AsiniusNaso The big difference of then and now though is any ruler taking a vacation... isn't taking a vacation. At least not like we do. They will be out on the golf course, at their ranch, or where ever and all the while aids are running up to them almost non-stop with stuff to sign, decisions to make, and so on before going back to their email, phones, and where ever they came from.
AsiniusNaso Fun fact: George Bush is ranked by historians as by far one of the worst presidents of all time for reasons both partisan and based on objective leadership. He spent A Year and A Half on his 8-year presidency on vacation.
Even to the very end of the stock's worth , Blunt was fighting to preserve his stock. Even though he's utterly deplorable, you do have to admire that determination to fight against odds that are insurmountable. If only his financial brilliance was used in a way that wasn't blatantly illegal and immoral.
Seriously, I want to meet the hype man that Blunt hired to pass this madhouse idea off as brilliant. There is absolutely zero points where anything he did seemed like a smart thing to get behind.
ClockworkHeart42 It was mentioned he hired the guy who wrote Robinson Crusoe to help market the South Sea Company. Also, remember, the East Indian Trading company already existed, which had made their original investors VERY rich men. Too be part of, what seemed at the time, to be the next East India Trading Company was too good a deal too pass up. It would be like if all the news outlets talked about a new computer company as if it was going to be the next Apple, with a brand new operating system that completely surpasses the capabilities of IOS or Windows. Sell that right, and people will launch onto those early stocks like madmen.
ClockworkHeart42 Well lots of people became millionaires with this kind of scam in the past two decades, it's pretty common actually, fake it then make it.
A, this little scam was advertised as the next East India Company (which was legitimately massively successful), and might have actually gone that way, if Spain didn’t prevent it from doing any actual trading, forcing Blunt to do all his stock price shenanigans. B, as for Blunt himself, you’re talking about the sort of guy who sees his own government foundering in debt and goes in with the top priority of getting himself rich. This sort of short-sighted scammery is what you get with a guy desperate to fix the debt he saddled himself with, and quite knowledgeable in how to get idiots to throw their disposable dollars where their more valuable sense *ba dum tss* wouldn’t go. So the old saw goes, it seemed like a good idea at the time.
AsianSensation Studios Not that hard to believe - Keynesian Economics is basically promising riches from nothing, and plenty of people buy into that. If you fudge the numbers enough and leave details out, you can make a whole lot of money off of absolutely nothing... For a while, at least, until the bubble bursts.
Blunt seemed to work very hard and smart to get the share prices up. Maybe if he'd worked hard and smart at, say, trading in the South Sea, this would all have gone a lot better.
Keynesianism tells us that we don`t need to let people starve while wheat rots in the fields, just because the insanity of the market has decided to do so. Capitalism tends to eat itself alive through trusts, union-busting and other forms of labor supression. In doing so it destroys people`s buying power, disincentivizing investment, which causes even more poverty and low buying power. Which is, among other things, what caused the Great Depression. www.pbs.org/wgbh/americanexperience/features/introduction/minewars-introduction/ Sure, at some point it ends on its own. The starvation wages and stupendous reserves of capital eventually cancel out the miserable buying power. But why wait? It`s a vicious cycle that can be broken by the government investing in the economy without expecting profits for itself, just expecting the economy to buck up and allow it to break even through improved tax revenue.
Well, it's good that people don't buy into ridiculous hype campaigns that offer unrealistic promises these days... ... ... ... *looks around* ... God dammit.
Myst Lunarbane You still need blame yourself too, if you still fall for the hype.. I think he not just talking about market, but, game pre order. When i said, know the felling, i mean, i fucking pre orded Alien Colonial Marines.
Yes.. but this is like Enron on a scale that literally four times the size of ALL THE MONEY IN ENGLAND! There has to be devastation on a level usually reserved for weapons of mass destruction.. and foreign powers threatening war of England defaulted on its debt. It's like Bernie Maddof owned the entire country.. I'm mostly curious how England out out of this mess.
