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Panic, Prosperity, and Progress: Five Centuries of History and the Markets

Book Description

A detailed guide to financial market performance during financial crises

With the financial markets seemingly careening from one crisis to another, it's vital for today's investors and traders to have an historical perspective on market performance during times of great turmoil. In this book, Tim Knight provides an exhaustive analysis of financial market behavior prior, during, and following tumultuous events since 1600.

Making copious use of charts and basic technical analysis, Knight demonstrates how external shocks tend to create extreme reactions in the financial markets and how these predictable reactions provide opportunities for investors and traders to profit. Knight traverses five centuries of financial market history, from Tulipmania in the 1600s to the contemporary sovereign debt crisis. He looks at each event from the prism of the financial markets, examining the market climate prior to the event, during the event, and following the event.

  • Draws essential lessons from history providing investors and traders with guidelines to better navigate markets in today's tumultuous times

  • Offers valuable insights on understanding and anticipating market responses to shocks and crises

  • Companion website with a Q&A section contains charts from key moments in past financial crises and asks readers to choose whether to go long, short, or step aside

If you're looking for a better way to make it today's dynamic markets, look no further than this timely book.

Note: The ebook version does not provide access to the companion files.

Table of Contents

  1. Cover
  2. Half Title
  3. Series Page
  4. Title Page
  5. Copyright Page
  6. Dedication
  7. Preface
  8. Chapter 1: Tulip Madness
    1. An Introduction to the Flower in Question
    2. Rise of the Tulip
    3. Market Frenzy
    4. The Bloom Is off the Rose
    5. The Compost Heap
  9. Chapter 2: The Mississippi Scheme
    1. Law’s Early Life
    2. Franco Finances
    3. Paper Money
    4. A Golden Opportunity
    5. An Expansion of Power
    6. Absorption and Ascent
    7. The Frenzy Begins
    8. A New Venue and a Plateau
    9. Cracks in the Mississippi
    10. Economic Dictatorship
    11. A Rush and a Crush
    12. Aftereffects
  10. Chapter 3: The South Sea Bubble
    1. Sovereign Debt and an Idea
    2. A Useless Monopoly
    3. The Bubble Companies
    4. Newton’s Folly
    5. Whirlpool in the South Sea
  11. Chapter 4: American Revolution in the Colonies
    1. Prosperous Colonies
    2. Intolerable Changes
    3. Protests
    4. Continental Paper
    5. Peaceful Resolution
    6. Economic Constitution
  12. Chapter 5: The Panic of 1837
    1. The Nation’s Central Bank
    2. Jackson’s Mistrust of Paper
    3. Biddle versus Jackson
    4. Death of the Second Bank
    5. Waging a War with Words
    6. A Flood of Paper for Land
    7. The Endangered Specie Act
  13. Chapter 6: California Gold
    1. An Empty State
    2. A Challenging Trek
    3. Disappointed Latecomers
    4. A Distorted Economy
    5. On the Farm
  14. Chapter 7: The American Civil War
    1. Antebellum Nation
    2. The Modern North
    3. The Confederacy
    4. The Greybacks
    5. Bonds before Bombs
    6. Legal Tender
    7. Gold and a Hoax
    8. A Nation Transformed
  15. Chapter 8: The Panic of 1893
    1. The Robber Barons
    2. Silver and Gold
    3. Panic Sets in
    4. Cleveland and Morgan
    5. The Man behind the Curtain
  16. Chapter 9: The Rich Man’s Panic of 1907
    1. A Simpler Time
    2. The Copper Magnate
    3. Cornering United
    4. The Bank Runs Begin
    5. The Stock Exchange Teeters
    6. Roosevelt’s Reluctant Aid
    7. Jekyll Island
  17. Chapter 10: Billion-Dollar Bread—The Weimar Hyperinflation
    1. Funding a War
    2. An Expensive Peace
    3. The Printing Presses
    4. Widespread Suffering
    5. A Nation of Speculators
    6. The Retenmark Miracle
    7. Lingering Aftereffects
  18. Chapter 11: The Roaring Twenties
    1. The Great War’s End
    2. Lower Taxes, Higher Growth
    3. Consumerism Blossoms
    4. The Florida Land Rush
    5. A Nation of Speculators
