Category Financial Crises
The Fed’s Delay in Tightening of Monetary Policy Actually Means Loosening
The Fed’s Delay in Tightening of Monetary Policy Actually Means Loosening Investors have had plenty of market-moving Federal Reserve news to digest this week: Janet Yellen apparently is a shoo-in as the next Fed chief after Larry Summers dropped out of the running, while Ben Bernanke kept monetary policy on hold for now by not […]
Risk on/risk off correlations are fading fast
Risk on/risk off correlations are fading fast By Stephen Foley in New York If risk on/risk off is off, what’s on? It had all been so simple. Good news on US jobs? Buy equities, commodities, emerging markets, and sell bonds. New eurozone wobble? Sell equities, commodities, emerging markets, buy bonds. More ON THIS STORY […]
How money is created today: The rules of the economy by Positivemoney.org.uk
1. MORE MONEY in the economy –>> MORE DEPT Problem is : But a damaged banking system means that today banks aren’t creating enough money. W have to do it for them Sir Mervy King, GOvernor of the Bank of Enland. 2. LESS DEPT –>> LESS MONEY n the economy When people […]
18th century crises: Panic of 1796-97
From Wikipedia, the free encyclopedia The Panic of 1796–1797 was a series of downturns in Atlantic credit markets that led to broader commercial downturns in both Britain and the United States. In the U.S., problems first emerged when a land speculation bubble burst in 1796. The crisis deepened when the Bank of Englandsuspended specie payments on February 25, 1797 under the Bank […]
18th century crises: Credit crises of 1772 orginated in London
Credit crisis of 1772 source: wikipedia The Credit Crisis of 1772 originated in London and then spread to other parts of Europe, such as Scotland and Netherlands. Before crisis From the mid 1760s to the early 1770s, the credit boom, supported by merchants and bankers, facilitated the expansion of manufacturing, mining and internal improvements in both […]
18th Century Crises: South Sea Bubble
South Sea Bubble The Governor and Company of the merchants of Great Britain, trading to the South Seas and other parts of America, and for the encouragement of fishing, commonly called the South Sea Company,[1] was a British joint-stock company founded in 1711, created as a public-private partnership to consolidate and reduce the cost of national debt. The company […]
17th century: Tulip mania
Tulip mania was a period in the Dutch Golden Age during which contract prices for bulbs of the recently introduced tulip reached extraordinarily high levels and suddenly collapsed. At the peak of tulip mania, in February 1637, some single tulip bulbs sold for more than 10 times the annual income of a skilled craftsman. It […]
14th century: The Crash of Peruzzi and the Bardi family in 1345
The Crash of the European Financial System in 1345 Florentine banking family. By 1310 they were the wealthiest family in Florence. They and the other two leading family banks, the Peruzzi and the Acciaiuoli, maintained branches at locations stretching from England and the Netherlands to North Africa and the Middle East. The company’s basic operating capital belonged to the […]
Crises of the Third Century
source: wikipedia The Crisis of the Third Century (also “Military Anarchy” or “Imperial Crisis”) (AD 235–284) was a period in which theRoman Empire nearly collapsed under the combined pressures of invasion, civil war,plague, and economic depression. The Crisis began with theassassination of Emperor Alexander Severus at the hands of his own troops. By 258–260, the Empire split into three competing states: the Gallic Empire, including the Roman […]
The Financial Engineer 