The first speculative bubble

28 November, 2017 at 14:29 | Posted in Economics | 6 Comments

 

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  1. For further Readings on ,those topics,those classics:
    Manias, Panics and Crashes A History of Financial Crises
    Charles P. Kindleberger http://media.library.ku.edu.tr/reserve/resfall16_17/Intl531_CBakir/week7.pdf

    The World in Depression, Charles Kindleberger, The World in Depression, 1929-39, “An Explanation
    of the 1929 Depression,” http://media.library.ku.edu.tr/reserve/resfall16_17/Intl531_CBakir/week7.pdf

  2. Sorry! Here is Manias, Panics and Crashes
    A History of Financial Crises
    Charles P. Kindleberger and Robert Z. Alibe
    ftp://nozdr.ru/biblio/kolxo3/G/GH/Kindleberger%20C.P.,%20Aliber%20R.Z.%20Manias,%20Panics%20and%20Crashes..%20A%20History%20of%20Financial%20Crises%20(Palgrave,%202005)(ISBN%20140393651X)(318s)_GH_.pdf
    Hope the link work

  3. Great book, Jan. [I wrote a foreword to the earlier Swedish translation (Manier, panik och krascher, Pontes förlag 1999)]

    • A great foreword in that Book,,Lars! I hope you sended a copy to Swedish Riksbank and our Department o Finance! Hälsa Fabian,Jan

  4. From wikipedia: “Some economists also point to other factors associated with speculative bubbles, such as a growth in the supply of money, demonstrated by an increase in deposits at the Bank of Amsterdam during that period.[50]”

    But this increase is an effect of arbitrary money creation by finance, using rolling loans. Did the money get destroyed by the Bank of Amsterdam? Or was the credit created during the run-up converted to money? They were on gold, but banks make paper gold and get away with it. Today of course there are perfect hedges in some markets and riskless arbitrage in other segmented money markets. Conclusion: prices are largely arbitrary.

  5. Speaking of bubbles the Swedish housing prices are starting to decrease. The topic needs discussion.


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