Great financial disasters of our time

More about the book

Financial disasters have a long history, with one of the earliest documented cases being Tulipmania in the 1630s Netherlands, predating the Wall Street crash by 300 years. A similar phenomenon emerged at the end of the twentieth century with the rise of dotcom companies, driven by new technology. Both events share a common thread: they were fueled by the triumph of hope over reality, often equated with greed. Additionally, they highlight human tendencies to ignore historical lessons and overlook known facts. This concise book aims to support students of banking and finance by complementing existing textbooks. It illustrates how events can undermine theoretical knowledge, especially during financial panics when institutions may be caught off guard by circumstances beyond their control. However, in most cases discussed, signs of impending crises were evident to those willing to recognize them. The adage "there are none so blind as those who do not wish to see" aptly captures the essence of these situations, emphasizing the importance of awareness in the face of financial turmoil.