BlackfootFerret I'm interested too, but I'm thinking it has something to do with debt and money not being real. Both concepts are based on human imagination. If you have a powerful enough army, you can just refuse to pay your debts. It might prevent people from wanting to lend to you in future, but in this kind of situation it might be the best possible outcome. Economies are really based on the goods and services an area (or this case a country) has available to the people in it. The rest is just imaginary, like the value of South Sea Stocks.
Well, I'm especially interested because it seems like almost every country in the world is heavily in debt, and the US might default one day if we don't get out debt under control. So seeing how England survives a financial crisis of this size is more than just a detached curiosity.
I'm actually anxious to hear the last part. The history topics you cover are ones that never cropped up in my time at school, and never entered into any conversations whereby I might be interested to research them myself. I really enjoy Extra History for bringing these topics up.
William B sounds more like Enron to me, with the entire company's future being based around the idea that the stock would never fall, stock prices bein heavily inflated on a company that wasn't making any money, and the executive selling off his shares right before the company goes into freefall while telling everyone on the outside that everything was fine . The housing crisis was a bit more complex because all of it hinged on basically all of these big institutions being financially linked in numerous complex ways
DoYouReadSutterCane There was also the whole derivatives market, where the banks knew some of their loans were toxic and deliberately bet against them.
Aegix Drakan Ah, yes, the derivatives market. Now that was just VILE. During the oversight interviews, several of those responsible for that kind of policy even defended it as good business practice. :P
TheBespectacledN00b This is part of Europe we're talking about. I've seen fist fights break out between European students here in Canada over stuff that happened more than 1000 years ago...
RealLuckless Yes, and I am British. Trust me, a lot of the stuff that happened then has been forgotten over here. For my generation at least, history teaching was "Hitler and the Henries"
The history of the south sea's bubble can make for a good dark comedy movie, it could fit well in the style of the "wolf of wall street" or "the death of stalin"
FlyingJetpack1 Bitcoin has had several price bubbles already, and it shows no sign of any bubble causing the industry to collapse. After every single bubble, the user base has continued to grow and the amount of money being invested also continues to grow. It's what you call a Fractal Bubble Pattern, which relates to the true ebb and flow of excitement over time in a fledgling industry. This bears no similarity to how the South Sea Bubble worked.
I'm still getting lost in the economics... I'll probably need to rewatch this a couple of times after its over and take notes before I understand what happened.
LT Gen Klink That's basically all of life, really. It's about a whole lot of people making plans with or against each other, in order to facilitate their wants and desires. And then frantically scrambling to adapt when the situation inevitably deviates from their plans.
Maybe am weird but this series is one of the most fascinating things I have learned from the Internet Massive thank you to the guys at extra for making this. And all your history videos. Top drawer stuff
6:20 Next week? I guess they found an artist to make this series weekly. Hooray! Also, spoilers: John Blunt gets off pretty easy compared to many of the other people involved.
Torian Hope No bubble has been as massive as the South Sea Company's since, not by a long shot. The amount of "imaginary wealth" generated by South Sea Co. was larger than the entire British economy at the time. And it was all done by one institution at that. It's scary to think, but the economic bubble in the US generated by the large banks and investment houses in recent years wasn't even close to being so massive. You would have to completely ignore inflation for the two to compare, in fact.
Torian Hope Epson, the electronics company? Are you sure you don't mean Enron, the American energy trading company that collapsed when it had its massive accounting fraud exposed in 2002? In that case, yes, absolutely, though on a smaller scale than the South Sea Company.
I've been watching extra history episodes for 12 hours straight. I'm a huge history nerd so I get to nerd up and laugh at the animations. Kids can learn from these!
Having recently watched Valley of the Boom about the tech boom and bust of the 1990s, it's amazing how much the hype bubbles of the two resemble each other.
I have some bad news for you guys - I did my own research to see what would happen to good old blunty-boy... *SPOILER* and for anyone who thinks that Blunt is going to lose his head for this? Or even his freedom? Lower your expectations. Hard. He does get screwed minorly but...He is easily one of the ones who came out best.
