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England: South Sea Bubble - The Sharp Mind of John Blunt - Extra History - #1
 
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Support us on Patreon! http://bit.ly/EHPatreon Watch more Extra History! http://bit.ly/ExtraHistory Subscribe for new episodes every other Saturday! http://bit.ly/SubToEC Follow us on Facebook! http://bit.ly/ECFBPage Follow us on Twitter! http://bit.ly/ECTweet Follow us on Twitch! http://bit.y/ECTwitch ____________ When Robert Harley steps in as England's new Chancellor of the Exchequer, he discovers that not only is the government deeply in debt, but no one knows quite how much debt it owes. Because vicious political infighting between the Tory and Whig politic parties made it difficult to pass new tax laws, Harley turned to a private financier named John Blunt to help find enough money for England to keep up with its expenses for the year. Using Harley's government resources, Blunt instigated a series of get-rich schemes that drove artificial demand for unsustainable land and lottery investments with tremendous short term gains. Before the year was done, Blunt had successfully covered the shortfall for the government that year - albeit at the cost of driving England's already outrageous debt even higher. ___________ Get the intro music here! http://bit.ly/1EQA5N7 *Music by Demetori: http://bit.ly/1AaJG4H Listen to the outro music here! http://bit.ly/1ERCS9G __________ Extra History - Warring States Japan: Sengoku Jidai Chapter 1: Battle of Okehazama: http://bit.ly/1xgZxfi James Recommends - City Building Games Across the Ages Anno Series (Dawn of Discovery): http://bit.ly/18mJxPg
Views: 1581690 Extra Credits
28) South Seas Bubble of 1720: the First Major Manipulation of Financial Markets
 
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Notes for Economics www.saseassociates.com Next, we will look at the British crisis known as the South Seas Bubble, a crisis that stands as the first major manipulation of financial markets. Until the Crash of 1929, this bubble endured as the classic example of opportunistic self-enhancement. The South Seas Company was formed by Parliament as a British trade concession in 1711. This was a monopoly for areas of the Pacific that were under British rule. The company was a startup firm with no sales and no earnings, only with great prospects. The real prospects centered on market manipulation and insider trading. In the early eighteenth century, Britain had entered its period of imperial prosperity. However, stock ownership remained a matter of privilege that was limited mostly to the aristocracy. Furthermore, women could not inherit land, although females could own stock at that time. A pent-up demand for stock developed because of wide accessibility along with the added benefit that dividends that were paid out of profits went untaxed. Parliament granted the enterprise a monopoly concession along with loaned capitalization of ₤10 million pounds sterling. Publicly unknown at the time, members of Parliament had bought capitalization bonds for South Seas at ₤55. Once the company went public, these investors exchanged each unit for ₤100 of stock in the South Seas Company. However, its inexperienced directors quickly entered into the slave trade, a venture at which they failed. South Seas maintained its stock price in the market despite this misfortune as well as a war with Spain, shipments of goods that were misrouted and lost, and bonuses paid to the directors in a form that diluted the value of shares. Nevertheless, the situation improved in 1719. Britain signed the Peace of Utrecht, a treaty with Spain that enabled British trade with Mexico. Given this newfound prosperity, the directors of South Seas offered to fund the entire British national debt of ₤31 million. Stock prices doubled. Five days after the bill became law, South Seas offered a new issue of stock at ₤300 per share. The company offered a second issue at ₤400. This one rose to ₤550 per share within a month. The directors offered yet another at 10% down, with no payments for one year. Share price continued to rise to ₤1,000. The feasibility of the scheme became secondary as the Greater-Fool Theory took over—speculators would purchase shares, prices would rise, secondary buyers would appear, and the speculators would profit in the after-market. In the summer of 1720, the directors liquidated their own shares. The news of their divestiture leaked out quickly. Share price collapsed and a market panic ensued. The British government narrowly averted the complete erosion of public credit. In response to this threat, Parliament passed the Bubble Act that forbade issuance of stock certificates in any company. In addition, Britain implemented other measures in order to restore confidence. The government confiscated the estates of company directors in an attempt to remunerate South Seas Company investors. Other propositions put forth in Parliament included placing bankers in sacks filled with snakes and throwing them into the Thames River! In summarizing this bubble, let us analyze the events. First, there was a pent-up demand for investment opportunities. Second, the government sponsored a trade-concession monopoly. Third, inexperienced management failed to create any real value for the company. Fourth, war and the entry of new competition exerted external pressures on the firm. Fifth, graft occurred, which involved members of Parliament in an effort to pass legislation that was advantageous to a private company. Sixth, dilutive stock dividends and new (dilutive) stock issues were sold on generous terms and margins while insiders manipulated trading that included the dumping of shares.
Views: 8880 Video Economist
England: South Sea Bubble - Too Big to Fail - Extra History - #2
 
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Support us on Patreon! http://bit.ly/EHPatreon Watch the South Sea Bubble series! http://bit.ly/1xfVN9W Subscribe for new episodes every other Saturday! http://bit.ly/SubToEC Follow us on Facebook! http://bit.ly/ECFBPage Follow us on Twitter! http://bit.ly/ECTweet Follow us on Twitch! http://bit.y/ECTwitch ____________ Frustrated at every turn by the Whig-controlled Bank of England, Harley and Blunt decide to start their own instution: a trading company that will exchange government debt for stock shares. This new South Sea Company will have a monopoly on trade in the rich new lands of South America, but all the ports there are controlled by Spain, with whom Britain is at war. So Blunt pushes the country into a premature and unfavorable peace with Spain, enlisting famous authors to write his propaganda and convincing Queen Anne herself to tip the balance of Parliament in his favor. After the queen dies and the government changes hands, Blunt kicks Harley and his Tory leaders out of the company. He manages to bring King George I himself on board as a ceremonial leader, linking the success of the South Sea Company with the reputation of the monarchy. But while his maneuvering inflates the value of his company's stock, it's never produced anything close to the amount of money he's convinced people to invest in it. ___________ Get the intro music here! http://bit.ly/1EQA5N7 *Music by Demetori: http://bit.ly/1AaJG4H Listen to the outro music here! http://bit.ly/1ERCS9G __________ James Recommends - City Building Games Across the Ages Anno Series (Dawn of Discovery): http://bit.ly/18mJxPg Extra Credits - How High Costs Drive Players Away from F2P Games Free to Play is Currently Broken: http://bit.ly/1AobnQV
Views: 1136792 Extra Credits
The South Sea Bubble (In Our Time)
 
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Melvyn Bragg and his guests discuss The South Sea Bubble, the speculation mania in early 18th-century England which ended in the financial ruin of many of its investors. The South Sea Company was founded in 1711 with a view to restructuring government debt and restoring public credit. The company would ostensibly trade with South America, hence its name; and indeed, it did trade in slaves for the Spanish market even after the Bubble burst in 1720. People from all walks of life bought shares in the South Sea Company, from servants to gentry, and it was said the entire country was gripped by South Sea speculation mania. When the shares crashed and the company collapsed there was a public outcry and many people faced financial ruin, although some investors sold before the crash and made substantial amounts of money. For example, the bookseller Thomas Guy made his fortune and founded a hospital in his name the following year. But how did such a financial crisis develop and were there any lessons learnt following this early example of a stock market boom and bust? With: Anne Murphy Senior Lecturer in History at the University of Hertfordshire Helen Paul Lecturer in Economics and Economic History at the University of Southampton Roey Sweet Head of the School of History at the University of Leicester Producer: Natalia Fernandez.
Views: 311 BBC Podcasts
The South Sea Company Asset Bubble of Great Britain Explained in One Minute
 
