it wasn't for you, which is a quote I read from you many

years ago, which said that in the, and I'll have to paraphrase it, in sciences, that knowledge was

cumulative, but in finance it was merely cyclical. And I didn't come into this business with any knowledge of finance whatsoever because I'm a lawyer but I did read that

comment of yours and it always stuck in my mind and the older I got the more it was proved to be

correct so I thought maybe we could do something about that cumulative thing then that's where

...