Early Access! Chapter 4: The Bubble Pops
Added 2015-04-10 10:02:21 +0000 UTCAt last, the South Sea Company gets too greedy: the public wakes up, and the bubble pops. Disastrously...
Comments
Glad you're enjoying it! It's been a challenge, but we're all having more fun than we expected we'd have with it, too.
Extra History
2015-04-14 09:12:27 +0000 UTCJust as long as you learn the general principles and not the practices. ;D Don't make us responsible for your stock bubble schemes!
Extra History
2015-04-14 09:09:50 +0000 UTCI personally think he was just greedy, didn't care about the consequences, and thought he could get away with it... but that's speculation on *my* part. I'll ask James if there are any primary sources from Blunt talking about why he did this and what he thought about his "success," and if there is I'm sure it will make it into Lies!
Extra History
2015-04-14 08:36:26 +0000 UTCThanks this extra history has been a lot more interesting and challenging then. I thought it would be. I had never heard of the south sea co until you guys started it. I was worried I wouldn't be able to follow along at all. You guys explain and illustrate it really well it does take a couple of rewatches. But it's so interesting I want to understand it!
noah
2015-04-11 23:15:04 +0000 UTCI think blunts plan was that it was supposed to be to big to fail. Remember it took on all of the country's debt. If it failed the whole country could collapse. The monarchu supported the company. Because of the support the back lash. Would mean anarchy. People would be calling for the heads of nobility. Perhaps blunt was confident in the idea that the government would be forced to try and keep it afloat. Of course that's speculation on my part.
noah
2015-04-11 23:01:19 +0000 UTCI honestly think this series is teaching me more about practical economic theory than any lecture. Great job guys, keep it up!
Tammy Spiller
2015-04-11 00:26:43 +0000 UTCwhat I'm trying to understand is what was Blunts long term plan then? Did he think he could grow the company stock price and keep selling it out of sheer hype indefinitely? Or is it just a case of things going so well he just went with the flow until it was completely out of control? Also isn't this essentially a form of ponzi scheme?
Michael Waisfeld
2015-04-10 23:44:03 +0000 UTCLet me do the math, here. Nothin' into nothin'... carry the nothin'... :P
Indigo
2015-04-10 23:09:17 +0000 UTCAaron, you've nailed it here. :) That's exactly what happened.
Extra History
2015-04-10 22:39:45 +0000 UTCI think it basically boils down to the south sea company got so big. Despite the fact it was worth nothing. Because it was makeing zero money the stocks where in reality worthless. Because it got so big people relized they where spending money on nothing. And 1000 times 0 will always equal zero. Meaning anybody who invested money in it and didn't relize it was worthless in time lost all there hard earned money At least that's what I think it means. I never took economics kinda wish I did.
noah
2015-04-10 17:07:52 +0000 UTCMan I need to watch every episode 3 times to understand whats going on >< economics is the one subject my mind refuses to get a grasp on
Michael Waisfeld
2015-04-10 14:23:00 +0000 UTCExciting, I'm so glad this is the one that got picked I'm a huge fan of economics and economic history!
H Michael Wayland
2015-04-10 13:33:09 +0000 UTC