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The South Sea Bubble is one of the oldest asset bubbles out there and the first ever documented market manipulation example. At first it seemed that the newly formed South Sea Company might put an end to Great Britain's debt problems and Robert Harley, the man in charge of Great Britain's finances, was extremely excited. The South Sea Bubble was possible because people fell for the lies John Blunt fed them about the profitability and potential of the South Sea Company. In reality however, the South Sea Company was anything but a good business and as such, the South Sea Company Asset Bubble ended up leaving a lot of people bitterly disappointed. Just like all other asset bubbles, the South Sea Bubble represents a fascinating lesson when it comes not only to economics but also human nature. Please like, comment and subscribe if you've enjoyed this video. To support the channel, give me a minute (see what I did there?) of your time by visiting OneMinuteEconomics.com and reading my message. Bitcoin donations can be sent to 1AFYgM8Cmiiu5HjcXaP5aS1fEBJ5n3VDck and PayPal donations to [email protected], any and all support is greatly appreciated! Oh and I've also started playing around with Patreon, my link is: https://www.patreon.com/oneminuteeconomics Interested in reading a good book? My first book, Wealth Management 2.0 (through which I do my best to help people manage their wealth properly, whether we're talking about someone who has a huge amount of money at his disposal or someone who is still living paycheck to paycheck), can be bought using the links below: Amazon - https://www.amazon.com/Wealth-Management-2-0-Financial-Professionals-ebook/dp/B01I1WA2BK Barnes & Noble - http://www.barnesandnoble.com/w/wealth-management-20-andrei-polgar/1124435282?ean=2940153328942 iBooks (Apple) - https://itun.es/us/wYSveb.l Kobo - https://store.kobobooks.com/en-us/ebook/wealth-management-2-0 My second book, the Wall Street Journal and USA Today bestseller The Age of Anomaly (through which I help people prepare for financial calamities and become more financially resilient in general), can be bought using the links below. Amazon - https://www.amazon.com/Age-Anomaly-Spotting-Financial-Uncertainty-ebook/dp/B078SYL5YS Barnes & Noble - https://www.barnesandnoble.com/w/the-age-of-anomaly-andrei-polgar/1127084693?ean=2940155383970 iBooks (Apple) - https://itunes.apple.com/us/book/age-anomaly-spotting-financial-storms-in-sea-uncertainty/id1331704265 Kobo - https://www.kobo.com/ww/en/ebook/the-age-of-anomaly-spotting-financial-storms-in-a-sea-of-uncertainty Last but not least, if you'd like to follow me on social media, use one of the links below: https://www.facebook.com/oneminuteeconomics https://twitter.com/andreipolgar https://ro.linkedin.com/in/andrei-polgar-9a11a561
Views: 5370 One Minute Economics
South Sea Company | Wikipedia audio article
 
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This is an audio version of the Wikipedia Article: https://en.wikipedia.org/wiki/South_Sea_Company 00:03:04 1 Foundation 00:06:55 1.1 Conception of the Company 00:10:21 1.2 Flotation 00:13:40 1.3 The slave trade 00:16:34 1.4 Changes of management 00:20:13 1.5 War 00:20:46 2 Refinancing government debt 00:23:17 2.1 Trading more debt for equity 00:27:55 2.1.1 Public announcement 00:31:09 2.2 Inflating the share price 00:33:00 2.3 Bubble Act 00:36:56 2.4 Top reached 00:38:57 2.5 Recriminations 00:41:17 2.6 Quotations prompted by the collapse 00:42:06 3 A trading company 00:46:17 3.1 Slave trade under the Asiento 00:49:19 3.2 The annual ship 00:51:30 3.3 Arctic whaling 00:54:35 4 Government debt after the Seven Years' War 00:55:27 5 Armorials 00:56:19 6 Officers of the South Sea Company 00:56:43 7 In fiction 00:57:54 8 See also Listening is a more natural way of learning, when compared to reading. Written language only began at around 3200 BC, but spoken language has existed long ago. Learning by listening is a great way to: - increases imagination and understanding - improves your listening skills - improves your own spoken accent - learn while on the move - reduce eye strain Now learn the vast amount of general knowledge available on Wikipedia through audio (audio article). You could even learn subconsciously by playing the audio while you are sleeping! If you are planning to listen a lot, you could try using a bone conduction headphone, or a standard speaker instead of an earphone. Listen on Google Assistant through Extra Audio: https://assistant.google.com/services/invoke/uid/0000001a130b3f91 Other Wikipedia audio articles at: https://www.youtube.com/results?search_query=wikipedia+tts Upload your own Wikipedia articles through: https://github.com/nodef/wikipedia-tts Speaking Rate: 0.8702286176193287 Voice name: en-GB-Wavenet-D "I cannot teach anybody anything, I can only make them think." - Socrates SUMMARY ======= The South Sea Company (officially 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) 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 was also granted a monopoly to trade with South America and nearby islands, hence its name (the modern use of the term "South Seas" to refer to the entire South Pacific was unknown in England at the time). When the company was created, Britain was involved in the War of the Spanish Succession and Spain controlled South America. There was no realistic prospect that trade would take place, and the company never realised any significant profit from its monopoly. Company stock rose greatly in value as it expanded its operations dealing in government debt, peaking in 1720 before collapsing to little above its original flotation price; the economic bubble became known as the South Sea Bubble. The Bubble Act 1720 (6 Geo I, c 18), which forbade the creation of joint-stock companies without royal charter, was promoted by the South Sea company itself before its collapse. In Great Britain, a considerable number of people were ruined by the share collapse, and the national economy greatly reduced as a result. The founders of the scheme engaged in insider trading, using their advance knowledge of when national debt was to be consolidated to make large profits from purchasing debt in advance. Huge bribes were given to politicians to support the Acts of Parliament necessary for the scheme. Company money was used to deal in its own shares, and selected individuals purchasing shares were given loans backed by those same shares to spend on purchasing more shares. The expectation of profits from trade with South America was used to encourage the public to purchase shares, but the bubble prices reached far beyond the profits of the slave trade.A parliamentary enquiry was held after the crash to discover its causes. A number of politicians were disgraced, and people found to have profited unlawfully from the company had assets confiscated proportionate to their gains (most had already been rich men and remained so). The company was restructured and continued to operate for more than a century after the Bubble. The headquarters were in Threadneedle Street at the centre of the financial district in London. At the time of these events the Bank of England also was a private company dealing in national debt, and the crash of its rival consolidated its position as banker to the British government..
Views: 4 wikipedia tts
England: South Sea Bubble - Lies - Extra History
 
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Support us on Patreon! http://bit.ly/EHPatreon Watch the South Sea Bubble series! http://bit.ly/1xfVN9W Subscribe for new episodes every other Saturday! http://bit.ly/SubToEC Follow us on Facebook! http://bit.ly/ECFBPage Follow us on Twitter! http://bit.ly/ECTweet Follow us on Twitch! http://bit.y/ECTwitch ____________ No historian is perfect, so it's important we acknowledge our mistakes where we find them (with the help of our viewers, no less)! After we clear up some discrepancies that emerged during the South Sea Bubble series, we turn to answering some common questions that came up during this series on economic history. In a period where financial masterminds like John Blunt engaged in trickery meant to confuse other people and hide his real activities, it's no wonder that many viewers had questions about what insider trading is and how Blunt could endlessly inflate stock prices for his unprofitable company. This is a history show, but we do our best to explain! As a bonus, James also reads Robert Knight's letter to Parliament on the eve of his illegal flight and tells some cool stories about Robert "It was Me" Walpole. ___________ BONUS! Britain Pays Off the South Sea Company Debt: http://nyti.ms/1Qsc1Yf ____________ Get the intro music here! http://bit.ly/1EQA5N7 *Music by Demetori: http://bit.ly/1AaJG4H Listen to the outro music here! http://bit.ly/1ERCS9G __________ Extra History - Sengoku Jidai: Warring States Japan Battle of Okehazama: http://bit.ly/1IUpYw2 Extra Credits - How High Costs Drive Players Away from F2P Games Free to Play is Currently Broken: http://bit.ly/1BzgbnY
Views: 393644 Extra Credits
Random Walk Down Wall Street: South Seas Bubble
 
