Cambridge University Press 978-1-108-42125-6 — Boom and Bust William Quinn , John D

Cambridge University Press 978-1-108-42125-6 — Boom and Bust William Quinn , John D. Turner Index More Information

Index

1720 bubbles outside of Britain, France or role in the South Sea Bubble, 24, 37 the Netherlands, 31 Bank of International Settlements, 141 Bank of Japan, 137, 142, 146, 148 Abbott, Chief Justice, 46 banking crisis. See financial crisis academic theories of bubbles during and Banks and Currency Amendment Statute after the Dot-Com Bubble, 167–9 1887, 92 Accles, Ltd., 102–3 Banque Générale. See General Bank Act to restore the publick Credit 1721, 28 Banque Royale. See General Bank Ahern, Bertie, 171 Bear Stearns, 178 algorithmic trading, 215 Berners-Lee, Tim, 153 Amazon.com, 160 Big Four Japanese securities companies, America Online, 157, 160, 163 140, 146 American International Group (AIG), Birmingham Small Arms, 111 178–9 bitcoin, 210–11 Andreesen, Marc, 153, 167 Black Thursday, 24 October 1929, 123–4, Anglo Irish Bank, 180 126 Argus, 81, 87 blockchain, 210–11 austerity Bloomberg Television, 158 after the Japanese bubbles, 148 Bretton Woods System, 136 Australasian Insurance and Banking Record, brewery boom of the 1890s, 111 78, 85, 86, 87 Brodzky, Maurice, 88 broker loans bank failures. See financial crisis in relation to the 1920s stock market Bank of Australasia, the, 93 bubble, 123, 128, 130 Bank of England in relation to the Chinese bubbles, 205–7 in relation to the British Bicycle Mania, in relation to the Dot-Com Bubble, 162 108 regulation of after the 1920s stock market in relation to the financial crisis of 1825, bubble, 134 48, 54–6 Brown, Gordon, 170 in relation to the financial crisis of 1847, Bubble Act 1720, 28, 38, 40, 46 74 repeal of, 47, 56 in relation to the first emerging market bubble triangle, the bubble, 52–3 as a predictive tool, 211–12 in relation to the Great Railway Mania, description of, 4–9 65–6, 68 diagram of, 5 in relation to the Subprime Bubble, 178, bubbles 179 consequences of, 9–10

282

INDEX

criteria for inclusion, 12 Dow Jones Industrial Average, 215 definition of, 4 in relation to the 1920s, 120–5 etymology of, 3–4 Dunlop Company, The, 100–102, 106 investing in, 220–2 list of included, 13 Economist, The prevention of, 216–18 in relation to the British Bicycle Mania, rationality/irrationality of, 10–11 103 reasons for changes in frequency of, 214 in relation to the Dot-Com Bubble, 159 reasons for end of, 9 in relation to the Great Railway Mania, riding of, 7, 221 58, 64, 65, 72 eigyo tokkin funds, 143–4 capital controls, 198 Eldon, Lord, 45–6 capital flight. See foreign investment European Union sovereign bailouts, 180–1 central banks. See Bank of England; Federal export-led growth Reserve, the; Bank of Japan in post-war Japan, 135–6 China Securities Regulatory Commission, role in the Subprime Bubble, 182 196, 200, 202, 209 Chinese Ministry of Finance, 203 Fama, Eugene, 4, 11 Cisco, 157 Fannie Mae and Freddie Mac, 178, 187, 189 CNBC, 158 Federal Reserve, the CNNfn, 158 in relation to the 1920s, 116, 119, 121, collateralised debt obligations (CDOs), 176 124, 128 Community Reinvestment Act of 1977, 187 in relation to the Dot-Com Bubble, 162 Corn Laws, repeal of, 65 in relation to the Great Depression, 131 cornering the market in relation to the Subprime Bubble, as a constraint on short selling, 8 178–9, 180, 182, 187 in relation to the British Bicycle Mania, female investors 109–10 in relation to the British Bicycle Mania, in relation to the bubbles of 1720, 32 107–8 in relation to the first emerging market in relation to the Great Railway Mania, 70 bubble, 51 in relation to the South Sea Bubble, 36 in relation to the Great Railway Mania, financial crisis 70–1 connection to bubbles, 2–3, 6 credit default swaps, 179 of 1825, 48, 54–6 credit-rating agencies, 176, 189 of 1847, 74–5 cyclically adjusted price-to-earnings ratio of the 1890s in Australia, 95 (CAPE), 156–7 of the 1930s in the United States. See Cycling Magazine, 104–5 Great Depression, the of the 1990s in Japan, 148–9 deflation of the 2000s, 177–81 in relation to the Great Depression, financial deregulation, 9 131–2 after 1825, 56 in relation to the Mississippi Bubble, 35 global, after 1970, 152, 214 Defoe, Daniel, 26 in relation to the 1920s, 119 democratisation of investment in relation to the Australian Land Boom, in relation to the Great Railway Mania, 69 79, 91–3 in the United.States, 115–17 in relation to the Chinese bubbles, 196–8, derivatives 199–200, 205–6 in relation to the Dot-Com Bubble, 169 in relation to the Great Railway Mania, Disraeli, Benjamin, 47, 51, 53 68 dot-com bubbles outside the United States, in relation to the Japanese bubbles, 137, 156, 157, 160, 165, 166 139–41, 143–4

