Banks fail. Stocks plummet. Nations default. According to World Bank economist Gerard Caprio, we are now living in a “boom in busts.” From cryptocurrency to China’s shadow banks, we must ask: What will bring the next disaster?
Author(s): Connel Fullenkamp
Series: The Great Courses
Publisher: The Teaching Company
Year: 2018-08
Language: English
Commentary: Well,...,I’d rather starve because of MY choices, rather than the State’’s "choices".
Pages: 286
Tags: Finance
Professor Biography......Page 3
Table of Contents......Page 5
Disclaimer......Page 6
Course Scope......Page 7
Lecture 1 • Fintech, Crypto, and the Future of Disaster......Page 9
Financial Technology......Page 10
Cryptocurrencies and Initial Coin Offerings......Page 13
Electronic Money and Future Financial Crises......Page 16
Lecture 2 • The Con Men Charles Ponzi and Ivar Kreuger......Page 20
Charles Ponzi......Page 21
Ivar Kreuger......Page 24
Lecture 3 • A Boom in Busts......Page 30
Financial Stability and Innovation......Page 31
Financial Deregulation......Page 34
Financial Crises......Page 36
Financial Risk......Page 38
Lecture 4 • The Tulip Bubble......Page 40
Asset Price Bubbles......Page 41
The Tulip Bubble......Page 44
The Dutch Stock Market......Page 47
Lecture 5 • The South Sea Bubble......Page 50
The South Sea Company and Corporate Charters......Page 51
John Blunt and the Sword Blade Company......Page 53
Money Subscriptions......Page 56
The Bubble Act......Page 59
Lecture 6 • The Mississippi Bubble......Page 62
John Law’s General Bank......Page 63
The Rise of the Mississippi Company......Page 64
Law’s Big Mistake......Page 68
Lecture 7 • Holes in the Ground: Mining Stock Frauds......Page 71
Why Mining Stocks?......Page 72
George Graham Rice......Page 73
Herbert Hoover......Page 78
Lecture 8 • The Panic of 1907......Page 81
The American Banking System......Page 83
The Gold Standard......Page 85
J. P. Morgan and the Panic of 1907......Page 87
Lecture 9 • Hyperinflation in Germany and Zimbabwe......Page 93
Hyperinflation in Germany......Page 95
Hyperinflation in Zimbabwe......Page 101
Lecture 10 • The Crash of 1929......Page 105
Changes in the American Economy and Corporate Earnings Growth......Page 107
What Kept Stock Prices Rising?......Page 110
Overvaluation and Crash......Page 112
Lecture 11 • The Great Contraction of 1931–1933......Page 116
The Great Contraction......Page 117
The Building and Loan Association......Page 123
Lecture 12 • The Savings and Loan Crisis......Page 126
The Savings and Loan Association......Page 127
Acts of Congress......Page 130
Falling Interest Rates and Financial Crimes......Page 133
The Height of the Crisis......Page 134
Lecture 13 • The Crash of 1987......Page 137
Insurance against Losses......Page 138
Option Pricing......Page 139
Computerized Trading and the Crash......Page 141
Lecture 14 • Japan’s Lost Decade......Page 148
The Japanese Financial System......Page 149
The Bubble Economy......Page 150
The Bursting of the Bubble Economy......Page 154
Jusen and the Breakdown of the Convoy System......Page 156
The Lost Decade......Page 157
Lecture 15 • Bankers Trust Swaps......Page 160
Interest Rate Swaps......Page 161
The P&G and Bankers Trust Swap......Page 163
Lecture 16 • Asia, Greece, and Global Contagion......Page 168
The Thai Baht......Page 170
Changes in a Currency’s Value......Page 172
Thailand’s Currency Crisis......Page 174
Currency Crisis in Greece......Page 178
Lecture 17 • The Orange County, California, Bankruptcy......Page 180
The Orange County Investment Pool......Page 181
Repos: The Secret behind Citron’s Success......Page 183
Citron’s Investment Strategy......Page 185
A Devastating Surprise for Citron......Page 187
Lecture 18 • The Dotcom Bubble......Page 191
The Start of the Internet Stock Boom......Page 192
The Value of Intangible Assets......Page 194
The Dividend Discount Model......Page 196
Dotcoms: Destined to Fail......Page 198
Lecture 19 • Rogue Traders at SocGen and Barings......Page 202
Jérôme Kerviel......Page 204
Nick Leeson......Page 208
Lecture 20 • Unhedged! Long-Term Capital Management......Page 213
Arbitrage and Convergence Trades......Page 214
Meriwether’s Dream Team of Finance......Page 216
The Flight-to-Safety Trend......Page 220
The End of the Fund......Page 222
Lecture 21 • The London Whale and Value at Risk......Page 225
Value at Risk......Page 226
The Financial Markets Crisis of 2008......Page 228
The London Whale......Page 230
Lecture 22 • The Goldilocks Economy and Three Bads......Page 236
The Great Moderation......Page 237
Bad Monetary Policy......Page 239
Bad Private-Sector Behavior......Page 241
Bad Financial Regulation......Page 245
Lecture 23 • Subprime Debt and the Run on Wall Street......Page 247
Subprime Mortgages and Mortgage-Backed Securities......Page 248
Runs on Financial Institutions......Page 251
Downgrades and Distress......Page 255
Lecture 24 • China’s Shadow Banks......Page 259
Shadow Banking in China......Page 261
China’s Trust Companies......Page 262
China’s Rapid Credit Growth......Page 264
Bibliography......Page 268
Image Credits......Page 284
