Our third instalment of historic follies charts banking crises in 14th century Florence and 19th century Brazil, an 1869 attempt to corner the gold market, Australia’s nickel boom of 1969 and the Russian Rouble crisis of 1998.
5 July 2018
- 1 minute read
Busting the Brazilian Bronco: The Enchilamento of 1889-1991
When Brazil’s government in 1889 made it easier for banks to lend, intermediaries made hay before the administration was ousted in a coup and disastrous capital flight ensued. New credit regulation introduced subsequently to reinvigorate the economy simply blew another bubble that burst when foreign investors again pulled back.
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There was a fever, a madness, money spread itself around here in a real flood. One was given the impression that everyone had gone insane.