Summary of William Quinn & J. D. Turner's Boom and Bust

By IRB Media

Please note: This is a companion version & not the original book. Book Preview:

#1 The difference between the great classical musician George Frideric Handel and the pop singer Shane Filan is that Handel was able to make a handsome profit when he sold his shares in the South Sea Company before the end of June 1719. Filan, on the other hand, was bankrupted when the housing bubble collapsed.

#2 There are three ways in which bubbles can be useful. They may facilitate innovation and encourage more people to become entrepreneurs, which ultimately feeds into future economic growth. They may provide capital for technological projects that would not be financed in a fully efficient financial market.

#3 The word bubble is used today by commentators and news media to describe any instance in which the price of an asset appears to be slightly too high. However, this definition is controversial among academic economists, who view a bubble as a non-explanation of a financial phenomenon.

#4 The first side of our bubble triangle is marketability, or the ease with which an asset can be freely bought and sold. This is often affected by the legality of an asset, its divisibility, and how easily it can be bought and sold.

• Language: English
• Publisher: IRB Media
• Release date: Jun 10, 2022
• ISBN: 9798822538337

IRB Media

With IRB books, you can get the key takeaways and analysis of a book in 15 minutes. We read every chapter, identify the key takeaways and analyze them for your convenience.

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Insights on J. D. Turner's Boom and Bust

Contents

Insights from Chapter 1

Insights from Chapter 2

Insights from Chapter 3

Insights from Chapter 4

Insights from Chapter 5

Insights from Chapter 6

Insights from Chapter 7

Insights from Chapter 8

Insights from Chapter 9

Insights from Chapter 10

Insights from Chapter 11

Insights from Chapter 12

Insights from Chapter 1

#1

The difference between the great classical musician George Frideric Handel and the pop singer Shane Filan is that Handel was able to make a handsome profit when he sold his shares in the South Sea Company before the end of June 1719. Filan, on the other hand, was bankrupted when the housing bubble collapsed.

#2

There are three ways in which bubbles can be useful. They may facilitate innovation and encourage more people to become entrepreneurs, which ultimately feeds into future economic growth. They may provide capital for technological projects that would not be financed in a fully efficient financial market.

#3

The word bubble is used today by commentators and news media to describe any instance in which the price of an asset appears to be slightly too high. However, this definition is controversial among academic economists, who view a bubble as a non-explanation of a financial phenomenon.

#4

The first side of our bubble triangle is marketability, or the ease with which an asset can be freely bought and sold. This is often affected by the legality of an asset, its divisibility, and how easily it can be bought and sold.

#5

The fuel for the bubble is money and credit. A bubble can only occur when the public has sufficient capital to invest in the asset, and is therefore more likely to invest when there is abundant money and credit.

#6

The spark that starts a bubble is a mystery. It can come from two sources: technological innovation, or government policy. When economic models of bubbles fail to explain when and why bubbles start, it is because they do not take into account the role of government policies.

#7

Bubbles end when they run out of fuel, which is usually money and credit. When that happens, the market interest rate or central bank tightening causes the amount of credit to decrease, which makes borrowing to invest in an