Odd Lots

Brad DeLong on the FTX Collapse and the South Sea Bubble

Dec 5, 2022

In this engaging discussion, Brad DeLong, a Professor of Economics at UC Berkeley and author of "Slouching Towards Utopia," explores the shocking connections between the FTX collapse and the historic South Sea Bubble. He delves into the psychology of financial bubbles, revealing how greed and speculation fuel modern markets. DeLong also examines the moral dilemmas behind key figures in FTX and the lessons we can learn from past manias to navigate today's volatile crypto landscape, emphasizing the cyclical nature of economic bubbles.

48:13

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Episode guests

Brad DeLong

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Episode notes

Intro

2min

Cryptocurrency Bubbles: Lessons from History

13min

Navigating the Renewable Energy Investment Landscape

2min

The Psychology of Financial Bubbles

11min

The Downward Spiral of Good Intentions: FTX and Financial Ethics

6min

Navigating the Crypto Bubble: Lessons from History

18min

Momentum Investing and Historical Bubbles

2min

We're in the aftermath of an extraordinary bubble in cryptocurrencies and the collapse of FTX is a defining chapter of the industry's turmoil. But what does history tells us about the cycle of bubbles and busts? Which past manias are the most similar to what we've just seen? In this episode, we speak with Brad DeLong, an economic historian at the University of California at Berkeley, who is also the author of the new book, "Slouching Towards Utopia: An Economic History of the Twentieth Century." He explains how the FTX saga shares shocking similarities with the story of the South Sea Company, a British endeavor that was at the center of a massive mania of speculation in the early 1700s.

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