283

INDEX

financial deregulation (cont.) futures trading in relation to the Subprime Bubble, in relation to the Japanese bubbles, 144 188–9 post-war regulation in Japan, 135 financial innovation in relation to the Australian Land Boom, Galbraith, John Kenneth, 11 88 gangster involvement in the Japanese in relation to the Mississippi Bubble, bubbles, 147 18–20 Garber, Peter, 34 Financial Post, The, 103 Gazette d’Amsterdam,20 financial sector lobbying in relation to the General Bank, 18–19 Subprime Bubble, 189 Gissing, George, 107 Financial Times, The Gladstone, William, 59–61 in relation to the British Bicycle Mania, Glenmutchkin Railway, The, 61–3, 69, 70–1, 101, 105–6, 112 76 in relation to the Dot-Com Bubble, 159, global financial crisis. See financial crisis of 164 the 2000s first railway mania, 59 government debt flipping. See speculation in relation to the first emerging market Florida land boom. See US housing boom of bubble, 41 the 1920s in relation to the Mississippi Bubble, Ford, Henry, 129 17–18, 20 foreign bond boom of the 1920s in the US, in relation to the South Sea Bubble, 119–20 17–18, 23–5, 27–8 Foreign Exchange Law of 1980, the government response to the Australian (Japan), 137 Land Boom, 93–5 foreign investment government-sponsored entities. See Fannie in relation to the 1920s, 119–20 Mae and Freddie Mac in relation to the Australian Land Boom, Great Depression, the, 130–2 78–9, 95 Great Railway Mania, the in relation to the Chinese bubbles, magnitude of, 63–4, 67–8 199–200 Greenspan, Alan, 152, 157, 162 foreign investors in relation to the Subprime Bubble, 181, Hassett, Kevin, 158 182 Hatry, Clarence, 130 Fortune Magazine, 154, 159 herding, 11 fraud high-frequency trading, 215 in relation to the 1920s stock market Hokkaido Takushoku Bank, 148 bubble, 123 Hooley, Ernest Terah, 100–102, 103 in relation to the Australian Land Boom, Housing Bill of 1980 (UK), 188 93 Hudson, George, 66 in relation to the British Bicycle Mania, Hutcheson, Lord Archibald, 26, 32 100, 102–3 in relation to the Dot-Com Bubble, 164–5 Industrial Bank of Japan, the, 147 in relation to the first emerging market inexperienced investors bubble, 40–1 in relation to the Australian Land Boom, in relation to the Great Railway Mania, 66 82 in relation to the Japanese bubbles, in relation to the British Bicycle Mania, 149–50 107–8 in relation to the US housing boom of the in relation to the Chinese bubbles, 198, 1920s, 119 204–5 Freddie Mac. See Fannie Mae and Freddie in relation to the Dot-Com Bubble, 158, Mac 161–2, 163