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For Economics www.saseassociates.com Gordon Gecko and Bretton James in "Wall Street: Money Never Sleeps" probably learned their their craft from these con-artists with high political ties.
Views: 4389 plumstreetmusic
الأزمة الإقتصادية : فقاعة بحر الجنوب The South Sea Bubble
 
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Created by VideoShow:http://videoshowapp.com/free
Views: 93 Mohammed Saemdahr
Reinterpreting the First Great Stock Market Crash: South Sea, Mississippi & Windhandel Bubbles
 
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The greatest stock market bubble in history still holds lessons for today. Drawing from his financial research and objects from Yale collections, Professor William Goetzmann, Edwin J. Beinecke Professor of Finance and Management Studies, discusses the finance, art, and culture of the global capital in 1720 and their parallels to the modern era during his lecture at the 2013 Yale Presidential Inauguration Symposium on Friday, October 11, 2013.
Views: 10119 YaleUniversity
THE SOUTH SEA TRADING COMPANY
 
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THE SOUTH SEA TRADING COMPANY - MANDELA EFFECT (SOUTH SEA BUBBLE 1720)
Views: 144 RECALL VECTOR
The South Sea Company - Tyrannical Satanical
 
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A track from The South Sea Company album - I represent a nation of underachievers.
Views: 52 Frooki Music
SOUTH SEA BUBBLE by Charles Mackay - The South Sea Bubble from Popular Delusions
 
01:48:56
South Sea Bubble by Charles Mackay. The South Sea Bubble from Popular Delusions and the Madness of Crowds - non fiction audiobook. The South Sea Company 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 was also granted a monopoly to trade with South America, hence its name. At the time it was created, Britain was involved in the War of the Spanish Succession and Spain controlled South America. There was no realistic prospect that trade would take place and the company never realised any significant profit from its monopoly. Company stock rose greatly in value as it expanded its operations dealing in government debt, peaking in 1720 before collapsing to little above its original flotation price; this became known as the South Sea Bubble. A considerable number of persons were ruined by the share collapse, and the national economy greatly reduced as a result. The founders of the scheme engaged in insider trading, using their advance knowledge of when national debt was to be consolidated to make large profits from purchasing debt in advance. Huge bribes were given to politicians to support the Acts of Parliament necessary for the scheme. Company money was used to deal in its own shares, and selected individuals purchasing shares were given loans backed by those same shares to spend on purchasing more shares. The expectation of vast wealth from trade with South America was used to encourage the public to purchase shares, despite the limited likelihood this would ever happen. The only significant trade that did take place was in slaves, but the company failed to manage this profitably. A parliamentary enquiry was held after the crash to discover its causes. A number of politicians were disgraced and persons found to have profited unlawfully from the company had assets confiscated proportionately to their gains. The company was restructured and continued to operate for more than a century after the Bubble. The headquarters were in Threadneedle Street at the centre of the financial district in London, in which street today can be found the Bank of England. The Bubble Act 1720, which forbade the creation of joint-stock companies without royal charter, was promoted by the South Sea company itself before its collapse. This was an effort to prevent the increasing competition for investors, which it saw from companies springing up around it. (Adapted from Wikipedia) Time Chapter 0:00:00 Part 1 0:46:08 Part 2 1:17:03 Part 3 Read by hefyd.
Views: 4621 Fab Audio Books
England: South Sea Bubble - Buying Out Britain - Extra History - #3
 
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Support us on Patreon! http://bit.ly/EHPatreon Watch the South Sea Bubble series! http://bit.ly/1xfVN9W Subscribe for new episodes every other Saturday! http://bit.ly/SubToEC Follow us on Facebook! http://bit.ly/ECFBPage Follow us on Twitter! http://bit.ly/ECTweet Follow us on Twitch! http://bit.y/ECTwitch ____________ The time has come for Blunt to enact the final act of his scheme: taking on the 31 million pound British debt. When Parliament initially balks at transferring responsibility for that much money to Blunt's insolvent South Sea Company, he bribes them with special deals on his own stock. Despite a legal clause that should have locked the stock price until the company began paying off the debt, Blunt keeps introducing new plans to inflate the stock price and pocket the money for himself. He does everything from selling stocks on layaway to loaning people money so they could buy more stocks from him, creating an artificial demand for South Sea Company stock that drives the company's worth up to 300 million pounds: a staggering ten times the initial value of the already stunning debt it had assumed. His success, founded entirely on speculation with no actual revenue from trade, not only starves out other businesses across Britain but exceeds the total amount of money in the country's entire economy. This bubble can not last. ___________ Get the intro music here! http://bit.ly/1EQA5N7 *Music by Demetori: http://bit.ly/1AaJG4H Listen to the outro music here! http://bit.ly/1ERCS9G __________ James Recommends - City Building Games Across the Ages Anno Series (Dawn of Discovery): http://bit.ly/18mJxPg Extra Credits - How High Costs Drive Players Away from F2P Games Free to Play is Currently Broken: http://bit.ly/1AobnQV
Views: 1037062 Extra Credits
England: South Sea Bubble - The Bubble Pops - Extra History - #4
 
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Support us on Patreon! http://bit.ly/EHPatreon Watch the South Sea Bubble series! http://bit.ly/1xfVN9W Subscribe for new episodes every other Saturday! http://bit.ly/SubToEC Follow us on Facebook! http://bit.ly/ECFBPage Follow us on Twitter! http://bit.ly/ECTweet Follow us on Twitch! http://bit.y/ECTwitch ____________ With the South Sea Company's value dangerously inflated, Blunt drives one more scheme to raise stock prices - and it finally backfires on him. Early investors (including the famous politician Robert Walpole) seize the opportunity to sell their stock while the value is high, and the general public finally realizes that the South Sea Company has no actual worth. Everyone who didn't sell their stock in the first round finds themselves suddenly bankrupt as the stock value plummets. Even King George, on vacation when disaster strikes, loses a large amount of the royal fortune. Robert Walpole, however, sees this as an opportunity to make himself a hero of the public. Hiding his own involvement in the South Sea Swindle, he cancels all debts owed for the company's stock to help put its public investors back on their feet. Despite this, the public demands an inquiry and Walpole must walk a thin line between his facade as defender of the people and the reality of his, his party, and the King's blatant corruption. ____________ Get the intro music here! http://bit.ly/1EQA5N7 *Music by Demetori: http://bit.ly/1AaJG4H Listen to the outro music here! http://bit.ly/1ERCS9G __________ Extra History - Rome: The Punic Wars I The First Punic War: http://bit.ly/ExtraHistory Extra Credits - What the Future Really Holds for Games Four Realistic Predictions: http://bit.ly/1Dr7jp9
Views: 939781 Extra Credits
The South Sea Bubble: History's First Stock Market Bubble - Bad Ideas #59
 
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In 1720 a rash of market speculation (or stock-jobbing as it was called at the time) swept through England. Everyone, it seemed was desperate to get their hands on stock in The South Seas Company. Within the span of a year the bubble had rapidly expanded and even more rapidly burst. But what was The South Sea Company, what caused the bubble, and what does any of it have to do with Louisiana? All these questions and more are answered in this episode of Bad Ideas! || More Human Echoes stuff: http://humanechoes.com || Become a member for BONUS PODCASTS: http://bit.ly/1NkSWnQ || Patreon: https://www.patreon.com/HumanEchoes Bad Ideas Podcast on iTunes: http://apple.co/2yrDfyx Buy some T-shirts: http://bit.ly/1NetNNP Follow us on Mixer for all of our live streams: https://Mixer.com/HumanEchoes Listen to Bad Ideas: https://youtu.be/8RDb6jlY_4A Watch Dirt Block: https://youtu.be/MfdHU-E_N70 Watch Dwarf Fortress: https://youtu.be/H2KR9Ny4iy8 You can also follow the Human Echoes Peeps on Twitter! @HumanEchoes @tsouthcotte @albert_berg @josephdevon @ManicPix
Views: 78 Human Echoes
South Sea Bubble, font 6a, Rothley
 
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A pleasant little warmup at Rothley
Views: 93 NEVertigo
CCGL9030 South Sea and Mississippi Bubbles
 
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This is our group project video of CCGL9030. We mainly focus on South Sea and Mississippi Bubbles.
Views: 168 Darren Gu
Top 5 Most Bizarre Bubbles in History...
 
