Manchester University Press
5 Wall Street and other casinos
Abstract
History and the media between them have spread the idea far and wide that Wall Street, or perhaps stock exchanges generally, are the weakest point in the international financial system. If there is going to be trouble in the world market economy, that is where it will start. This chapter examines whether this is a correct reading of history and the right conclusion to draw from the developments. Besides the quick recovery of the American and world economy after Black Monday, the other argument on the side of optimism has been that of geography. Economic factors alone cannot explain why in the space of few years the optimism of the speculative boom turned to the pessimism of the depression. The chapter suggests the main points of similarity and of difference between the international financial and economic system in the 1990s as compared with the 1930s.
Abstract
History and the media between them have spread the idea far and wide that Wall Street, or perhaps stock exchanges generally, are the weakest point in the international financial system. If there is going to be trouble in the world market economy, that is where it will start. This chapter examines whether this is a correct reading of history and the right conclusion to draw from the developments. Besides the quick recovery of the American and world economy after Black Monday, the other argument on the side of optimism has been that of geography. Economic factors alone cannot explain why in the space of few years the optimism of the speculative boom turned to the pessimism of the depression. The chapter suggests the main points of similarity and of difference between the international financial and economic system in the 1990s as compared with the 1930s.
Chapters in this book
- Front matter i
- Contents v
- Introduction to the new edition of Mad money vii
- Acknowledgements xvii
- List of abbreviations xviii
- 1 The casino image gone mad 1
- 2 Innovations 22
- 3 Political underpinnings: the US–Japan axis 43
- 4 Political underpinnings: disunited Europe 60
- 5 Wall Street and other casinos 78
- 6 The debtors 97
- 7 Finance and crime 123
- 8 Managing mad money – national systems 139
- 9 Our international guardians 158
- 10 So what? 179
- Bibliography 192
- Index 203
Chapters in this book
- Front matter i
- Contents v
- Introduction to the new edition of Mad money vii
- Acknowledgements xvii
- List of abbreviations xviii
- 1 The casino image gone mad 1
- 2 Innovations 22
- 3 Political underpinnings: the US–Japan axis 43
- 4 Political underpinnings: disunited Europe 60
- 5 Wall Street and other casinos 78
- 6 The debtors 97
- 7 Finance and crime 123
- 8 Managing mad money – national systems 139
- 9 Our international guardians 158
- 10 So what? 179
- Bibliography 192
- Index 203