284

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in relation to the Great Railway Mania, in relation to the 1920s stock market 69–70, 74 bubble, 128 in relation to the Subprime Bubble, in relation to the Australian Land Boom, 176–7, 184 90 initial public offerings in relation to the British Bicycle Mania, in relation to the Chinese bubbles, 200–1 112 in relation to the Dot-Com Bubble, 156 in relation to the bubbles of 1720, 20–2, in relation to the Japanese bubbles, 142 25, 32 insider investors in relation to the ﬁrst emerging market in relation to the Australian Land Boom, bubble, 51 92–3 in relation to the Great Railway Mania, 68 in relation to the British Bicycle Mania, Liberty bonds, 116–17, 127 107–8 LIBOR, 178 in relation to the Dot-Com Bubble, 155 liquidity assistance in relation to the South Sea Bubble, 25 in relation to the Australian Land Boom, institutional investors 94–5 in relation to the Dot-Com Bubble, 162–3 Liverpool and Manchester railway, the, 59 in relation to the Japanese bubbles, logrolling 139–40, 145, 146–7 in relation to the Great Railway Mania, 72 potential role in future bubbles, 215 Long-Term Credit Bank of Japan, 148 Internet, The loose credit effect on securities trading, 162 as of 2016, 210 origins of, 152–3 in relation to the 2000s housing bubbles, investment trusts 175–7 in relation to the 1920s stock market in relation to the Australian Land Boom, bubble, 128 88–90 irrational exuberance, 152, 168, 170 in relation to the Chinese bubbles, 205–7 in relation to the Dot-Com Bubble, 162 Janeway, William, 3 in relation to the Subprime Bubble, 181, Japan Joint Securities Corporation, 140 182–3 Japan Securities Holding Association, 140 loose monetary conditions Japanese land booms before the 1980s, 138 after the Subprime Bubble, 191–2 Japanese Ministry of Finance, 142, 143, as of 2016, 210 149 connection to bubbles, 6–7 joint-stock companies in relation to the Australian Land Boom, after 1825, 56 78–9, 88–9 decline after 1720, 37–8 in relation to the British Bicycle Mania, 108–9 Kanemaru, Shin, 150 in relation to the Dot-Com Kelly, Morgan, 170 Bubble, 162 Kindleberger, Charles, 4, 11, 169 in relation to the Great Railway Mania, King Carlos II of Spain, 16 68–9 in relation to the Japanese bubbles, land development companies 137–8, 143 in relation to the Australian Land Boom, in relation to the Mississippi Bubble, 22, 79–80, 82–7, 90 31–2 in relation to the Japanese bubbles, 145 in relation to the Subprime Bubble, Latin American sovereign bond boom of 182–3 the 1820s, 41 Lowenstein, Roger, 164–5 Law, John, 18–23, 31 Lehman Brothers, 178 MacGregor, Gregor, 41 leveraged shares Mackay, Charles, 10, 14, 33, 58

