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Banking 2.NO!
Why Learning From The Past Is Important For Our Future Owen Sims // TEDxCQ
Banking 2.NO! Why Learning From The Past Is Important For Our - - PowerPoint PPT Presentation
Banking 2.NO! Why Learning From The Past Is Important For Our - - PowerPoint PPT Presentation
Banking 2.NO! Why Learning From The Past Is Important For Our Future Owen Sims // TED x CQ What are mankinds greatest inventions? Mesopotamia United Kingdom (5,000 BC) (2,014 AD) Those who do not learn from history are
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United Kingdom (2,014 AD) Mesopotamia (5,000 BC)
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“Those who do not learn from history are doomed to repeat it.”
Edmund Burke
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Subprime Crisis
2007/08
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1837 1792 1825
South Sea Bubble Panic of 1792
Latin American Crisis
The Cotton Crisis
1720
Railway Mania
The Long Depression
1857 1873
Bankers’ Panic
1907
1929
Great Depression Asian Crisis
1997
1973/74
Oil Crisis Dotcom Crash
2001 1987
Black Monday
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17.5 35 52.5 70
1825 1930
1792 2012
1857 2007
#BankFailures
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17.5 35 52.5 70
1825 1857 1930 2007
1792 2012
#BankFailures
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1825 1837 1847 Latin America Crisis The Cotton Crisis Railroad Crises
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1857: HyperConnected World
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Characteristics of 1857
(A) Bank-run (C) Financial Innovation (D) New technologies (B) Low interest rates (E) Insufficient Regulation
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(A) Bank-run (C) Financial Innovation (D) New technologies (B) Low interest rates (E) Insufficient Regulation
Characteristics of 2007
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A Cause of Crises
‘Banks are prone to instability whenever shareholders do not face much risk because their liability is limited and their paid-up capital is low relative to deposits. When this is so, management will engage in risk-
- shifting. They will lend excessively.
They will gamble in riskier ventures.’ John Turner, “Banking in Crisis”, 2014
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