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If you ever thought financial bubbles are fascinating and wondered what types of bubbles have occurred through out history, this video will show you the top 5 and teach what exactly happened... Number 1: The Tulip Bubble Number 2: The South Sea Bubble Number 3: The Mississippi Bubble Number 4: The Dot com Bubble Number 5: The United States Housing Bubble My music | http://burnwater.bandcamp.com
Views: 1918 New Wall St.
England: South Sea Bubble - It Was Walpole - Extra History - #5
 
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Support us on Patreon! http://bit.ly/EHPatreon Watch the South Sea Bubble series! http://bit.ly/1xfVN9W Subscribe for new episodes every other Saturday! http://bit.ly/SubToEC Follow us on Facebook! http://bit.ly/ECFBPage Follow us on Twitter! http://bit.ly/ECTweet Follow us on Twitch! http://bit.y/ECTwitch ____________ Robert Walpole's attempts to use the South Sea Company scandal to enhance his own ambitions are threatened by the appearance of Robert Knight, a former South Sea employee whose records of corporate bribery implicate Walpole and his friends in Parliament. But faced with threats of retribution if he ever shares these records, Knight flees the country rather than face a public inquiry. Although he gets caught and sent to prison in Antwerp, Walpole deftly engineers his release and escape. With Knight finally gone, Walpole teams up with John Blunt to pin the blame for the South Sea stock bubble on his political opponents, conveniently clearing the way for himself to become essentially the first Prime Minister of England. He also makes sure that all of his own supporters get off easy (if not scot free) for their involvement, and even Blunt walks away from the South Sea Bubble with more money than he started with. ____________ Get the intro music here! http://bit.ly/1EQA5N7 *Music by Demetori: http://bit.ly/1AaJG4H Listen to the outro music here! http://bit.ly/1ERCS9G __________ Extra History - World War I: The Seminal Tragedy The Concert of Europe: http://bit.ly/1pGHnQA Extra Credits - How to Manage Inflation in Virtual Economies MMO Economies: http://bit.ly/1PvIHje
Views: 940154 Extra Credits
South Sea Company Prospectus Live: Truck Festival 2002
 
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South Sea Company Prospectus live on the Truck stage at Truck Festival 2002 featuring Richard Walters
Views: 274 Quickfix Recordings
The South Sea Bubble of 1720 / Helen J. Paul (University of Southampton)
 
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"Wagnisse": Ringvorlesung des Historischen Instituts im Wintersemester 2015/16 - 25.11.2015
Views: 847 UDEchannel
THE SOUTH SEA BUBBLE-Stock Company Fraud That Ended In Disaster
 
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The South Sea Company (SSC) was founded in 1711 to do trading with South America and it came to be known as one of the biggest frauds in history. It was doomed to fail from the beginning, but desperation and greediness knows no limits. Due to the ties the SSC had to the government, people believed it to be fully legit but alas they were wrong.
Tulip Mania | 3 Minute History
 
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If anyone thinks I should cover a topic please feel free to send a script - [email protected] Thanks to Xios, Alan Haskayne, Lachlan Lindenmayer, William Crabb, Derpvic, Seth Reeves and all my other Patrons. If you want to help out - https://www.patreon.com/Jabzy?ty=h And thanks for the 14,000 subs
Views: 134619 Jabzy
SOUTH SEA BUBBLE by Charles Mackay - The South Sea Bubble from Popular Delusions
 
01:48:56
South Sea Bubble by Charles Mackay. The South Sea Bubble from Popular Delusions and the Madness of Crowds - non fiction audiobook. The South Sea Company 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 was also granted a monopoly to trade with South America, hence its name. At the time it was created, Britain was involved in the War of the Spanish Succession and Spain controlled South America. There was no realistic prospect that trade would take place and the company never realised any significant profit from its monopoly. Company stock rose greatly in value as it expanded its operations dealing in government debt, peaking in 1720 before collapsing to little above its original flotation price; this became known as the South Sea Bubble. A considerable number of persons were ruined by the share collapse, and the national economy greatly reduced as a result. The founders of the scheme engaged in insider trading, using their advance knowledge of when national debt was to be consolidated to make large profits from purchasing debt in advance. Huge bribes were given to politicians to support the Acts of Parliament necessary for the scheme. Company money was used to deal in its own shares, and selected individuals purchasing shares were given loans backed by those same shares to spend on purchasing more shares. The expectation of vast wealth from trade with South America was used to encourage the public to purchase shares, despite the limited likelihood this would ever happen. The only significant trade that did take place was in slaves, but the company failed to manage this profitably. A parliamentary enquiry was held after the crash to discover its causes. A number of politicians were disgraced and persons found to have profited unlawfully from the company had assets confiscated proportionately to their gains. The company was restructured and continued to operate for more than a century after the Bubble. The headquarters were in Threadneedle Street at the centre of the financial district in London, in which street today can be found the Bank of England. The Bubble Act 1720, which forbade the creation of joint-stock companies without royal charter, was promoted by the South Sea company itself before its collapse. This was an effort to prevent the increasing competition for investors, which it saw from companies springing up around it. (Adapted from Wikipedia) Time Chapter 0:00:00 Part 1 0:46:08 Part 2 1:17:03 Part 3 Read by hefyd.
Views: 49 anjh Quacha
The South Sea Bubble and the Madness of Central Bankers
 
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In this video I talk about the South Sea Company and the bubble of 1721 and compare it to our present day Central Banker induced fiat money bubble. Donations: bitcoin https://blockchain.info/address/14DUCdB6ZPP3su12VeN1BxWgvMHjAVZJSH paypal.me/maneco64 @maneco64 www.patreon.com
Views: 1522 maneco64
Bubble Markets: The Endnotes
 