  19. Chapter 12: The Great Depression
    1. The Orgy of Speculation
    2. Stock Mania
    3. The Market Cracks Wide Open
    4. Smoot-Hawley Tariff
    5. Business Council
    6. The Slide Resumes
    7. The Golden Lattice
    8. The Bonus Army
    9. Regime Change
    10. Grinding to a Halt
    11. Shuttering the Banks
    12. Putting People Back to Work
    13. A Regulatory Framework
    14. The Depressing Facts
    15. A Double Dip
    16. The World Returns to War
  20. Chapter 13: Postwar Prosperity
    1. A Return to the Depression?
    2. The Great Transition
    3. Leader of the Free World
    4. Lifestyle Transition
    5. End of an Era
  21. Chapter 14: Energy, Politics, and War
    1. The Birth of OPEC
    2. War and Embargo
    3. Don’t Be “Fuelish”
    4. Iran and Iraq
    5. Invasion of Kuwait
    6. The Hundred-Hour War
    7. An Uneasy Partnership
  22. Chapter 15: Precious Metals and the Destruction of a Billionaire
    1. Melting Down Saint-Gaudens
    2. The Hunt Fortune
    3. The Hunt Children
    4. The Next Best Thing to Gold
    5. Muammar Gaddafi
    6. The Accumulation Accelerates
    7. A Rising Asset
    8. Hostile Management and Friendly Arabs
    9. Changing the Rules of the Game
    10. Putting an End to It
    11. Silver Thursday
    12. The Bailout
    13. Gold Riding Shotgun
    14. The Double Eagle Returns
    15. Bankrupt Billionaires
  23. Chapter 16: Latin American Debt Crisis
    1. A Healthy Development
    2. Oil Money Hunts for a Home
    3. Interest Rate Shock
    4. Baker and Brady
    5. Hyperinflation
    6. Subprime Parallels
  24. Chapter 17: The Reagan Revolution and Crash
    1. The Death of Inflation
    2. Rebirth of the Stock Market
    3. A Business-Friendly Nation
    4. Bonds and Inflation Signal a Change
    5. Three Days in October
    6. A Worrisome Weekend
    7. Black Monday
    8. Turnaround Tuesday
    9. Sorting Out the Reasons
  25. Chapter 18: The Rising and Setting Sun of Japan
    1. The Early Economic Structure
    2. The Aftershocks of War
    3. The United States Rebuilds
    4. From Dodge to Independence
    5. Thing-Making
    6. The Soaring Sixties
    7. OPEC and Little Japanese Cars
    8. Electronics Giant
    9. The Bubble Swells
    10. Unparalleled Property Prosperity
    11. The Japan That Can Say No
    12. The Big Crash
    13. Damaging Demographics
    14. The Lost Decades
    15. A Perpetual State of Recovery
  26. Chapter 19: The Savings and Loan Debacle
    1. Good Intentions and Honest Growth
    2. Loaning to Lose
    3. Overly Deregulating
    4. The Real Estate Boom Goes Bust
    5. Keating’s Lincoln
    6. A New Foundation
  27. Chapter 20: Fall of the Soviet Union
    1. Back in the USSR
    2. Gorbachev
    3. The August Coup
    4. Private Enterprise
    5. Satellites Adrift
  28. Chapter 21: The Asian Contagion
    1. The Booming Decades
    2. Liberal Lending
    3. A Subtle Slowdown
    4. The Thai Baht Bomb
    5. Instantly Expensive
    6. The Big Economies Join the Drop
    7. The World Turns Another Corner
  29. Chapter 22: Russian Crisis of 1998
    1. After the Fall
    2. Loans Instead of Growth
    3. Welcome to the Club
    4. Strains in the Kremlin
    5. Moratorium
    6. The Have-Nots
    7. LTCM in America
    8. Russian Resurgence
  30. Chapter 23: Captured by the Net
    1. Living History
    2. Fuel for the Fire
    3. The Foundation is Laid
    4. Raging Bulls
    5. Netscape
    6. Yahoo! and Irrational Exuberance
    7. The Cackle Heard around the World
    8. The Madness Goes Exponential
    9. A Las Vegas in Every Home
    10. Century’s End
    11. Analysts as Oracles
    12. Mountains of Money
    13. The WebVan Peak
    14. An Adoring Press
    15. Peak and Fall
    16. Burning Up
    17. Startup.com—The Movie
    18. Horror and Terror
    19. Picking Up the Pieces
    20. The Bubble’s Legacy
  31. Chapter 24: The Great Recession
    1. The American Dream
    2. A Yield-Seeking Ocean of Money
    3. Unreliable Ratings
    4. Bubble Denial
    5. Financial Fissures
    6. Fiscal Free-Fall
    7. Bailout
    8. A Nation on the Mend
  32. Chapter 25: History in the Making
    1. The Ties That Bind
    2. What Makes an Event a Historical Force?
    3. The Road Ahead
  33. About the Author
  34. Index