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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: 1891170 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: 10231 Video Economist
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: 907 BBC Podcasts
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: 1346672 Extra Credits
SOUTH SEA BUBBLE by Charles Mackay - The South Sea Bubble from Popular Delusions
 
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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: 5009 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: 1225889 Extra Credits
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: 7047 One Minute Economics
Betting on the Bulbs
 
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From the award-winning immersive film project, Econ in Motion, Betting on the Bulbs is the second short documentary. Adapted from an academic paper by Dr. David Thomas and Dr. Jim McClure from BSU (a paper that was recently published in the Oxford Journal), this film encapsulates the time period fully. It's 17th century Northern Europe, and the newly free United Provinces of Holland is getting richer and richer. Once the upper-class trading of prized tulips is adopted by the middle class and monetized, the clock begins ticking for what would eventually explode in disaster in 1637. This film explores that exciting moment in history while trying to find an economic answer to what created the problem in the first place. Dir. - Devon M. Roddel Asst. Dir. - Mark-Kate Riehle D.o.P. - Ryan Shank Asst. Prod. - Max Harp
Views: 17033 Econ in Motion
الأزمة الإقتصادية : فقاعة بحر الجنوب The South Sea Bubble
 
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Created by VideoShow:http://videoshowapp.com/free
Views: 109 Mohammed Saemdahr
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: 422922 Extra Credits
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: 61149 Ciceroni
THE SOUTH SEA TRADING COMPANY
 
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THE SOUTH SEA TRADING COMPANY - MANDELA EFFECT (SOUTH SEA BUBBLE 1720)
Views: 176 RECALL VECTOR
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: 10910 YaleUniversity
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: 57 Frooki Music
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: 500 Ewan Rollo
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: 24 wikipedia tts
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: 1103966 Extra Credits
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: 1102931 Extra Credits
SOUTH SEA BUBBLE by Charles Mackay The South Sea Bubble from Popular Delusions
 
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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. Part 1 of Memoirs of Extraordinary Popular Delusions and the Madness of Crowds Volume 1 by Charles MACKAY (1812 - 1889). Complete unabridged audiobook The book chronicles and vilifies its.
Views: 16 Sydney Mariela
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: 4415 plumstreetmusic
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: 971 UDEchannel
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: 121 Human Echoes
TULIP MANIA - A CLASSIC MARKET BUBBLE [Financial Markets History #5]
 
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To understand market bubbles, a good place to start is with 'Tulip Mania' a classic market bubble from the 17th century. This is arguably the first documented speculative market bubble. By going through this event, we can understand the simple mechanics of this type of euphoric speculative boom and subsequent crash. ▶️ This is episode 5 of our series on the history of the financial markets. It follows on from previous episodes, so we recommend watching the previous videos first. https://www.youtube.com/playlist?list=PLnLi8MK-orCGztTS9xKtKm4XINcfqVqJs Presented by Nicholas Puri - - - - - - - - - - 🔥 Subscribe to The Duomo Initiative 🔥 Free lessons and insights about trading, investing, economics and more. http://bit.ly/SubscribetoDuomo - - - - - - - - - - 📈 Learning to trade? Join our FREE course & learn the foundations of our method. 📈 http://bit.ly/FreeDuomoTradingCourse Featuring 10 easy-to-follow lessons, interactive activities, quizzes and more! - - - - - - - - - - 🗣️ Want more daily trading support? Our FREE Market Selection Service has you covered 🗣️ http://bit.ly/MarketSelection You’ll receive a short video at the start of our trading session, explaining which market we’re following and why. - - - - - - - - - - 💡 The Duomo Initiative provides engaging and straight-forward financial lessons and courses through our online school. Find out more at http://bit.ly/DuomoSchoolTrading 💡 ▶︎ Instagram: https://instagram.com/duomoinitiative ▶︎ Twitter: https://twitter.com/duomoinitiative ▶︎ Facebook: https://www.facebook.com/duomoinitiative ▶︎ Podcast: https://podcasts.apple.com/sk/podcast/the-duomo-trading-podcast/ (available on most major podcast platforms). #TulipMania #FinancialMarkets #History
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: 59 Vikipedia
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: 1555 maneco64
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: 56575 The Economist
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: 2658 Ivan Rogachyov
A South Sea Story
 
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Current Events Relative to History
Views: 1988 anderdw
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
Chinese Admiral (July 15, 2019) : Solve South China Sea Dispute By Sinking US Aircraft Carriers
 
