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36

Party Favors: Buying Stocks on Margin

Lecture no. 36 from the course: Crashes and Crises: Lessons from a History of Financial Disasters

Party Favors: Buying Stocks on Margin

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
Image of Fintech, Crypto, and the Future of Disaster
Fintech, Crypto, and the Future of Disaster
0 of 11 min
2
Image of Cryptocurrencies and Blockchains
Cryptocurrencies and Blockchains
0 of 11 min
3
Image of Cryptocurrency’s Biggest Threat
Cryptocurrency’s Biggest Threat
0 of 04 min
4
Image of The Con Men Charles Ponzi and Ivar Kreuger
The Con Men Charles Ponzi and Ivar Kreuger
0 of 02 min
5
Image of Three Key Ingredients of Charles Ponzi’s Scheme
Three Key Ingredients of Charles Ponzi’s Scheme
0 of 12 min
6
Image of The Match King: Charming, Charismatic, and a Cheat
The Match King: Charming, Charismatic, and a Cheat
0 of 11 min
7
Image of Lessons from Ponzi and Kreuger
Lessons from Ponzi and Kreuger
0 of 02 min
8
Image of A Boom in Busts
A Boom in Busts
0 of 02 min
9
Image of A History of Chaos: From Tulips to 1929
A History of Chaos: From Tulips to 1929
0 of 11 min
10
Image of Unleashing Deregulation, Leverage, and Risk
Unleashing Deregulation, Leverage, and Risk
0 of 14 min
11
Image of When Society and Regulation Conflict
When Society and Regulation Conflict
0 of 00 min
12
Image of The Tulip Bubble
The Tulip Bubble
0 of 10 min
13
Image of High Fashion, Broken Bulbs, and Avid Traders
High Fashion, Broken Bulbs, and Avid Traders
0 of 07 min
14
Image of Serious Trades or Fun and Games?
Serious Trades or Fun and Games?
0 of 09 min
15
Image of The South Sea Bubble
The South Sea Bubble
0 of 06 min
16
Image of British Government Cuts a Nifty Deal
British Government Cuts a Nifty Deal
0 of 19 min
17
Image of Rational Behavior in Irrational Markets
Rational Behavior in Irrational Markets
0 of 01 min
18
Image of The Mississippi Bubble
The Mississippi Bubble
0 of 04 min
19
Image of European Adventure: The Future of Money
European Adventure: The Future of Money
0 of 20 min
20
Image of The Paper Money Experiment Ends
The Paper Money Experiment Ends
0 of 01 min
21
Image of Holes in the Ground: Mining Stock Frauds
Holes in the Ground: Mining Stock Frauds
0 of 08 min
22
Image of George Graham Rice: World-Class Liar
George Graham Rice: World-Class Liar
0 of 13 min
23
Image of Herbert Hoover’s Close Call in London
Herbert Hoover’s Close Call in London
0 of 06 min
24
Image of The Panic of 1907
The Panic of 1907
0 of 04 min
25
Image of Dual-Charter Banking: Federal and State Licenses
Dual-Charter Banking: Federal and State Licenses
0 of 04 min
26
Image of How the Gold Standard Limited Bank Liquidity
How the Gold Standard Limited Bank Liquidity
0 of 09 min
27
Image of Enter J. P. Morgan
Enter J. P. Morgan
0 of 03 min
28
Image of Morgan’s Last Hurrah
Morgan’s Last Hurrah
0 of 06 min
29
Image of Hyperinflation in Germany and Zimbabwe
Hyperinflation in Germany and Zimbabwe
0 of 05 min
30
Image of The Origins of the German (or Weimar) Hyperinflation
The Origins of the German (or Weimar) Hyperinflation
0 of 05 min
31
Image of The Role of War Reparations in German Inflation
The Role of War Reparations in German Inflation
0 of 04 min
32
Image of From High Inflation to Hyperinflation
From High Inflation to Hyperinflation
0 of 07 min
33
Image of Trouble in Zimbabwe
Trouble in Zimbabwe
0 of 08 min
34
Image of The Crash of 1929
The Crash of 1929
0 of 09 min
35
Image of Hyperinflation’s Common Denominator
Hyperinflation’s Common Denominator
0 of 03 min
36
Image of Party Favors: Buying Stocks on Margin
Party Favors: Buying Stocks on Margin
0 of 03 min
37
Image of Stock Pools: Swimming with Sharks
Stock Pools: Swimming with Sharks
0 of 04 min
38
Image of From Optimism to Overvaluation
From Optimism to Overvaluation
0 of 09 min
39
Image of The Great Contraction of 1931–1933
The Great Contraction of 1931–1933
0 of 06 min
40
Image of 1930–1931: Regional Banking Panics
1930–1931: Regional Banking Panics
0 of 06 min
41
Image of Britain Abandons the Gold Standard
Britain Abandons the Gold Standard
0 of 06 min
42
Image of A New Era of Stability
A New Era of Stability
0 of 10 min
43
Image of The Savings and Loan Crisis
The Savings and Loan Crisis
0 of 07 min
44
Image of Overregulated? Or Out of Control?
Overregulated? Or Out of Control?
0 of 06 min
45
Image of Texas, Oil, and a Boom in Trouble
Texas, Oil, and a Boom in Trouble
0 of 05 min
46