In a ponzi scheme, The schemer proposes to investors that they invest in his organisation, usually with a promise of above-average returns. However, the schemer isn't making any money, and is only paying the investors using the money invested in by new investors. It's very similar to a pyramid scheme.
Under Doge A Ponzi scheme (named after the con-artists Charles Ponzi) is where an individual or company claims to provide extremely high returns on investment. Let's say I tell you that I can invest your money so you get a 10% increase on your investment every month. That is insanely high in the finical world, but the oppertunity is just too good to pass up, and you give me $1,000. I don't actually invest the money into anything. However, you talk to your friends about the deal, and three of them come to me, and each give me $1000. Now I have $4,000. After three months, you decide you want your money back and collect the money I promised you will make. I agree, and hand you $1,300. Wow, this guy was telling the truth, I must be a finical genius. However, I didn't actually make any money, I just used a portion of the $3000 I got from your friends to simulate the profits I projected. I didn't take that 4,000 dollars and make money, I took $1,300 from the $4,000. Now, you talk to more of your friends, showing the big pile of money you made, helping to perpetuate the myth that I will make you insane returns on your investment. More and more people give me money, and the few that want their investment back will get it back. So, as long as the money entering the Ponzi Scheme is less than that exiting the scheme, everything will appear to be fine. I can skim off the surface, using the money people trusted me to invest in smart ways to buy houses and cars for myself to live the high life. Of course, mathematically this system cannot be sustained indefinitely. If everyone in a Ponzi Scheme, or even a large majority, want their money, they will find that there isn't even enough money in total too cover the money they invested into the scheme in the first place, assuming the person controlling the Ponzi Scheme hadn't grabbed the money and ran off too some Pacific island nation without an extradition treaty.
I know I could theoretically go do some research to find out what happens next, but... hey I am a visual learner! I dont know why, but comparing with the shakesperian seminal tragedy and nobunaga's ambition,, these videos appear shorter.
You have to wonder... for all Blunt's artifice, his plan was a distinctly short-term one, feeding into an unsustainable escalating loop that he didn't really have much of an escape plan from, it's almost as if he got in over his head and wasn't as clever as he thought he was.
What I don't get, is that John blunt KNEW that this was going to happen. He knew that he couldn't sustain a company that wasn't making any money, and he knew than when it collapsed, he would be to blame. So why did he do it?
***** I figure his plan was to skip country before the excrement hit the rotary apparatus; sell his stock, any liquid assets he might have, anything he didn't value personally, and then move to Portugal or something.
Anytime I hear about financial shenanigans I will now describe them in terms of "bluntyness". "Wait, he did an oversized options call on MARGIN!? That was a blunty move"
No parare de decir que su canal tiene los mejores videos de historia hechos! I wont stop to say that you have the best history videos made ever!! You can do a channel of this only kind of videos and succes
0:58 Today this practice is called "pump and dump" and as it is shown in this video is usually a tell tale sign of a collapse of some sort in the enterprise's near future.
Who would love to time travel back to the 1700s an meet Walpole & work with Mr.Blunt - it would be a real adventure, an better than todays boring office work.
jasper daugaard That is why i like the folling saying: Thoes who dosent learn with history, are doom to repeat it. Maybe i dint said the phrase right, but you get the point. That is why is so important to learn history.
Reminds me of MMM - a huge pyramid scheme in Russia, that happened soon after USSR collapse. But unlike South Sea, it wasn't affiliated with the government and was eventually sacked by authorities.
Between this and WWI, Extra credits has taught me that if I ever become a king of anything, that I should never ever take a vacation.
AsiniusNaso The big difference of then and now though is any ruler taking a vacation... isn't taking a vacation. At least not like we do. They will be out on the golf course, at their ranch, or where ever and all the while aids are running up to them almost non-stop with stuff to sign, decisions to make, and so on before going back to their email, phones, and where ever they came from.
AsiniusNaso Oda Nobunaga went on vacation as well, look how that turned out.
AsiniusNaso To be fair, they didn't have cellphones and live news broadcasts.