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Rear Admiral Lou Yuan, deputy head of the Chinese Academy of Military Sciences, has told an audience in Shenzhen that the ongoing disputes over the ownership of the East and South China Seas could be resolved by sinking two U.S. Navy aircraft carriers. Admiral Lou gave a wide-ranging speech on the state of Sino-U.S. relations. As reported by New Zealand Herald, the high-profile, hawkish military commentator reportedly declared the current trade spat was “definitely not simply friction over economics and trade,” but was instead a “prime strategic issue”. His speech, delivered on Dec. 20 to the 2018 Military Industry List summit, declared that China’s new and highly capable anti-ship ballistic and cruise missiles were more than capable of hitting U.S. Navy carriers, despite them being at the centre of a ‘bubble’ of defensive escorts. Read More : https://bit.ly/2JHrjvT
Views: 27917 US Defense Line
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
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: 507 Alliterative
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: 3103 Fab Audio Books
RARE metal detector find - South Sea Company George 1st Sixpence Circa 1723
 
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Thursday 28th September 2018 - couple of hours in the afternoon this South Sea Company George 1st 1723 sixpence dug up after 200 years in the ground. If you like my footage put a like or subscribe. Thanks for watching
Views: 30 Darren Parsley
Episode 24 - Learning to Love Investment Bubbles
 
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To see links or read the transcript of the episode, visit us at: http://mebfaber.com/2016/10/12/podcast-episode-24-learning-love-investment-bubbles/ Episode 24 brings us back to our most controversial episode format: the “solo Meb” show. Listeners seem to either love and loathe this style of show. If you fall into the “loathe” camp, it’s a short episode so the pain is limited. But hopefully you will listen, as Meb dives into the fascinating, and possibly timely, subject of bubbles. The quick takeaway? Using a trend following approach would have helped you reduce drawdowns as popping market bubbles ravaged portfolios. And this would have helped you achieve investing’s main goal: surviving another day. Meb then dives in, first defining bubbles, then referencing three of the most famous bubbles in history: the South Sea Company bubble, the Mississippi bubble, and the Dutch tulip mania, each of which saw drawdowns of 90%. Meb dives deeper into the South Sea Company bubble. In short, the South Sea Company was a huge pump-and-dump scheme – catching none other than Sir Isaac Newton in its carnage. From here, Meb discusses strategies for capturing the upside of bubbles while protecting yourself from the fallout. One solution? Trend following, using the 10-month simple moving average. It does a great job of reducing volatility and drawdowns, and improving returns. Meb ends the show by revisiting the South Sea Company bubble, this time putting an actual figure on Newton’s losses, and comparing them to what a trend follower would have made. What’s the difference? Find out in Episode 24.
Views: 130 The Meb Faber Show
Tulipmania II: "The price can only go up!"
 
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In the 1630s the tulip trade started to change. And one change led to another, until eventually the whole thing had become unsustainable and the entire tulip trade would eventually collapse. So let’s look at how this started. ----------------------------------------------------------------------- Like & Share! Facebook: https://www.facebook.com/averythingchannel/ Patreon: https://www.patreon.com/AveryThing ----------------------------------------------------------------------- So at this point, in 1634, people had slips of paper stating the ownership of a tulip bulb. Remember how I said earlier that traders would only buy and sell tulips while they are in bloom, so they can assess the quality? Well, with a slip of paper you could much more easily trade tulip bulbs. You no longer needed to wait until a flower bloomed, you could now sell it at any time you wanted. And this is the second major change in the tulip trade. Before, tulip trading was highly seasonal. People would come in, they would look at the tulip, and then the flower would be sold. But now, you could trade it at any time you wanted. So if a particular brand of tulips generally looks good, then you’d pay whatever the price of that particular brand of tulip is at that moment. This makes sense. If a particular breed was worth 10 Guilders at the time, you could buy that breed knowing that this flower was probably around 10 Guilders anyway as breeds don’t vary that much. That makes sense. We do the same now when we buy online. We don’t go to the warehouse to check if the smartphone you want to buy is really as good as we’ve been told, we simply trust that a smartphone is a certain quality and it is worth a certain amount of money. Simple… well, not really… But before we delve further into the pit of financial collapse, let’s have some trivia to break up this video. Tulips would often be named after the owner or city, with words added to suggest high quality such as general or admiral. And as the price for tulips increased, so did the extravagance of naming them. In order to make their bulb sound ever more impressive, there were tulips such as general of generals of Gouda... because one general wasn't good enough... apparently. As someone working in marketing, I can respect this type of naming system. Okay, so people are now trading slips of paper stating ownership of a bulb. And as a result, people were trading more and more. Prices were soaring at this point. And this led to the third major change. When people heard of the insane amount of profits tulip traders were making, they wanted in on the action. So many new traders entering the tulip market changed everything about the tulip trade. And as prices grew, more and more people who knew nothing about tulips wanted to get into the profitable tulip trade. So people who knew little about tulips started buying tulips with the idea they could then sell it for a profit in the future, without ever wanting to own a tulip themselves or plan to make profit on them that was sustainable. They weren't interested in tulips, they were interested in profits. And these new traders changed the tulip trade. It was no longer about a single bulb or a particular breed of tulip. No. From now on traders were far more interested in buying large amounts of tulips in order to make the most profit. now, not all tulips were equal and each breed had its own price. But it was no longer about the quality for each individual tulip bulb. Futures Contracts which previously told you, you owned a single bulb, now turned into futures stating you owned 10 or 50 bulbs. And so, with people who knew almost nothing about tulips, buying large sums of tulips while being told that the price can only go up...! If you remember my example of bitcoin in the last episode, you may have already guessed where this is going. Prices grew faster and faster. They began to skyrocket by the end of 1636, a few months before the collapse of the tulip prices. Within three months individual bulbs were sold dozens of times, and increasing in price more than ten-fold. And the prices for cheaper bulbs increased as much as twenty-fold. All in the space of three months. Even the most common bulbs, the ones nobody really cared about before, were now sold for large sums. By this point, a single bulb was able to purchase a large house. Or if you got a really valuable one, you could buy an entire villa. This was the height of Tulipmania, the prices were now so high that you could buy an entire street for only a couple of tulip bulbs.
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: 10 Richard Walker
Stock Market Bubbles: When Does Intervention Work? Federal Deposit Insurance Corporation (1987)
 