Image of Silverado: Hustling Real Estate Deals
Silverado: Hustling Real Estate Deals
0 of 04 min
47
Image of Zombie S&Ls: Life after Death
Zombie S&Ls: Life after Death
0 of 05 min
48
Image of The Crash of 1987
The Crash of 1987
0 of 07 min
49
Image of Replication, Arbitrage, and the Creation of Portfolio Insurance
Replication, Arbitrage, and the Creation of Portfolio Insurance
0 of 07 min
50
Image of The Market Cools in October 1987
The Market Cools in October 1987
0 of 08 min
51
Image of Was Portfolio Insurance at Fault for the Crash?
Was Portfolio Insurance at Fault for the Crash?
0 of 06 min
52
Image of Japan’s Lost Decade
Japan’s Lost Decade
0 of 08 min
53
Image of The Wild Ride Begins
The Wild Ride Begins
0 of 04 min
54
Image of Japan’s Nikkei 225 Index
Japan’s Nikkei 225 Index
0 of 08 min
55
Image of The End of the Convoy System
The End of the Convoy System
0 of 05 min
56
Image of Lessons from the Lost Decade
Lessons from the Lost Decade
0 of 03 min
57
Image of Bankers Trust Swaps
Bankers Trust Swaps
0 of 04 min
58
Image of Certainty vs. Uncertainty
Certainty vs. Uncertainty
0 of 08 min
59
Image of Fixed vs. Floating
Fixed vs. Floating
0 of 04 min
60
Image of An Interesting Formula
An Interesting Formula
0 of 05 min
61
Image of Changing the Culture at Bankers Trust
Changing the Culture at Bankers Trust
0 of 07 min
62
Image of Asia, Greece, and Global Contagion
Asia, Greece, and Global Contagion
0 of 06 min
63
Image of The Three Sources of Demand for the Thai Baht
The Three Sources of Demand for the Thai Baht
0 of 07 min
64
Image of The Undervaluation-Overvaluation Equation
The Undervaluation-Overvaluation Equation
0 of 07 min
65
Image of Thailand’s Boom before the Bust
Thailand’s Boom before the Bust
0 of 04 min
66
Image of The Orange County, California, Bankruptcy
The Orange County, California, Bankruptcy
0 of 07 min
67
Image of Orange County Discovers Repos
Orange County Discovers Repos
0 of 04 min
68
Image of Robert Citron Leverages Up
Robert Citron Leverages Up
0 of 07 min
69
Image of Inverse Floaters: When Rates Rise
Inverse Floaters: When Rates Rise
0 of 09 min
70
Image of The Dotcom Bubble
The Dotcom Bubble
0 of 09 min
71
Image of Intangible Value and Technology
Intangible Value and Technology
0 of 04 min
72
Image of Misunderstanding P = D/(r - g)
Misunderstanding P = D/(r - g)
0 of 05 min
73
Image of The Theory of Growing First, Profiting Later
The Theory of Growing First, Profiting Later
0 of 09 min
74
Image of Rogue Traders at SocGen and Barings
Rogue Traders at SocGen and Barings
0 of 04 min
75
Image of Jérôme Kerviel and Société Générale
Jérôme Kerviel and Société Générale
0 of 05 min
76
Image of Jerome Kerviel’s Secret Strategy
Jerome Kerviel’s Secret Strategy
0 of 05 min
77
Image of Nick Leeson and Barings Bank
Nick Leeson and Barings Bank
0 of 09 min
78
Image of Do Rogue Traders Operate Alone?
Do Rogue Traders Operate Alone?
0 of 03 min
79
Image of Unhedged! Long-Term Capital Management
Unhedged! Long-Term Capital Management
0 of 07 min
80
Image of Meriwether’s Dream Team
Meriwether’s Dream Team
0 of 07 min
81
Image of The Fall of Long-Term Capital
The Fall of Long-Term Capital
0 of 11 min
82
Image of The London Whale and Value at Risk
The London Whale and Value at Risk
0 of 10 min
83
Image of Markets Aren’t Models
Markets Aren’t Models
0 of 05 min
84
Image of London Whale Affair
London Whale Affair
0 of 12 min
85
Image of The Goldilocks Economy and Three Bads
The Goldilocks Economy and Three Bads
0 of 08 min
86
Image of The Global Money Supply Expands
The Global Money Supply Expands
0 of 05 min
87
Image of Opportunities for Mischief
Opportunities for Mischief
0 of 09 min
88
Image of A Flawed Belief and Light Touch
A Flawed Belief and Light Touch
0 of 04 min
89
Image of Subprime Debt and the Run on Wall Street
Subprime Debt and the Run on Wall Street
0 of 04 min
90
Image of Birth of Subprime
Birth of Subprime
0 of 03 min
91
Image of New Century: A Domino Falls
New Century: A Domino Falls
0 of 15 min
92
Image of Allowing Lehman to Fail
Allowing Lehman to Fail
0 of 03 min
93
Image of China’s Shadow Banks
China’s Shadow Banks
0 of 06 min
94
Image of The Great Recession Hits China’s Exports
The Great Recession Hits China’s Exports
0 of 09 min
95
Image of Signaling Danger: Credit-to-GDP Ratio
Signaling Danger: Credit-to-GDP Ratio
0 of 07 min
96
Image of Will China Bail Itself Out Again?
Will China Bail Itself Out Again?
0 of 05 min

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