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Early stock markets, tulips, and the South Sea Bubble. Image credits: https://commons.wikimedia.org/wiki/File:ONL_(1887)_1.472_-_Jonathan%27s.jpg https://commons.wikimedia.org/wiki/File:Flag_of_the_Dutch_East_India_Company.svg https://commons.wikimedia.org/wiki/File:50-Cent-Signo-del-Zodiaco-Cancer-2.jpg https://pixabay.com/en/tulips-tulip-bed-colorful-color-52126/ https://pixabay.com/en/tulip-flower-spring-pink-tulips-328428/ https://commons.wikimedia.org/wiki/File:Jan_Brueghel_the_Younger,_Satire_on_Tulip_Mania,_c._1640.jpg https://commons.wikimedia.org/wiki/File:Jean-L%C3%A9on_G%C3%A9r%C3%B4me_-_The_Tulip_Folly_-_Walters_372612.jpg https://commons.wikimedia.org/wiki/File:South_Sea_Bubble.jpg https://commons.wikimedia.org/wiki/File:South-sea-bubble-chart.png Thank you to all our Patreon supporters! Please check out our Patreon: https://www.patreon.com/TheEndlessKnot Endless Knot merchandise can be found in our store: http://www.cafepress.ca/endlessknot Website: http://www.alliterative.net/ Blog: http://www.alliterative.net/blog Twitter: https://twitter.com/alliterative Facebook: https://www.facebook.com/alliterativeendlessknot Google Plus: https://plus.google.com/115113245513532543153/about Tumbler: http://alliterative-endlessknot.tumblr.com/ SoundCloud: https://soundcloud.com/alliterative Podcast: http://www.alliterative.net/podcast or https://itunes.apple.com/ca/podcast/endless-knot-podcast-endless/id1016322923?mt=2 Click here to sign up for our video email list, to be notified when new videos are posted: http://eepurl.com/6YuJv Click here to sign up for our podcast email list, to be notified when new podcast episodes go up: http://eepurl.com/btmBZT Transcript: Welcome to the Endnotes, where I put all the fun facts I can’t fit into the main videos! Today, some extra bits of information from my videos about the word Average and the history of insurance — and if you haven’t seen those yet, click on the card. In my series on “Average” I covered the origins of the insurance industry, and along the way I mentioned that the first English stockmarket started around the same time as insurance markets—in the late 17th century. But that wasn’t the world’s first stockmarket—that was established in Amsterdam in 1602 by the Dutch East India Company. And so in this video I’m going to briefly look at a couple of the consequences of that market. With all the money coming in from the Dutch East India Company, there was a lot of money to go around in the Netherlands. And when people start getting rich, inevitably they want to have status symbols. The status symbol in this case was the Tulip which had arrived in Europe by way of Turkey, so another contribution from the Islamic world to Europe. The name itself is also from Turkish (so this time not Arabic in origin). The word tulip is etymologically related to the word turban, from the notion that the flower’s shape resembles a turban. Turkish tülbent “turban” comes in turn from Persian dulband “turban”. So the tulip became very popular in the Netherlands in the 1630s, and because the tulip bulbs took a long time to produce, demand outstripped supply, and the price of the tulip shot up. Soon enough people began to buy tulips not to plant them but as an investment, hoping to sell them on for profit, and eventually this began to happen on paper only as contracts, what we would now call futures contracts, with tulip bulbs and actual money rarely passing between them. As with all market bubbles, the high prices eventually collapsed, but this in fact seems to be the first example of a market bubble. And then, back in England in the early 18th century, we see the first instance of market manipulation. The South Sea Company was created in a scheme to consolidate and reduce the cost of national debt. The company was granted a trade monopoly with South America, but the founders of the company themselves had no actual belief or intention that anything would come of this monopoly—it was, indeed, an out-and-out fraud! Nevertheless, people were seduced by the company’s promises and the idea of getting rich off trading with the exotic new world, and the stock price soared before inevitably crashing. Many were ruined by the collapse and many were implicated in the scheme, but ultimately the event led to the Bubble Act passed by British Parliament which forbade the formation of any other joint-stock companies unless approved by royal charter. As always, you can hear even more etymology and history, as well as interviews with a wide range of fascinating people, on the Endless Knot Podcast, available on all the major podcast platforms as well as our other YouTube channel. Thanks for watching!
Views: 489 Alliterative
Tulip Mania: The First Economic Bubble
 
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In the 17th century single tulips were traded for amounts of money worth canal houses in Amsterdam. This video explains how this happened and why tulips of all things were the centrepiece of this mania. -------------------------------------------------- With Ciceroni we seek to be a guide to European culture and history. We make videos on little known subjects as well as more ubiquitous ones, ranging from current affairs like the European Union, to historic events like the Tulip Mania, and even mythological stories like those of the Greek Gods. In all these videos we strive to present the subjects in a objective manner and within their complex context. Become a Patron: https://www.patreon.com/Ciceroni Follow us on Twitter: https://twitter.com/Ciceroni_EU Like us on Facebook: https://www.facebook.com/CiceroniChannel/
Views: 53889 Ciceroni
What makes financial bubbles burst? | The Economist
 
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Financial bubbles have popped up throughout modern history—from Dutch tulip mania to the more recent sub prime lending boom. Our cartoonist Kal illustrates what makes them burst. Click here to subscribe to The Economist on YouTube: http://econ.trib.al/rWl91R7 When the price of an asset rises faster than can be explained by economic fundamentals it creates a bubble. Famous bubbles include tulip mania in Holland during the 17th century, when the prices of tulips reached unheard-of levels and the South Sea Bubble in Britain a century later. Here speculators, which included a vast array of citizens including parliamentarians and the King's mistress, drove up the share price of the South Sea Trading Company with disastrous results. There have been many others since, including the dot-com bubble in internet company shares that burst in 2000 and the bubble in house prices which, when it burst in 2007, helped to trigger the recent global economic downturn. Economists argue whether bubbles are caused by the irrational behaviour of crowds, aided in part by savvy speculators, or are the result of misinformed consumers who assume the inflated prices are sensible. Whatever their cause, bubbles do not last forever and often end not with a pop but with a crash. Daily Watch: mind-stretching short films every day of the working week. For more from Economist Films visit: http://films.economist.com/ Check out The Economist’s full video catalogue: http://econ.st/20IehQk Like The Economist on Facebook: https://www.facebook.com/TheEconomist/ Follow The Economist on Twitter: https://twitter.com/theeconomist Follow us on Instagram: https://www.instagram.com/theeconomist/ Follow us on LINE: http://econ.st/1WXkOo6 Follow us on Medium: https://medium.com/@the_economist
Views: 55715 The Economist
The South Sea Company. Greenside
 
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The South Sea Company was a British joint stock company that traded in South America during the 18th century. Founded in 1711, the company was granted a monopoly to trade in Spain's South American colonies as part of a treaty during the War of Spanish Succession. In return, the company assumed the national debt England had incurred during the war. Speculation in the company's stock led to a great economic bubble known as the South Sea Bubble in 1720, which caused financial ruin for many. In spite of this it was restructured and continued to operate for more than a century after the Bubble. The headquarters were in Threadneedle Street.[1] www.reverbnation.com/label/recmusic
Views: 496 Ewan Rollo
What is an Asset Bubble?
 
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Welcome to the Investors Trading Academy talking glossary of financial terms and events. Our word of the day is “Asset Bubble” The term 'bubble' refers to an episode where the price of a financial asset rises significantly, often in response to speculation, which results in the asset trading at a substantial premium to its intrinsic value. When the bubble bursts, the price of the financial asset falls sharply leaving investors with reduced wealth. When the prices of securities or other assets rise so sharply and at such a sustained rate that they exceed valuations justified by fundamentals, making a sudden collapse likely - at which point the bubble "bursts". This may impact discretionary spending and hinder economic growth. Central banks attempt to keep an eye on asset price appreciation and take measures to curb high levels of speculative activity which may make prices vulnerable to a sudden correction. The term 'bubble' was first used in 1720 in reference to the South Sea Bubble Crisis and more recently has been applied to Japan in the 1980s and even 'dot-com' companies in the late 1990s. By Barry Norman, Investors Trading Academy - ITA
What is a Bubble?
 
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Welcome to the Investors Trading Academy talking glossary of financial terms and events. Our word of the day is “Bubble” A Bubble begins when the price of an asset rises far higher than can be explained by fundamentals, such as the income likely to derive from holding the asset. The Chicago Tribune of April 13th 1890, writing about the then mania in real-estate prices, described "men who bought property at prices they knew perfectly well were fictitious, but who were prepared to pay such prices simply because they knew that some still greater fool could be depended on to take the property off their hands and leave them with a profit". Such behavior is a feature of all bubbles. Famous bubbles include tulip mania in Holland during the 17th century, when the prices of tulip bulbs reached unheard of levels, and the South Sea Bubble in Britain a century later, although there have been many others since, including the dotcom bubble in internet company shares that burst in 2000. Economists argue about whether bubbles are the result of irrational crowd behavior perhaps coupled with exploitation of the gullible masses by some savvy speculators or, instead, are the result of rational decisions by people who have only limited information about the fundamental value of an asset and thus for whom it may be quite sensible to assume the market price is sound. Whatever their cause, bubbles do not last forever and often end not with a pop but with a crash. By Barry Norman, Investors Trading Academy - ITA
MISSISSIPPI BUBBLE - The Mississippi Scheme by Charles Mackay - Non fiction - ECONOMICS
 
