ECON 319 Chapter Notes - Chapter 7-8: Bernard Cornfeld, Wall Street Crash Of 1929, Leveraged Buyout
9 Feb 2017
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Financial memory should be assumed to last no more than 20 years: new generation enters the scene i. Impressed by same things: attributing own good fortune to superior acumen, presume an exceptional mental aptitude in those who are identified with wealth, recollection of one disaster is erased i. There are some exceptions which lengthened time of doubt, caution and comparative sanity like john law, south sea bubble and. Great crash of 1929: by 1950s americans ceasing to regard the stock market with misgivings - modest boom, continual boom with just a few busts in the 60s, new speculative mood. Ios forbidden by sec to sell securities in america and to americans. In form of corporate takeovers and leveraged buyouts, small ownership and control made possible by large debt: new financial instrument : junk bonds, bonds with a high interest rate and high risk c.
