Summary of William Quinn & J. D. Turner s Boom and Bust

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Summary of William Quinn & J. D. Turner's Boom and Bust , livre ebook

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35 pages

English

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Please note: This is a companion version & not the original book.
Sample Book Insights:
#1 The difference between the great classical musician George Frideric Handel and the pop singer Shane Filan is that Handel was able to make a handsome profit when he sold his shares in the South Sea Company before the end of June 1719. Filan, on the other hand, was bankrupted when the housing bubble collapsed.
#2 There are three ways in which bubbles can be useful. They may facilitate innovation and encourage more people to become entrepreneurs, which ultimately feeds into future economic growth. They may provide capital for technological projects that would not be financed in a fully efficient financial market.
#3 The word bubble is used today by commentators and news media to describe any instance in which the price of an asset appears to be slightly too high. However, this definition is controversial among academic economists, who view a bubble as a non-explanation of a financial phenomenon.
#4 The first side of our bubble triangle is marketability, or the ease with which an asset can be freely bought and sold. This is often affected by the legality of an asset, its divisibility, and how easily it can be bought and sold.

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Publié par	Everest Media LLC
Date de parution	22 juin 2022
Nombre de lectures	0
EAN13	9798822538337
Langue	English
Poids de l'ouvrage	1 Mo

Informations légales : prix de location à la page 0,0150€. Cette information est donnée uniquement à titre indicatif conformément à la législation en vigueur.

Extrait

Insights on J. D. Turner's Boom and Bust
Contents Insights from Chapter 1 Insights from Chapter 2 Insights from Chapter 3 Insights from Chapter 4 Insights from Chapter 5 Insights from Chapter 6 Insights from Chapter 7 Insights from Chapter 8 Insights from Chapter 9 Insights from Chapter 10 Insights from Chapter 11 Insights from Chapter 12
Insights from Chapter 1

#1

The difference between the great classical musician George Frideric Handel and the pop singer Shane Filan is that Handel was able to make a handsome profit when he sold his shares in the South Sea Company before the end of June 1719. Filan, on the other hand, was bankrupted when the housing bubble collapsed.

#2

There are three ways in which bubbles can be useful. They may facilitate innovation and encourage more people to become entrepreneurs, which ultimately feeds into future economic growth. They may provide capital for technological projects that would not be financed in a fully efficient financial market.

#3

The word bubble is used today by commentators and news media to describe any instance in which the price of an asset appears to be slightly too high. However, this definition is controversial among academic economists, who view a bubble as a non-explanation of a financial phenomenon.

#4

The first side of our bubble triangle is marketability, or the ease with which an asset can be freely bought and sold. This is often affected by the legality of an asset, its divisibility, and how easily it can be bought and sold.

#5

The fuel for the bubble is money and credit. A bubble can only occur when the public has sufficient capital to invest in the asset, and is therefore more likely to invest when there is abundant money and credit.

#6

The spark that starts a bubble is a mystery. It can come from two sources: technological innovation, or government policy. When economic models of bubbles fail to explain when and why bubbles start, it is because they do not take into account the role of government policies.

#7

Bubbles end when they run out of fuel, which is usually money and credit. When that happens, the market interest rate or central bank tightening causes the amount of credit to decrease, which makes borrowing to invest in an asset more difficult. As a result, speculators sell off the asset.

#8

The most long-standing explanation for bubbles is irrationality on the part of individuals and concomitant mania on the part of society. This explanation is supported by the fact that Charles Mackay, a Scottish journalist and writer, was the first to associate bubbles with madness.

#9

The view that bubbles are largely a result of irrationality has been contradicted by economists who believe that investors are rational and markets are efficient. However, the word rational is so loosely defined that many common investor behaviors can be classed as either rational or irrational, depending on the preferences of the economist.

#10

We approach the historical bubbles in this book as if we were fire scene investigators, sifting through the ashes of historical bubbles in an attempt to understand their causes. We then attempt to use this knowledge to develop policies that may prevent bubbles from happening or being socially destructive in the future.

#11

The Dutch Tulipmania of 1636–7 is an example of how the price of rare and unusual items can change rapidly. The infamy of the Tulipmania is largely due to the unreliable work of Charles Mackay.

#12

We investigate the fires that occurred throughout history, and how they were started. We use existing literature to find answers, but we also investigate the thoughts and actions of those who were on the scene at the time.
Insights from Chapter 2

#1

The War of the Spanish Succession was a conflict between Spain and its neighbors that was resolved in 1715 by the Treaties of Utrecht and Rastatt. The resolution was straightforward: Philip could remain king of Spain as long as he renounced any claim to the French throne.

#2

France, where the problem was most acute, recycled many of the debt reduction methods that it had used before. The new finance minister, the Duc de Noailles, imposed a non-negotiable write-down on creditors, with some short-term debt being unilaterally devalued by two-thirds.

#3

Law’s bank, the Banque Royale, was a private company that was backed by the French government. Its success depended on the political authorities. Law ensured that a large proportion of its shares were distributed to influential noblemen, which gave the government a vested interest in the bank’s success.

#4

Law solved the government’s debt problem by creating the bubble. He made sure Mississippi shares were much more marketable than the debt used to purchase them, and he used the General Bank to expand the money supply.

#5

The French economy was controlled by the Law of 22 March 1719, which fixed the price of shares at 9,000 livres, payable only in bank notes. This was a political disaster because it forced Law to dramatically increase the supply of bank notes, which rose from 1. 2 to 2. 7 billion livres over the course of the next 3 months.

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Summary of William Quinn & J. D. Turner's Boom and Bust , livre ebook

Vente

Business

Economics

Electronic commerce

E-Commerce

Economie gestion

Online Trading

Commerce électronique

E-commerce

E-Commerce

E-Commerce

E-commerce

E-Commerce

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