Wow. This article from 1896 sounds familiar.
A slight raise in rates by the Bank of England spooked investors that had grown accustomed to 'cheap money'.
Make sure to read this thread. Fascinating stuff.
A slight raise in rates by the Bank of England spooked investors that had grown accustomed to 'cheap money'.
Make sure to read this thread. Fascinating stuff.
"Such a system works comfortably and profitably enough as long as the 'cheap money,' which is at once its basis and its effect, continues."
Cheap Money (1896)
"Speculators [got] an effective warning that they could not count on the reality of their dream of perpetual cheap money...
And amply proved that the dangers to which a long period of abundant credit had been said to expose... markets simply shriveled up"
"Speculators [got] an effective warning that they could not count on the reality of their dream of perpetual cheap money...
And amply proved that the dangers to which a long period of abundant credit had been said to expose... markets simply shriveled up"
"Effects on markets of a trifling rise in the Bank-rate were severe enough to make one tremble at the thought of what might happen if the Stock Exchange...
In the inflated and flabby condition caused by a diet of cheap money, were called upon to face a really dangerous crisis"
In the inflated and flabby condition caused by a diet of cheap money, were called upon to face a really dangerous crisis"