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The Mississippi Bubble by Charles Mackay - Non fiction - ECONOMICS AUDIOBOOK The Mississippi Company of 1684 became the Company of the West in 1717, and expanded as the Company of the Indies from 1719. This corporation, which held a business monopoly in French colonies in North America and the West Indies, became one of the earliest examples of an economic bubble. In May 1716, the Banque Générale Privée ("General Private Bank"), which developed the use of paper money, was set up by convicted murderer and millionaire gambler John Law. It was a private bank, but three quarters of the capital consisted of government bills and government-accepted notes. In August 1717, he bought the Mississippi Company to help the French colony in Louisiana. In the same year Law conceived a joint stock trading company called the Compagnie d'Occident (or, The Mississippi Company). Law was named the Chief Director of this new company, which was granted a trade monopoly of the West Indies and North America by the French government. The bank became the Banque Royale (Royal Bank) in 1718, meaning the notes were guaranteed by the king, Louis XV of France. The Company absorbed the Compagnie des Indes Orientales, Compagnie de Chine, and other rival trading companies and became the Compagnie Perpetuelle des Indes on 23 May 1719 with a monopoly of commerce on all the seas. Simultaneously, the bank began issuing more notes than it could represent in coinage; this led to an economic inflation, which was eventually followed by a bank run when the value of the new paper currency was halved. The Mississippi Bubble itself. Law exaggerated the wealth of Louisiana with an effective marketing scheme, which led to wild speculation on the shares of the company in 1719. The scheme promised success for the Mississippi Company by combining investor fervour and the wealth of its Louisiana prospects into a sustainable joint-trading company. The popularity of company shares were such that they sparked a need for more paper bank-notes, and when shares generated profits the investors were paid out in paper bank notes. In 1720, the bank and company were united and Law was appointed by Philippe II, Duke of Orleans, then Regent for Louis XV, to be Comptroller General of Finances to attract capital. Law's pioneering note-issuing bank thrived until the French government was forced to admit that the number of paper notes being issued by the Banque Royale were not equal to the amount of metal coinage it held. The "bubble" burst at the end of 1720, when opponents of the financier attempted to convert their notes into specie en masse, forcing the bank to stop payment on its paper notes. By the end of 1720 Philippe d'Orléans, regent of France for Louis XV, had dismissed Law from his positions. Law then fled France for Venice. (Adapted from Wikipedia) Time Chapter Reader 0:00:00 The Mississippi Scheme Part 1 ink tree 0:30:36 The Mississippi Scheme Part 2 MorganScorpion 1:01:37 The Mississippi Scheme Part 3 MorganScorpion Sourced from Librivox
Views: 2846 Fab Audio Books
First Opium War - Trade Deficits and the Macartney Embassy - Extra History - #1
 
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The British Empire's grasp on the Americas was slipping right at the time when they needed those resources most. The massive amounts of tea they imported from China had created a huge trade deficit, but the Chinese were reluctant to let any Europeans trade outside of the Canton port strictly controlled by the Hong. So Britain sent a formal embassy led by Earl George Macartney. Support us on Patreon! http://bit.ly/EHPatreon --- (Episode details below) Grab your Extra Credits gear at the store! http://bit.ly/ExtraStore Subscribe for new episodes every Saturday! http://bit.ly/SubToEC Learn about the disastrous Macartney Embassy that tried and failed to improve British trade relations with China: http://bit.ly/28Ro4B1 Play games with us on Extra Play! http://bit.ly/WatchEXP Talk to us on Twitter (@ExtraCreditz): http://bit.ly/ECTweet Follow us on Facebook: http://bit.ly/ECFBPage Get our list of recommended games on Steam: http://bit.ly/ECCurator ____________ In 1792, Great Britain had just come out of an expensive war that cost them their control over many of their colonies in North America. Other wars had also cost them their access to the silver mines of South America, which had been helping fund so much of their trade with the Qing Dynasty of China. European traders all wanted greater access to China, but the Emperor was wary of letting outsiders too far into his country and kept them all penned up at the port of Canton, which was strictly regulated by the Hong business group. A flourishing blackmarket trade grew, but Britain wanted more. One trader, acting on his own initiative, grew bold enough to approach Beijing and attempt to get a hearing over his trade grievances, but the Chinese considered this a huge breach of protocal and an offense to the Emperor. Britain had to do something, however: they imported over 10 million pounds of tea each year, equal to 10% of the government's annual spending, and the fact that China did not have anywhere near as great an interest in British products meant that they were running an enormous trade deficit they could no longer sustain. The Crown appointed an official envoy, Earl George Macartney, with orders to end the Canton system, establish an embassy, and acquire rights to an island that would be under British control in the same way that the Porutuguese controlled Macao. The mission failed spectacularly. Although Macartney got permission to sail north and meet the Qianlong Emperor in his summer palace at Jehol, he refused to perform the traditional kowtow which was required upon meeting the Emperor. He presented gifts from the British court, but the Chinese interpreted these gifts as tribute, not trade enticements, and decided they had no need for nor interest in what he offered. Since he failed to get them to agree to any of his three requests, Britain wanted to find another way to address the trade imbalance with China. Soon, this would lead them to start bringing in opium. ____________ ♪ Get the intro music here! http://bit.ly/1EQA5N7 *Music by Demetori: http://bit.ly/1AaJG4H ♪ Get the outro music here! http://bit.ly/23isQfx *Music by Sean and Dean Kiner: http://bit.ly/1WdBhnm
Views: 2070523 Extra Credits
South Sea Company
 
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The South Sea Company (officially 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) was a British joint-stock company founded in 1711, created as a public-private partnership to consolidate and reduce the cost of national debt. - Video generated using Wikipedia data - Background music by www.bensound.com
Views: 50 Vikipedia
Video 14 Blowing Bubbles
 
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A professor of economics at MIT, Peter Temin, and a professor of economics at Barcelona, Hans Joachim Voth, had access to a remarkable archive. The Hoare Bank has been at its Fleet Street home since the late 17th century and they have their accounts dating back to their early days. The two professors analysed those records and wrote academic papers on what they found, and eventually published their findings in Prometheus Shackled in 2013. They say that there was an “explosion of debt” after the Glorious Revolution, and most of that debt was used to fight wars. By 1719 that debt was over £41 million, which was close to seven times the annual revenue from tax and customs duty. Half of that revenue was spent just on the interest payments of the debt. Much of those interest payments went to the Bank of England, which was founded soon after the 1688 Glorious Revolution, which saw William of Orange come over from Holland to replace his Uncle, James II. In 1694 William granted a charter to a newly-formed private company which called itself The Bank of England Company. The charter gave The Bank of England Company the monopoly right to create money for the British Government. So they created money (trust inscribed) and then loaned it to the Government. It doesn’t take a great brain to figure out that if the country’s money is all loaned to it and must be paid back, then ever-increasing debt in perpetuity is the logical and only possible outcome. The business started with a loan of £1.2 million (25 years later, in 1719, it was £41 million – nearly 40 times bigger) to the British Government, who agreed, on behalf of the nation, to repay the loan at 8 per cent interest plus a £4,000 annual service charge. The professors say that it “introduced some order into the process of gathering resources for the Government.” I would add that it also introduced a highly profitable business (or, if you want to get pedantic, a highly profitable confidence trick). You remember this from Video 7 when Professor Ferguson was talking about those breathtakingly clever Renaissance Italians, who conjured up this very same bond system that worked so well. Now the Government didn’t just owe money to the Bank of England. People had taken out annuities. They had loaned the Government money, and the Government agreed to pay 9 per cent on the loan annually until 1807. And the agreement was that the Government couldn’t buy back the annuity if the owner didn’t wish to sell. And with a secure investment that gives you 9 per cent for the next 90 years, who would want to sell it? According to Professors Temin and Voth “the South Sea scheme was an attempt to convert annuities into equity in a way that enticed debt holders to participate voluntarily.” And the ploy worked. Two out of three people did convert their annuities into South Sea shares. Remarkable because the professors say that the South Sea Company “did not run a flourishing commercial operation.” In fact, it was “a classic Ponzi scheme.” It was a con. And there is plenty of evidence that people were aware that it was a con. The fact that the South Sea Company’s business plan rested solely on exploiting the wealth of South America was obviously nonsense, as Daniel Defoe pointed out at the time: “Unless the Spaniards are to be divested of common sense, throwing away the only valuable stake they have left in the world, and in short, bent on their own ruin, we cannot suggest that they will ever, on any consideration, part with so valuable, indeed so inestimable a jewel, as the exclusive trade to their own plantations.” And of course, Britain was at war with Spain. As Professor Temin and Professor Voth say it was a classic Ponzi scheme. There were, of course, some important differences between Charles Ponzi’s scheme and that of the South Sea Company. Charles Ponzi was operating alone. When he was caught he did not have powerful allies in government and the law to save him. No big name economists were explaining that “whatever their culpability we should view their actions as a consequence of the excitement about investing opportunities and complacency about risks.” The South Sea Company had “the prominent involvement of leading ministers, the royal household (The Prince of Wales was Governor of the Company from 1715 and in 1718 he was replaced by his father George I; both these men had significant holdings in the company) and Members of Parliament.” And of course, the sophisticated investor, Richard Hoare, invested in the South Sea Company from its inception. So the professors ask “Why did the price of the South Sea Company move up so rapidly? Understanding the causes of major bubbles has been a challenge to financial economists and historians alike.” Well it maybe a challenge but it’s also rather important so we will take on the challenge in the next video. Click like - leave a comment - subscribe - watch the next video - thanks for watching this one.
Views: 12 Richard Walker
What is STOCK MARKET BUBBLE? What does STOCK MARKET BUBBLE mean? STOCK MARKET BUBBLE meaning
 