285

INDEX

margin calls in relation to the 1920s stock market in relation to the 1920s stock market bubble, 129–30 bubble, 123, 130 in relation to the Dot-Com Bubble, 163–4 margin loans. See broker loans New York Daily News, 123, 125 market manipulation New York Investment News, 124 in relation to the British Bicycle Mania, New York Times, The 100, 109–10 in relation to the 1920s stock market in relation to the bubbles of 1720, 33 bubble, 122, 124–6, 129, in relation to the Mississippi Bubble, 22 in relation to the Chinese bubbles, 198 marketability in relation to the Dot-Com Bubble, 154, as of 2016, 210 164 between the 1720 and 1825 bubbles, news media 39–40 after the first emerging market bubble, definition of, 5–6 57 in relation to the 1920s stock market after the South Sea Bubble, 35–6 bubble, 127–8 in relation to the 1920s stock market in relation to the Australian Land Boom, bubble, 122–3, 125–6 88 in relation to the Australian Land Boom, in relation to the British Bicycle Mania, 81, 87–8 108 in relation to the British Bicycle Mania, in relation to the bubbles of 1720, 31 100–1, 103–5, 109 in relation to the Chinese bubbles, 207 in relation to the Chinese bubbles, 198, in relation to the Dot-Com Bubble, 161–2 200, 203 in relation to the first emerging market in relation to the first emerging market bubble, 52, 54 bubble, 49–50 in relation to the Great Railway Mania, in relation to the Great Railway Mania, 68 63–5 in relation to the Japanese bubbles, in relation to the Mississippi Bubble, 20 143–4 in relation to the South Sea Bubble, 26–7 in relation to the Subprime Bubble, in relation to the Subprime Bubble, 185 181–2 role in past and future bubbles, 218–20 Marx, Karl, 58 Northern Ireland housing bubble of the Microsoft, 154, 157, 163 2000s, 2, 175, 177, 182 mining booms of the 1890s, 110–11 Northern Rock, 178 Mississippi Company, 19–22 Noyes, Alexander Dana, 122 modernism, 129 momentum trading. See speculation Panic of 1907, the, 124 mortgage-backed securities (MBS) Peel, Robert, 65 in relation to the Subprime Bubble, 176, penny-farthing, 99 177–9, 185–6 People’s Daily, 200, 203 in relation to the US housing boom of the Plaza Accord, the, 136–7, 141 1920s, 117–18 Ponzi, Charles, 119 Mosaic internet browser, 153 Poyais. See Macgregor, Gregor promotion boom NASDAQ index, 156–7, 159–60 in Australian Land Boom companies, National Asset Management Agency, 180 82–3 National City Bank, 120, 126, 127 in relation to the 1720 bubbles, 28–30 National Land Agency (Japan), 145 in relation to the first emerging market Netherlands in relation to the bubbles of bubble, 41–5 1720, 29–31, 36 in relation to the Great Railway Mania, 63 Netscape, 153–5, 163, 164 of 1807–8, 40 new era narratives, 8, 218 of railways in 1836–7, 59

