Thomas Levenson "Money for Nothing" (Random House, 2020)
New Books in Economics
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Liquidity - A Brief History
In 1719, the South Sea company does another one of these debt for equity swaps with a fair for a million pounds or so of a particular loan that was issued a few years before. And it works fine. The price of South Sea stock doesn't change very much. There's this sort of expansion of the company and a reduction in its interest rate. But then they say we're going to, you know, just like every previous bit of financial engineering that they've done... It seems to repeat itself with the same madness over and over again.
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