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What is STOCK MARKET BUBBLE? What does STOCK MARKET BUBBLE mean? STOCK MARKET BUBBLE meaning - STOCK MARKET BUBBLE definition - STOCK MARKET BUBBLE explanation. Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license. A stock market bubble is a type of economic bubble taking place in stock markets when market participants drive stock prices above their value in relation to some system of stock valuation. Behavioral finance theory attributes stock market bubbles to cognitive biases that lead to groupthink and herd behavior. Bubbles occur not only in real-world markets, with their inherent uncertainty and noise, but also in highly predictable experimental markets. In the laboratory, uncertainty is eliminated and calculating the expected returns should be a simple mathematical exercise, because participants are endowed with assets that are defined to have a finite lifespan and a known probability distribution of dividends. Other theoretical explanations of stock market bubbles have suggested that they are rational, intrinsic, and contagious. Two famous early stock market bubbles were the Mississippi Scheme in France and the South Sea bubble in England. Both bubbles came to an abrupt end in 1720, bankrupting thousands of unfortunate investors. Those stories, and many others, are recounted in Charles Mackay's 1841 popular account, "Extraordinary Popular Delusions and the Madness of Crowds". The two most famous bubbles of the twentieth century, the bubble in American stocks in the 1920s just before the Great Depression and the Dot-com bubble of the late 1990s were based on speculative activity surrounding the development of new technologies. The 1920s saw the widespread introduction of an amazing range of technological innovations including radio, automobiles, aviation and the deployment of electrical power grids. The 1990s was the decade when Internet and e-commerce technologies emerged. Other stock market bubbles of note include the Encilhamento occurred in Brazil during the late 1880s and early 1890s, the Nifty Fifty stocks in the early 1970s, Taiwanese stocks in 1987–89 and Japanese stocks in the late 1980s. Stock market bubbles frequently produce hot markets in initial public offerings, since investment bankers and their clients see opportunities to float new stock issues at inflated prices. These hot IPO markets misallocate investment funds to areas dictated by speculative trends, rather than to enterprises generating longstanding economic value. Typically when there is an over abundance of IPOs in a bubble market, a large portion of the IPO companies fail completely, never achieve what is promised to the investors, or can even be vehicles for fraud. Emotional and cognitive biases (see behavioral finance) seem to be the causes of bubbles, but often, when the phenomenon appears, pundits try to find a rationale, so as not to be against the crowd. Thus, sometimes, people will dismiss concerns about overpriced markets by citing a new economy where the old stock valuation rules may no longer apply. This type of thinking helps to further propagate the bubble whereby everyone is investing with the intent of finding a greater fool. Still, some analysts cite the wisdom of crowds and say that price movements really do reflect rational expectations of fundamental returns. Large traders become powerful enough to rock the boat, generating stock market bubbles.
Views: 1418 The Audiopedia
Africa: Zulu Empire - Shaka Zulu Becomes King - Extra History - #1
 
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Support us on Patreon! http://bit.ly/EHPatreon Watch the Zulu Empire series! http://bit.ly/1ITi98p Subscribe for new episodes every Saturday! http://bit.ly/SubToEC Follow us on Facebook! http://bit.ly/ECFBPage Follow us on Twitter! http://bit.ly/ECTweet Follow us on Twitch! http://bit.y/ECTwitch ____________ With no written records from the Zulus themselves, historians and anthropologists have pieced together their history from a smattering of sources. We first learn of the Zulu as a minor tribe of the Bantu people, living in South Africa. Shaka Zulu, the man who would organize them into an empire, was born the illegitimate son of a Zulu king. He was sent away with his mother Nandi to grow up in her tribe, the Langeni, but he eventually caught the attention of Dingiswayo, the leader of another powerful tribe called the Mtethwa. Appointed as the leader of a squadron called an ibutho, Shaka developed new tactics including a short "iklwa" fighting spear and a simple but effective military maneuever called "the Bull Horn." When his father died, Shaka - now a successful military leader - returned with Dingiswayo's backing to assassinate the rightful heir and assume control of his native tribe. Just a year later, though, the neighboring Ndwandwe tribe murdered Dingiswayo and Shaka vowed revenge on their leader, Zwide. He then launched a bloody war that, combined with the strains created by European colonization, led to the Mefacane, or the Crushing. ____________ Get the intro music here! http://bit.ly/1EQA5N7 *Music by Demetori: http://bit.ly/1AaJG4H Listen to the outro music here! http://bit.ly/1L6ihlE __________ Extra History - England: South Sea Bubble The Sharp Mind of John Blunt: http://bit.ly/1BFMKoc Extra Credits - Why Mechanics Must Be Both Good and Accurate Historical Games: http://bit.ly/1EKo1Nn
Views: 1679785 Extra Credits
SEPARATION OF OWNERSHIP AND CONTROL
 
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http://academlib.com/3779/management/separation_ownership_control#234 The advent of the stock market and the large-scale exchange of shares brought new complexities to corporate organizations. For example, in 1711, the South Sea Company, a British joint-stock company, came into existence. It assumed England's debt that had resulted from the War of Spanish Succession. In return, it was given a monopoly to trade in Spain's South American colonies. There was great speculation about the value of the company, and this speculation ultimately resulted in an economic bubble, the South Sea Bubble of 1720, which caused financial ruin for many. To control such speculation, the Parliament of Great Britain enacted the Bubble Act of 1720, forbidding all joint-stock companies not authorized by a royal charter. Throughout this process of corporate evolution, the nature of management shifted from "a fellowship of personal acquaintances to that of an impersonal collective."40 As ownership became increasingly distributed and diffused through shares changing hands in the stock market, the ownership and control of companies became separated. Logistics' considerations made it challenging for shareholders to deal directly with the intricate decisions involved in operating a multiproduct, multifunction, mass-production-based business operation. The inability of one person or shareholders to manage a complex organization gave rise to specialists. Capital budgeting, marketing, labor and personnel relations, production, engineering, and a number of other functions required the skills of specialists. With this division of labor, the decision-making authority became vested increasingly in career executives, professionals who had well-honed skills, but little ownership stake in the companies they managed. Diffused ownership was no longer in control, and the executives became arbitrators for the collective enterprise, allocating priorities among management, shareholders, creditors, suppliers, employees, competitors, consumers, regulators, and other interested segments of the society, such as local, regional, national, and international communities. This resulted in the broadening of corporate motivations and objectives.41 ...
Views: 2381 Academ Lib
Video 15 Ruthless manipulation
 