286

INDEX

quantitative easing, 192 short selling Chinese efforts to curtail, 202–4 Railway Act 1844, 59–61, 71–2 definition of, 7 railway authorisation process in relation to difficulty of, 221 the Great Railway Mania, 62–3 in relation to the British Bicycle Mania, Railway Board, 62–3, 71–2 109–10 railway booms in the United States, 72–3 in relation to the bubbles of 1720, 32 Railway Dissolution Act 1846, 67 in relation to the Chinese bubbles, 208 Railway Times, 63, 64, 65, 68, 72 in relation to the first emerging market Raleigh Company, The, 106 bubble, 51–2 reaching for yield in relation to the Great Railway Mania, definition of, 6 70–1 during the Great Railway Mania, 68 in relation to the Subprime Bubble, in relation to the Subprime Bubble, 162 185–6 recession Smoot-Hawley tariff, the, 130 after the 1920s stock market bubble. See South Sea Company, the, 1, 23–6 Great Depression, the South-East Asian booms of the 1990s, 14 after the Australian Land Boom, 96 spark after the British Bicycle Mania, 111 description of the concept, 8–9 after the Dot-Com Bubble, 165–6 for the 1720 bubbles, 33 after the first emerging market bubble, for the 1920s stock market bubble, 56 129–30 after the Japanese bubbles, 148–9 for the 2000s housing bubbles, 186–7 after the Mississippi Bubble, 35 for the Australian Land Boom, 91 after the Subprime Bubble, 189–91 for the Bitcoin Bubble, 210 Reform Plan for the Tokyo Area of 1985, 145 for the British Bicycle Mania, 99–9 for the Chinese bubbles, 196–8, 199–200 S&P 500 index, 156–7, 159–60 for the Dot-Com Bubble, 152–3, 163 Sanyo Securities, 148 for the first emerging market bubble, 53 satire for the Great Railway Mania, 71 in relation to the bubbles of 1720, 34, for the Japanese bubbles, 145–6 35–6 predicting a, 213–14 in relation to the first emerging market speculation bubble, 44–5 definition of, 7 in relation to the Great Railway Mania, in relation to the 1920s stock market 61–3, 69–70 bubble, 128–9 Scandinavian housing boom, 14 in relation to the Australian Land Boom, scrip certificates, 62 90–1, 92–3 Securities Act of 1933, 134 in relation to the British Bicycle Mania, Securities and Exchange Law of 1948 109–10 (Japan), 135 in relation to the bubbles of 1720, 32–4 Securities Exchange Act of 1934, 134 in relation to the Chinese bubbles, 198, shadow banks 207–8 in relation to the Australian Land Boom, in relation to the Dot-Com Bubble, 163 80, 88–9 in relation to the Great Railway Mania, 69 in relation to the Chinese bubbles, 199, in relation to the Japanese bubbles, 205–7 144–5 in relation to the Japanese bubbles, 145, in relation to the Subprime Bubble, 148 183–4 in relation to the Subprime Bubble. See in relation to the US housing boom of the American International Group (AIG) 1920s, 118–19 Shiller, Robert, 11, 157, 168, 170, 184, 218 state-owned enterprises, 195

287

INDEX

stock market bubbles of the 1920s outside in relation to the Japanese bubbles, 142 the United States, 126–7 unicorn bubble, the, 213 Sumitomo Bank, 149 US housing boom of the 1920s, 117–19 useful bubbles, 3, 75, 213–14 Table Talk,87–8 the British Bicycle Mania as an example, technological innovation 113–14 in modern financial markets, 214–15 the Dot-Com Bubble as an example, in relation to the 1920s stock market 166–7 bubble, 120, 129–30, 132 in relation to the British Bicycle Mania, Visa, the, 22–3 99–9, 113 volatility in relation to the Dot-Com Bubble, 153, 163 in relation to the 1920s stock market in the fourth industrial revolution, 213 bubble, 123 role in bubbles, 3, 8 unaccompanied by a bubble, 213 Wall Street Crash, the, 123–5 television cause of, 130 rise of financial television in relation to connection to the Great Depression, the Dot-Com Bubble, 158 130 role in the Subprime Bubble, 184–5 Wall Street Journal, The, 122 Thai stock market bubble, 14 War of the Spanish Succession, The, 17, Time Warner, 157, 160 23 Times, The Wilks, John ‘Bubble’, 40, 46 in relation to the first emerging market Windhandel. See Netherlands in relation to bubble, 40, 46, 48, 49–50, 51 the bubbles of 1720 in relation to the Great Railway Mania, World Trade Organisation 63, 64–5 Chinese accession to, 196 tokkin funds, 140, 143–4 World War I, 115–16 Tokyo City Bank, 148 World War II, 132, 134 TOPIX index, the, 141, 142 World Wide Web. See Internet, The town- or village-owned enterprises, 195 transaction costs Xiaochuan, Zhou, 198 in relation to the 1920s stock market Xiaoping, Deng, 194–5 bubble, 128 in relation to the Dot-Com Bubble, 161 yakuza. See gangster involvement in the Tulipmania, 11, 13–14 Japanese bubbles Yamaichi Securities, 148 underpricing in relation to the Dot-Com Bubble, 155 zaibatsu, 135, 140

288