AsiniusNaso Fun fact: George Bush is ranked by historians as by far one of the worst presidents of all time for reasons both partisan and based on objective leadership. He spent A Year and A Half on his 8-year presidency on vacation.
Why let a little war get in the way of a good vacation?
History is the world's single greatest soap opera.
why even watch fiction? Reality is far wilder than anything humanity can dream of.
It's the world's single greatest skit show.
@@CSGhostAnimationOMG I love your stuff!
@@CSGhostAnimationi hope the irony of you saying that despite what ur channel is about is not lost u
Even to the very end of the stock's worth , Blunt was fighting to preserve his stock. Even though he's utterly deplorable, you do have to admire that determination to fight against odds that are insurmountable. If only his financial brilliance was used in a way that wasn't blatantly illegal and immoral.
I know right
Seriously, I want to meet the hype man that Blunt hired to pass this madhouse idea off as brilliant. There is absolutely zero points where anything he did seemed like a smart thing to get behind.
ClockworkHeart42 It was mentioned he hired the guy who wrote Robinson Crusoe to help market the South Sea Company. Also, remember, the East Indian Trading company already existed, which had made their original investors VERY rich men. Too be part of, what seemed at the time, to be the next East India Trading Company was too good a deal too pass up.
It would be like if all the news outlets talked about a new computer company as if it was going to be the next Apple, with a brand new operating system that completely surpasses the capabilities of IOS or Windows. Sell that right, and people will launch onto those early stocks like madmen.
ClockworkHeart42 Well lots of people became millionaires with this kind of scam in the past two decades, it's pretty common actually, fake it then make it.
A, this little scam was advertised as the next East India Company (which was legitimately massively successful), and might have actually gone that way, if Spain didn’t prevent it from doing any actual trading, forcing Blunt to do all his stock price shenanigans. B, as for Blunt himself, you’re talking about the sort of guy who sees his own government foundering in debt and goes in with the top priority of getting himself rich. This sort of short-sighted scammery is what you get with a guy desperate to fix the debt he saddled himself with, and quite knowledgeable in how to get idiots to throw their disposable dollars where their more valuable sense *ba dum tss* wouldn’t go. So the old saw goes, it seemed like a good idea at the time.
Enron. It's an 18th Century Enron on steroids
@@EmperorPylades So essentially, company with a legitimate game plan and potentially history turning into a scam because of failure?
Why is it always that when shit hits the fan, the king is always out on vacation? XD
Aegix Drakan "when shit hits the fan, the king is always out on vacation" sounds like it could be a thing.
(Sarcasm) Because the royal psychic warns the king to go on vacation before the shit hits the fan
supertaoman12
Yeah it could totally be a sitcom. XD
Aegix Drakan Or, like, a phrase people use 50 years from now.
Aegix Drakan Bacause that's all Kings ever do!
Kinda hard to believe they managed to make millions of pounds just by literally doing nothing
AsianSensation Studios Not that hard to believe - Keynesian Economics is basically promising riches from nothing, and plenty of people buy into that. If you fudge the numbers enough and leave details out, you can make a whole lot of money off of absolutely nothing... For a while, at least, until the bubble bursts.
Look up Ponzi Scheme. You'd be surprised.
Blunt seemed to work very hard and smart to get the share prices up. Maybe if he'd worked hard and smart at, say, trading in the South Sea, this would all have gone a lot better.
Keynesianism tells us that we don`t need to let people starve while wheat rots in the fields, just because the insanity of the market has decided to do so.
Capitalism tends to eat itself alive through trusts, union-busting and other forms of labor supression. In doing so it destroys people`s buying power, disincentivizing investment, which causes even more poverty and low buying power. Which is, among other things, what caused the Great Depression.
www.pbs.org/wgbh/americanexperience/features/introduction/minewars-introduction/
Sure, at some point it ends on its own. The starvation wages and stupendous reserves of capital eventually cancel out the miserable buying power. But why wait?
It`s a vicious cycle that can be broken by the government investing in the economy without expecting profits for itself, just expecting the economy to buck up and allow it to break even through improved tax revenue.