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Is it so difficult to understand why the price rose? The professors earlier in the chapter say that the.” When the first shares were issued at a bargain basement price it was the king, his son the Prince of Wales, members of the House of Lords, MPs, merchants, and of course bankers, including that sophisticated investor, Richard Hoare, who got in quickly. A lot of people buying a lot of shares means the share price will rise. Naturally, as Shakespeare said “What great ones do the less will prattle of” and so lesser people would naturally have been curious and their “growing interest coincided with an artificially restricted supply.” But fortunately as Professor Temin and Voth tell us the “South Sea Company also lent generously against its own shares." Professors Temin and Voth say that with each new issue of South Sea Company shares the price rose dramatically. And, perhaps most interestingly, they say that when the fourth and final issue of shares was made “merchants and bankers were largely absent. MPs and members of the House of Lords who had bought stock early in the game for more than £1 million now only took £77,000.” I can’t help feeling that they might have known something. This was a classic bubble which developed as all financial bubbles do. So it is difficult to understand Professor Shiller’s comment that “the path of a naturally occurring Ponzi scheme - if we may call speculative bubbles that - will be more irregular and less dramatic, since there is no direct manipulation.” There was intense and very direct manipulation by the insiders. As there has been in every one of the highly profitable subsequent financial bubbles, up to and including the bubble that inflated from 2001 to 2007. Through direct manipulation the market valuation grew until the South Sea Company was “approximately two times the value of all the land in Britain.” The professors follow that amazing statistic with this: “However, detecting bubbles is conceptually challenging.” It is difficult to see what is “conceptually challenging” about detecting a bubble that has taken place in a company whose value rose to the impossible height of “two times the value of all the land in Britain” especially considering “the South Sea Company’s lamentable trading record prior to 1719.” Well, it was not lamentable - it was non-existent, as the professors say early in the chapter: “In 1718 Spain seized the assets of the only ship that ever sailed.” And, they add, the slave trade “also failed to flourish.” Of course, it was a bubble and all bubbles are built on deceit; the easy credit offered by the shareholders and the fact that those shareholders, like Richard Hoare, could pump the market. “When Hoare’s bought, the market on average rose substantially. . . over ten days, to 14.7 per cent. . . These numbers are quite large - the ten-day performance, for example, implies an annual gain of 1686 per cent.” The result? “On November 27, 1721 it was time for the partners at Hoare’s Bank to take profits, Henry Hoare, the senior partner, had £21,000 transferred to his private account.” The partners earned “as much in 1720-21 by buying and selling stock as they had during the twenty years previous.” The professors end up making a very important observation. “The bank was most successful in trading the most volatile assets, suggesting that bubbles can be an important business opportunity for sophisticated investors. Hedge funds in the late 1990s showed a similar pattern.” Not exactly a major intellectual triumph. How can a hedge fund make profitable bets if prices don't move. And of course the more dramatic the rise and fall the bigger the profits. For the insiders that is. Well thank you for watching. Click like. Subscribe. Leave a comment and please watch video number 16 where we'll look at a little more of what professors Temin and Voth discovered and of course look again at Professor Shiller's carefully worked theory of bubbles.
Views: 11 Richard Walker
🇨🇳China Central Bank Just Injected RECORD Amount of Money Into Markets To Prevent COLLAPSE!
 
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LOOK THROUGH MY BOOKS! http://books.themoneygps.com SUPPORT MY WORK: https://www.patreon.com/themoneygps PAYPAL: https://goo.gl/L6VQg9 OTHER: http://themoneygps.com/donate ————————————————————————————————— MY FAVORITE BOOKS: http://themoneygps.com/books ————————————————————————————————— AUDIOBOOK: http://themoneygps.com/store STEEMIT: https://steemit.com/@themoneygps T-SHIRTS: http://merch.themoneygps.com ————————————————————————————————— Sources Used in This Video: https://goo.gl/YpU9nm ————————————————————————————————— #china #money #invest
Views: 34137 The Money GPS
CannTrust Holdings, International Cannabrands, Alan Brochstein - Midas Letter RAW 125
 
01:28:47
Midas Letter RAW highlights the stocks and stories to watch in the Canadian markets today. James West and Ed Milewski provide comprehensive fundamental & technical analysis on all trending business and investment news, while interviewing the top CEOs of all public companies and analysts with the highest reputations in the business. 0:00 - Macroeconomics and Cannabis Analysis with James & Ed -S&P just broke down -Venture keeps rolling over too -low from October has now been breached -ML Canadian Cannabis Index intraday chart: -matter of saturation - only so much money will come into a space 6:50 - Midas Letter News -Tilray (NASDAQ:TLRY) deal with LiveWell for oil -Origin House, formerly CannaRoyalty Corp (CNSX:OH); 99% of OH warrants exercised -Namaste (CVE:N) entered into a share purchase agreement with Pineapple Express; Namaste will own 49% of company 8:44 - Macroeconomics and Cannabis Analysis with James & Ed -Malaysia filed criminal charges against Goldman Sachs -STATES Act has bill amended to it; amendment allows states where cannabis is legal to allow cannabis companies to access banking industry -look at major Canadian indexes; Aurora down almost 4.5% 14:55 - CannTrust Holdings Inc (TSE:TRST) (OTCMKTS:CNTTF) (FRA:C9S) CEO Peter Aceto discusses the company’s Q3 revenues and addresses concerns about CannTrust’s expansion plans in Pelham, Ontario. 27:16 - Microeconomics and Cannabis Analysis with James & Ed -NY Governor Andrew Cuomo announced plans to make recreational cannabis legal 31:54 - Trivia: How much does it cost to list on the TSX today? B) $500,000-$1M 33:02 - International Cannabrands Inc (CNSX:JUJU) (OTCMKTS:GEATF) (FRA:31G) CEO Steve Gormley provides an update on the company’s operations. Gormley suggests that as a brand aggregator, International Cannabrands isn’t focused on share price, but on profitability. 44:14 - Video - Stash Your Stash: what happens when your pet consumes your cannabis? Sean Cookson has more. 47:39 - Macroeconomics and Cannabis with James & Ed -audience questions -International Cannabrands review -Ed: difficult to get excited about this market -caution: companies shedding more than half their highs 58:44 - 420Investor and New Cannabis Ventures Founder Alan Brochstein, CFA shares his views on why new cannabis issuers have performed dismally this fall. 1:13:04 - Macroeconomics and Cannabis Analysis with James & Ed -S&P chart -when asset prices collapse, it's about having the staying power to leave your money there and wait for the prices to return -Canopy Growth (TSE:WEED) chart: new low -Acreage (CNSX:ACRG.U) making new lows as well (down to $15; has lost 40% of value) -South Sea Bubble -Ed: exponential moves end badly -gold Body and Mind (CNSX:BAMM) up 7 percent; not rallying, just sort of getting comfortable at a lower level Aphria's (TSE:APHA) seen its best volume in the past 10 days; smart money going in? Or going out? -Heritage Cannabis (CNSX:CANN) chart: 5 attempts to get higher ($0.35); established new lower trend Tuesday: Charting Man Dan, Heritage Cannabis Clint Sharples ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #TechnicalAnalysis #MidasLetter
Views: 2504 Midas Letter
The Bubble that No One is Talking About
 
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Hey, stock market fans, traders and investor enthusiasts! It's me, Jerremy! Thanks for watching the above video. In the video I reference some advanced analysis techniques called Fibonacci and Elliott Wave. To get those videos, click the below links. Fibs: https://www.youtube.com/watch?v=9M69cS9TC1M Waves: https://www.youtube.com/watch?v=dXEG3KI6090 Here's the site I used to chart the KSE 100. http://www.investing.com/indices/karachi-100-chart Here's the website Indi advised I check out in the video: http://www.tradingeconomics.com/pakistan/indicators I hope you enjoy this video. Let me know if you have any questions!
Views: 1188 Real Life Trading

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