Brad DeLong on the FTX Collapse and the South Sea Bubble

Odd Lots

Bloomberg

News, Investing, Business, News Commentary, Business News

4.4 • 1.6K Ratings

🗓️ 5 December 2022

⏱️ 53 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

We're in the aftermath of an extraordinary bubble in cryptocurrencies and the collapse of FTX is a defining chapter of the industry's turmoil. But what does history tells us about the cycle of bubbles and busts? Which past manias are the most similar to what we've just seen? In this episode, we speak with Brad DeLong, an economic historian at the University of California at Berkeley, who is also the author of the new book, "Slouching Towards Utopia: An Economic History of the Twentieth Century." He explains how the FTX saga shares shocking similarities with the story of the South Sea Company, a British endeavor that was at the center of a massive mania of speculation in the early 1700s.

See omnystudio.com/listener for privacy information.

Transcript

Click on a timestamp to play from that location

0:00.0	Do you know what your interest rate is on your savings account?
0:02.7	I bet it's lower than you think.
0:04.4	Go ahead and look.
0:05.2	And in the meantime, I'll tell you about US Treasury bills on public.
0:09.2	As of 9-1-2023, you could earn an annualized 5.5% yield with T-bills when held to maturity.
0:16.2	That's the highest rate on six-month Treasury bills since the year 2000.
0:20.0	Go to public.com slash T-Bill podcast to get started.
0:23.8	This is a paid endorsement by public.com,
0:26.0	fees and conditions apply.
0:27.3	Treasury accounts at public.com or through Gico Securities Inc.
0:30.4	Member Finra and SIPC.
0:31.9	Not FDIC-insured?
0:33.1	No bank guarantee.
0:34.0	May lose value.
0:34.8	Full disclosures can be found at www.public.com slash T-Bill podcast.
0:40.4	This is Lisa Brahmoyz here to tell you about another podcast we think you'll enjoy listening to.
0:45.3	Bloomberg Surveillance.
0:46.7	Join Tom Keane, Jonathan Farrow, and me every weekday for a unique perspective on the
0:51.2	world's of economics, finance, and investment.
0:53.6	Plus, insight from the names that shaped the world's markets.
0:56.8	Savage Solomon, the Goldman Sachs, CEO.
0:58.8	Ian Bremmer, of Eurasia Group.
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from Bloomberg, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of Bloomberg and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.