36
Party Favors: Buying Stocks on Margin
Lecture no. 36 from the course: Crashes and Crises: Lessons from a History of Financial Disasters

Taught by Professor Connel Fullenkamp | 03 min | Categories: The Great Courses Plus Online Economics & Finance Courses
As the Dow Jones Industrial Average continued to rise throughout the 1920s, people wanted to keep the party going. One way: buying stocks on margin, which means you borrow money to purchase shares.
96 Lectures
1

Fintech, Crypto, and the Future of Disaster
0 of 11 min
2

Cryptocurrencies and Blockchains
0 of 11 min
3

Cryptocurrency’s Biggest Threat
0 of 04 min
4

The Con Men Charles Ponzi and Ivar Kreuger
0 of 02 min
5

Three Key Ingredients of Charles Ponzi’s Scheme
0 of 12 min
6

The Match King: Charming, Charismatic, and a Cheat
0 of 11 min
7

Lessons from Ponzi and Kreuger
0 of 02 min
8

A Boom in Busts
0 of 02 min
9

A History of Chaos: From Tulips to 1929
0 of 11 min
10

Unleashing Deregulation, Leverage, and Risk
0 of 14 min
11

When Society and Regulation Conflict
0 of 00 min
12

The Tulip Bubble
0 of 10 min
13

High Fashion, Broken Bulbs, and Avid Traders
0 of 07 min
14

Serious Trades or Fun and Games?
0 of 09 min
15

The South Sea Bubble
0 of 06 min
16

British Government Cuts a Nifty Deal
0 of 19 min
17

Rational Behavior in Irrational Markets
0 of 01 min
18

The Mississippi Bubble
0 of 04 min
19

European Adventure: The Future of Money
0 of 20 min
20

The Paper Money Experiment Ends
0 of 01 min
21

Holes in the Ground: Mining Stock Frauds
0 of 08 min
22

George Graham Rice: World-Class Liar
0 of 13 min
23

Herbert Hoover’s Close Call in London
0 of 06 min
24

The Panic of 1907
0 of 04 min
25

Dual-Charter Banking: Federal and State Licenses
0 of 04 min
26

How the Gold Standard Limited Bank Liquidity
0 of 09 min
27

Enter J. P. Morgan
0 of 03 min
28

Morgan’s Last Hurrah
0 of 06 min
29

Hyperinflation in Germany and Zimbabwe
0 of 05 min
30

The Origins of the German (or Weimar) Hyperinflation
0 of 05 min
31

The Role of War Reparations in German Inflation
0 of 04 min
32

From High Inflation to Hyperinflation
0 of 07 min
33

Trouble in Zimbabwe
0 of 08 min
34

The Crash of 1929
0 of 09 min
35

Hyperinflation’s Common Denominator
0 of 03 min
36

Party Favors: Buying Stocks on Margin
0 of 03 min
37

Stock Pools: Swimming with Sharks
0 of 04 min
38

From Optimism to Overvaluation
0 of 09 min
39

The Great Contraction of 1931–1933
0 of 06 min
40

1930–1931: Regional Banking Panics
0 of 06 min
41

Britain Abandons the Gold Standard
0 of 06 min
42

A New Era of Stability
0 of 10 min
43

The Savings and Loan Crisis
0 of 07 min
44

Overregulated? Or Out of Control?
0 of 06 min
45

Texas, Oil, and a Boom in Trouble
0 of 05 min
46

Silverado: Hustling Real Estate Deals
0 of 04 min
47

Zombie S&Ls: Life after Death
0 of 05 min
48

The Crash of 1987
0 of 07 min
49

Replication, Arbitrage, and the Creation of Portfolio Insurance
0 of 07 min
50

The Market Cools in October 1987
0 of 08 min
51

Was Portfolio Insurance at Fault for the Crash?
0 of 06 min
52

Japan’s Lost Decade
0 of 08 min
53

The Wild Ride Begins
0 of 04 min
54

Japan’s Nikkei 225 Index
0 of 08 min
55

The End of the Convoy System
0 of 05 min
56

Lessons from the Lost Decade
0 of 03 min
57

Bankers Trust Swaps
0 of 04 min
58

Certainty vs. Uncertainty
0 of 08 min
59

Fixed vs. Floating
0 of 04 min
60

An Interesting Formula
0 of 05 min
61

Changing the Culture at Bankers Trust
0 of 07 min
62

Asia, Greece, and Global Contagion
0 of 06 min
63

The Three Sources of Demand for the Thai Baht
0 of 07 min
64

The Undervaluation-Overvaluation Equation
0 of 07 min
65

Thailand’s Boom before the Bust
0 of 04 min
66

The Orange County, California, Bankruptcy
0 of 07 min
67

Orange County Discovers Repos
0 of 04 min
68

Robert Citron Leverages Up
0 of 07 min
69

Inverse Floaters: When Rates Rise
0 of 09 min
70

The Dotcom Bubble
0 of 09 min
71

Intangible Value and Technology
0 of 04 min
72

Misunderstanding P = D/(r - g)
0 of 05 min
73

The Theory of Growing First, Profiting Later
0 of 09 min
74

Rogue Traders at SocGen and Barings
0 of 04 min
75

Jérôme Kerviel and Société Générale
0 of 05 min
76

Jerome Kerviel’s Secret Strategy
0 of 05 min
77

Nick Leeson and Barings Bank
0 of 09 min
78

Do Rogue Traders Operate Alone?
0 of 03 min
79

Unhedged! Long-Term Capital Management
0 of 07 min
80

Meriwether’s Dream Team
0 of 07 min
81

The Fall of Long-Term Capital
0 of 11 min
82

The London Whale and Value at Risk
0 of 10 min
83

Markets Aren’t Models
0 of 05 min
84

London Whale Affair
0 of 12 min
85

The Goldilocks Economy and Three Bads
0 of 08 min
86

The Global Money Supply Expands
0 of 05 min
87

Opportunities for Mischief
0 of 09 min
88

A Flawed Belief and Light Touch
0 of 04 min
89

Subprime Debt and the Run on Wall Street
0 of 04 min
90

Birth of Subprime
0 of 03 min
91

New Century: A Domino Falls
0 of 15 min
92

Allowing Lehman to Fail
0 of 03 min
93

China’s Shadow Banks
0 of 06 min
94

The Great Recession Hits China’s Exports
0 of 09 min
95

Signaling Danger: Credit-to-GDP Ratio
0 of 07 min
96

Will China Bail Itself Out Again?
0 of 05 min
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