3 chapters across the catalog
The European financial situation deteriorates as Moody's threatens to downgrade French banks, which would trigger massive fund withdrawals. In Athens, strikes and violence continue as Greek bond yields reach extreme levels, effectively signaling a one-sided gamble on the country's solvency. The hosts discuss the difficulty for amateur investors to hedge against these collapses using credit default swaps.
The Ascent of Money, French Revolution and John Law
The Channel 4 documentary series The Ascent of Money details how Scotsman John Law established the first French central bank and triggered a massive financial bubble in the early 1700s. Law's use of paper shares and the subsequent collapse of the Mississippi Company mirror modern economic crises. The historical parallels include the East India Company's role in the development of the first stock markets in Amsterdam.
UK Telethons, Executive Bailout Resentment
The success of UK charity telethons like "Children in Need" is contrasted with the massive 600 billion euro bank bailouts funded by taxpayers. There is a warning that continued abuse of the system by wealthy executives could lead to civil unrest similar to the French Revolution, where the public "storms the mansions."