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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 late 1880s and early 1890s, the Nifty Fifty stocks in the early 1970s, Taiwanese stocks in 1987 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. A rising price on any share will attract the attention of investors. Not all of those investors are willing or interested in studying the intrinsics of the share and for such people the rising price itself is reason enough to invest. In turn, the additional investment will provide buoyancy to the price, thus completing a positive feedback loop. Like all dynamic systems, financial markets operate in an ever changing equilibrium, which translates into price volatility. However, a self-adjustment (negative feedback) takes place normally: when prices rise more people are encouraged to sell, while fewer are encouraged to buy. This puts a limit on volatility. However, once positive feedback takes over, the market, like all systems with positive feedback, enters a state of increasing disequilibrium. This can be seen in financial bubbles where asset prices rapidly spike upwards far beyond what could be considered the rational "economic value", only to fall rapidly afterwards. Investment managers, such as stock mutual fund managers, are compensated and retained in part due to their performance relative to peers. Taking a conservative or contrarian position as a bubble builds results in performance unfavorable to peers. This may cause customers to go elsewhere and can affect the investment manager's own employment or compensation. The typical short-term focus of U.S. equity markets exacerbates the risk for investment managers that do not participate during the building phase of a bubble, particularly one that builds over a longer period of time. In attempting to maximize returns for clients and maintain their employment, they may rationally participate in a bubble they believe to be forming, as the risks of not doing so outweigh the benefits. http://en.wikipedia.org/wiki/Stock_market_bubble
Views: 996 The Film Archives
‘Bubbles’ are no longer just in tea: five ways to enjoy boba in Taiwan
 
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Subscribe to our YouTube channel for free here: https://sc.mp/subscribe-youtube Boba, or bubble tea, has become one of Taiwan’s favourite exports. The drink consisting of tiny tapioca balls added to a variety of flavoured teas was invented on the island in the 1980s. But nowadays, the tiny, squishy balls can be found in more than just drinks. Read more: https://www.scmp.com/lifestyle/food-drink/article/3009650/beyond-bubble-tea-five-creative-boba-treats-sending-taiwanese (Photo: Rachel Cheung) Follow us on: Website: scmp.com Facebook: facebook.com/scmp Twitter: twitter.com/scmpnews Instagram: instagram.com/scmpnews Linkedin: linkedin.com/company/south-china-morning-post/
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. John Laws Mississippi Bubble took place in France at pretty much the same time as John Blunts South Sea Bubble took Great Britain by storm. After the long reign of Louis XIV, France was. It was one of the most sensational get-rich-quick schemes heard of in a long time, but it eventually burst over the head of its originator, John Law. This rags to riches to rags story, in.
Views: 23 Sydney Mariela
September 19th - This Day in Stock Market History
 
