History 2186A/B Lecture Notes - Lecture 4: Swedbank, Tulip Mania, Hyperinflation In The Weimar Republic
30 Jun 2016
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Zombies day 4: financial panics: currency crises, currency becomes valueless, the bank run, depositors panic and demand liquidation, bubbles, over-inflated financial statements which eventually burst, crashes, broader and deeper financial crisis. **financial panic creates crisis where it may not have existed. When you invest with a brokerage you use part of your money and part of this - you also use a maintenance margin which says you have to have a certain amount of equity in your account. A lot of margin calls in a failing stock market. This plays out in the movie margin call": financial panics represents personal ruin - similar themes as disease panics. We are interested in why these turn people hysterical. The kipper-und wipperzeit: the first main financial crisis ^ Debasement (another way to devalue old currency: when you take the medal, and add other types of medal to it and make tons more coins!
