The First Crash

Lessons from the South Sea Bubble

Richard Dale (Autor)

Buch | Softcover

192 Seiten

2016
Princeton University Press (Verlag)
978-0-691-17094-7 (ISBN)

Artikel merken

For nearly three centuries the spectacular rise and fall of the South Sea Company has gripped the public imagination as the most graphic warning to investors of the dangers of unbridled speculation. Yet history repeats itself and the same elemental forces that drove up the price of South Sea shares to dizzying heights in 1720 have in recent years produced the global crash of 1987, the Japanese stock market bubble of the 1980s/90s, and the international dot.com boom of the 1990s. The First Crash throws light on the current debate about investor rationality by re-examining the story of the South Sea Bubble from the standpoint of investors and commentators during and preceding the fateful Bubble year. In absorbing prose, Richard Dale describes the trading techniques of London's Exchange Alley (which included 'modern' transactions such as derivatives) and uses new data, as well as the hitherto neglected writings of a brilliant contemporary financial analyst, to show how investors lost their bearings during the Bubble period in much the same way as during the dot.com boom.
The events of 1720, as presented here, offer insights into the nature of financial markets that, being independent of place and time, deserve to be considered by today's investors everywhere. This book is therefore aimed at all those with an interest in the behavior of stock markets.

Richard Dale is Emeritus Professor of International Banking at Southampton University, United Kingdom. His books include Risk & Regulation in Global Securities Markets; International Banking Deregulation; and The Regulation of International Banking. He has been a Parliamentary advisor in the United Kingdom on financial regulatory policy and has testified before U.S. Congressional Committees on regulatory issues.

Introduction 1 Chapter One: Coffee Houses, The Press and Misinformation 7 Chapter Two: Exchange Alley and the Evolution of London's Securities Market 22 Chapter Three: Origins of the South Sea Company 40 Chapter Four: John Law and the Mississippi Bubble 56 Chapter Five: The South Sea Scheme 73 Chapter Six: The Bubble 96 Chapter Seven: The Crash 125 Chapter Eight: Crisis Resolution 140 Chapter Nine: Lessons from the South Sea Bubble 155 Appendix I: Hutcheson's South Sea Parable 171 Appendix II: Technical Note on Stock and Subscription Price Data 172 Chapter Ten: Conclusion 178 Glossary 185 Bibliography 187 Index 195

Erscheinungsdatum	03.06.2016
Verlagsort	New Jersey
Sprache	englisch
Maße	152 x 235 mm
Gewicht	312 g
Themenwelt	Geschichte ► Teilgebiete der Geschichte ► Wirtschaftsgeschichte
Themenwelt	Wirtschaft ► Volkswirtschaftslehre ► Finanzwissenschaft
ISBN-10	0-691-17094-0 / 0691170940
ISBN-13	978-0-691-17094-7 / 9780691170947
Zustand	Neuware