Studied by 2 peopleJohn Law
In 1705, ____, a Scottish economist, came up with a plan to change the banking system in Scotland in a big way to reduce public debt and boost the economy.
Duke of Orléans
Law's theory was turned down, but in 1716, the _____, who was in charge of the young King Louis XV, asked him to try it out in France, which was on the verge of going bankrupt.
banknotes
Law started a national bank that took deposits of gold and silver and gave out _____in exchange.
Mississippi River valley
In 1717, he started a company that had the exclusive right to develop France's US territories in the ______.
Mississippi Scheme
He came up with the "____." In exchange for state-issued public securities, he sold shares in his company whose value he had inflated by a lot.
French currency
The collapse of the scheme resulted in the bankruptcy of many investors, as well as massive inflation and a devaluation of the ____.
Mississippi Scheme
This led to increased political and economic instability, and caused a great deal of hardship for the citizens of France.
1630s
Speculators exchange tulip bulbs for enormous quantities of money at the Dutch Republic's "tulip mania" peak, until the market collapses over night.
1720
The British South Sea Company, which does business with Spanish America, assumes responsibility for the country's debt.
1849
William Thompson defrauds strangers on New York City's streets in a number of different ways.
tulip mania
Speculators exchange tulip bulbs for enormous quantities of money at the Dutch Republic's "____" peak, until the market collapses over night.
British South Sea Company
The ______, which does business with Spanish America, assumes responsibility for the country's debt. However, it and its shares fall, ruining thousands of individuals from all socioeconomic strata.
William Thompson
He defrauds strangers on New York City's streets in a number of different ways. Because of his accomplishments, a newspaper editor came up with the moniker "Confidence Man," or simply "con man."
robber barons
America's financial markets were uncontrolled in the late 19th century, and certain individuals known as "_____" used unscrupulous tactics to amass enormous fortunes.
James Fisk and Jay Gould
two businessmen who wanted to control the market, hid enormous sums of gold in 1869.
1869
In order to successfully purchase back the money, Ulysses S. Grant's administration donated the gold in ____.
Black Friday
The market plummeted as a result of the deflated gold price on September 24, 1869, often known as "___."
September 24, 1869
The market plummeted as a result of the deflated gold price on ____, often known as "Black Friday."
Gold Reserve Act of 1934
This legislation was designed to protect the US gold supply and prevent a similar scheme from occurring again
Securities Exchange Act of 1934
The scandal also led to the passage of the ____, which established the Securities and Exchange Commission (SEC) and provided more oversight of the stock market.
1821–37
Gregor MacGregor, a con artist from Scotland, creates a "established colony" in Central America and recruits investors to purchase shares in it. When settlers arrive, they discover a narrow area of unspoiled bush.
1986
Ivan Boesky, a Wall Street trader, admitted in front of a US court that he used insider trading and criminal market manipulation to amass his $200 million personal fortune.
1992
Harshad Mehta guarantees loans totaling $740 million on the Bombay Stock Exchange using forgeries of bank receipts. Then, in an effort to avoid being charged, he buys politicians.
Gregor MacGregor
a con artist from Scotland, creates a "established colony" in Central America and recruits investors to purchase shares in it. When settlers arrive, they discover a narrow area of unspoiled bush.
Ivan Boesky
a Wall Street trader, admitted in front of a US court that he used insider trading and criminal market manipulation to amass his $200 million personal fortune.
Harshad Mehta
guarantees loans totaling $740 million on the Bombay Stock Exchange using forgeries of bank receipts. Then, in an effort to avoid being charged, he buys politicians.
Note 
Flashcard (69)