August 18, 2008
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RELATED TICKERS: FNMA
If you need a review on the South Sea Bubble, download and read the first couple chapters of Charles Mackay's 1852 classic, Memoirs of Extraordinary Popular Delusions and the Madness of Crowds.
Pay particular attention to the joint stock and national liquidity scams that occured in France (Mississippi Scheme) and England (South Sea Bubble).
These words, summarizing the fallout of England's near bankruptcy then, could have been written a week ago, not that Bernanke, Paulson, or the extraordinary failures in management at Fannie or Freddie would lower themselves to learn from them,too much of our banking system having become a giant Ponzi scheme that neither of them has the power or inclination to remedy:
In the mean time, public meetings were held in every considerable town of the empire, at which petitions were adopted, praying the vengeance of the legislature upon the South-Sea directors, who, by their fraudulent practices, had brought the nation to the brink of ruin. Nobody seemed to imagine that the nation itself was as culpable as the South-Sea company. Nobody blamed the credulity and avarice of the people,—the degrading lust of gain, which had swallowed up every nobler quality in the national character, or the infatuation which had made the multitude run their heads with such frantic eagerness into the net held out for them by scheming projectors. These things were never mentioned. The people were a simple, honest, hard-working people, ruined by a gang of robbers, who were to be hanged, drawn, and quartered without mercy. This was the almost unanimous feeling of the country.
Dumb and Dumber HERE!
Interesting read on the South Sea Bubble esp what happened at the end...
Despite all of the efforts of the government, Britain’s economy was in shambles. The economy didn’t fully recover until one century later. Several generations were adversely affected by the stock market crash. The corporate management con artists fled to other countries with their fortunes.
And this happened in the 16th century. Human nature never changes.
Bah, Proj. Gutenberg messes up all those links. Let's post them to my own space.
This is the version of the book you wanna check out.
Never trust baldie, that goes double for 2 bald men.
I heard they are sneaking out middle of the day to see the dark night movie together over and over again.
Maybe if they just promised to hold their collective breathe until the problems subside ?