January 2021

Pantysoaker's picture

The Big Short 3 - Dr. Michael Burry Betting Against the Housing Market

1637 - Tulipmania. Speculation by traders in the Netherlands led to wildly inflate prices of Tulips and Tulip bulbs. 1797 - Land speculation bubble led to downturns in UK and the US 1819 - Land speculation, independent and unrestrained issue of paper money by banks. Led to the establishment of central banking and federal monetary policy. (the first peace-time financial crisis) 1837 - President Andrew jackson orchestrated the movement of government funds from the federal Second Bank of the United States to smaller state banks. People lost confidence in the banking system and there was a recession. 1857 - Overspeculation in the railroad industry led to a bubble and bust. The first global finaincial crisis since investors worldwide were invested in the american railroad industry. 1884 - Gold reserves in Europe were depleted. NYC based national banks halted investment in the United States (to cover bond losses abroad) 1901 - The first stock market crash of NYSE. Caused by stock cornering to take control of the Nothern Pacific Railway. Harriman, Schiff, JPMorgan, James Hill. Ruined a lot of people that year - the trade was financed by the Standard Oil Company. 1907 - The "Banker's Crisis". 50% drop in the value of the NYSE. Widespread dumping of bank stocks triggered by failed speculation (done by just two brokerage firms) that led to a market-wide liquidity crunch. 1929 - The Great Depression - stock speculation - bubble and crash leading to a ten year recession. 1937 - Unemployment spikes again during the great depression. Characterised by decline in industrial production and profits. This was the aftershock of the financial collapse hitting the industrial sector. 1974 - Global stock market crash. Hit the UK the hardest. Caused due to the collapse of the Bretton Woods system, dollar devaluation and the Oil Crisis of '73 when OAPEC countries staged a global oil embargo. 1987 - Black Monday. The first "Quant Crash". Global stock market crash that is attributed to program trading, market psychology (hysteria), and illiquidity. 1992 - Collapse of the European Exchange Rate mechanism. Caused by Hedge Funds and speculative investors. Led to a crash in the value of the british pound and the Deutsch Mark. 1997 - The Asian Financial crisis. Led to steep decline in the value of several South East Asian Currencies. Started when the Thai Bhaat could not support its peg against the US dollar - Thailand was effectively bankrupt. 2000 - The Dot-com bust. The collapse of the stock prices of internet companies. 2008 - Worldwide financial (almost) collapse due to sub-prime mortgage bubble bursting. subsequent global recession.

 

Gonna make so much $$$ shorting REITS in the next 6-12 months :D

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skeptoid's picture

When a room full of elitist retards think they are mocking a retard because the person they think is retarded is so non-retarded that they look retarded to the retarded elite. I've seen this in hi-tech many a time - levels of Dunning-Kruger that would blow your mind, but it was also thriving in non-profit health services at the Executive level to a degree I didn't think was possible. I have to make a video about it at some point.

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Pantysoaker's picture

did u see what happened to BofA and Wells Fargo in the market today? :)

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