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September 19th – This Day in Stock Market History For more, visit: http://www.begintoinvest.com/september-19/ September 19th, 1720 – A run begins on Sword Blade Bank, official banker of the South Sea Company, as the South Sea Bubble finally pops. The panic started as shares of South Sea Company were cratering, shares had fallen 70% over the previous 3 months. At the time, depositors were able to exchange banknotes for silver, and depositors began exchanging their Swords Bank notes for silver coins. The bank tried to delay the redemption of silver by paying out in small coins very, very slowly. The tactic would only delay the inevitable as the bank was forced to close its doors September 24th. September 19th, 1873 – One day after Jay Cooke & Co. failed, the markets open with strong selling. Cornelius Vanderbilt, America’s richest railroad tycoon, had crafted a plan during a secret meeting with his allies the night before. After the markets dropped at the open, Vanderbilt attempted to keep the market afloat by buying select stocks such as New York Central. But unknowingly at the time, Vanderbilt had some unwanted help that day. Jay Gould, one of Vanderbilt’s fiercest rivals was quickly accumulating positions in Vanderbilt’s companies in an attempt to gain control. Over the next year Gould would quietly gain control of Erie Railroad from Vanderbilt. The trading day closed without a large drop, and New York bars were filled with traders who drank to celebrate the “end of the panic”. However the celebration was premature, the panic would resume the next day and result in the closure of the NYSE for 10 days. September 19th, 1881 – President Garfield dies as a result of being shot July 2nd. Stock markets had been expecting the President’s condition to worsen, as stocks rose modestly the next day. (Stocks fell 4.5% on July 2nd on the news that Garfield had been shot.) Best September 19th in Dow Jones Industrial Average History: 1974 – Up 3.40%, 22.14 points. Worst September 19th in Dow Jones Industrial Average History: 1931 – Down 2.90%, 3.34 points. For more, visit: http://www.begintoinvest.com/september-19/
Views: 5 Begin To Invest
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: 150304 Jabzy
The City's Great Financial Scandals: Introduction to the conference - Professor Michael Mainelli
 
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The litany of great financial scandals is long, and sadly unending. Dickens himself covers scandals we would recognise today in Little Dorrit and Nicholas Nickleby. Beyond Dickens, the South Sea Bubble (of course), railway shares, bonds in newly independent countries (Kingdom of Poyais), never again... IOS, Saavundra, Rolls Razor, Bank of Gibraltar, BCCI, never again... endowment mortgages, Barlow Clowes, Equitable Life, Maxwell, Lloyd's names, Lehman Brothers, payment protection insurance, never again... This symposium seeks, through the ghosts of scandals past, present and future, to see what lessons we can learn and to assess which is rosier, the future of finance or of financial scandals. The transcript and downloadable versions of the lecture are available from the Gresham College website: http://www.gresham.ac.uk/lectures-and-events/what-the-dickens-the-citys-great-financial-scandals-past-and-future Gresham College has been giving free public lectures since 1597. This tradition continues today with all of our five or so public lectures a week being made available for free download from our website. There are currently nearly 1,500 lectures free to access or download from the website. Website: http://www.gresham.ac.uk Twitter: http://twitter.com/GreshamCollege Facebook: http://www.facebook.com/pages/Gresham-College/14011689941
Views: 804 Gresham College
The First Stock Market Bubble Ever Recorded – Tulip Mania - GreenLine 401k
 
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If you like this video Subscribe to our channel or Read the full article at: http://www.greenline401k.com/blogs/ Tulip Mania was the first example of derivitives, options and of a stock market bubble.In about 1634, roughly 400 years ago, in the port of Amsterdam experienced the first ever recorded stock market bubble. Tulips actually lasted longer than many other flowers, and they had all these beautiful colors, so all of a sudden they started trading them and the cost of a tulip started going up exponentially. Before you knew it, the cost of a tulip was actually becoming more than the cost of a house at that time. People were buying them in off season times. For example if it was going to bloom in June for example, people would buy it in January for $20, and then sell it to somebody in February for $30, and somebody would buy it in March for $40, hoping to sell it in June for $200. This is one of the origins of options, derivatives, speculations and stock market bubbles. Then all of a sudden, something happened. Somebody had a big auction, and they sold all these tulips, and somebody bid on it and won. The next day, he didn’t pay. When he didn’t pay, it caused panic all over in the market. Tulips dropped immediately. That seems foolish, right? Does this remind you of a stock market bubble? GreenLine 401k 1445 Huntington Drive, Suite 325 | South Pasadena, CA 91030 CA License #0H58324 | Phone: (626) 441-2284 E-Fax: (888) 940-4015 | Paper: (626) 765-3481
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: 1227 Real Life Trading