A lot of the economy is based of faith. The entire value of our currency is based on faith.
Thanks for the save, Jacomb.
Walpole heyo
Hello walpole
Robert Walpole I blame you
Hi walpole
‘Ello, Walpole
Well, it's good that people don't buy into ridiculous hype campaigns that offer unrealistic promises these days...
...
...
...
*looks around*
...
God dammit.
***** You good sir, are a gentlemen and a scholar. I salute you.
***** I know the felling.
***** I'm going to blame the South Sea Company for all my disappointment now.
Myst Lunarbane
You still need blame yourself too, if you still fall for the hype.. I think he not just talking about market, but, game pre order. When i said, know the felling, i mean, i fucking pre orded Alien Colonial Marines.
mestre12 Pre-orders, Bitcoin, and more countless kinds of hype campaigns that usually fail.
Did anyone else subscribe just for the history ones?
+Joe Kennedy I do
I do
+Joe Kennedy i subscribed for the history ones but have grown fond of the video game ones as well.
+timlamiam same here
timlamiam
Funny that you say that because recently I have become fond of the game ones as well. Especially the ones about education.
Walpole: A Lannister always repays his debts. *whistles the Rains of Castamere*
These cliffhangers man!
Even though it's history already known, I like how here it's told. :D
Draw dex In history class you should shout "No spoilers!"
This looks like the greatest financial nightmare in history! My biggest question going forward is.. how did ENGLAND, SURVIVE this?
BlackfootFerret Do not underestimate the power of our stiff upper lips.
BlackfootFerret Well... kind of funny how a 3rd grade colony of the most powerful country of the world of the time get rid of their masters. Hehehehe.
Yes.. but this is like Enron on a scale that literally four times the size of ALL THE MONEY IN ENGLAND! There has to be devastation on a level usually reserved for weapons of mass destruction.. and foreign powers threatening war of England defaulted on its debt. It's like Bernie Maddof owned the entire country.. I'm mostly curious how England out out of this mess.
BlackfootFerret I'm interested too, but I'm thinking it has something to do with debt and money not being real. Both concepts are based on human imagination. If you have a powerful enough army, you can just refuse to pay your debts. It might prevent people from wanting to lend to you in future, but in this kind of situation it might be the best possible outcome. Economies are really based on the goods and services an area (or this case a country) has available to the people in it. The rest is just imaginary, like the value of South Sea Stocks.
Well, I'm especially interested because it seems like almost every country in the world is heavily in debt, and the US might default one day if we don't get out debt under control. So seeing how England survives a financial crisis of this size is more than just a detached curiosity.
I'm actually anxious to hear the last part. The history topics you cover are ones that never cropped up in my time at school, and never entered into any conversations whereby I might be interested to research them myself. I really enjoy Extra History for bringing these topics up.
Somehow this is possibly the best EH series, right up there with the first one. About economics...it's official, you people are wizards.
YossarianVanDriver I don't know I liked the sengoku jidai better, a lot of strategy and clif hangers everywhere.
Gecko o Fair enough, it was pretty interesting.
This is my new favorite series on UA-cam.
Huh, this really DOES sound like what happened in 2008.....
William B sounds more like Enron to me, with the entire company's future being based around the idea that the stock would never fall, stock prices bein heavily inflated on a company that wasn't making any money, and the executive selling off his shares right before the company goes into freefall while telling everyone on the outside that everything was fine . The housing crisis was a bit more complex because all of it hinged on basically all of these big institutions being financially linked in numerous complex ways
Those who do not learn from history indeed.
DoYouReadSutterCane There was also the whole derivatives market, where the banks knew some of their loans were toxic and deliberately bet against them.
Aegix Drakan Ah, yes, the derivatives market. Now that was just VILE. During the oversight interviews, several of those responsible for that kind of policy even defended it as good business practice. :P
William B I think more like what happened in 2000
**shaking fist in the air**
WALPOOOOLEEE
If Blunt's name isn't used as rhyming slang in Britain, it ought to be. "That bloke's a real John Blunt, 'e is."
Neil Ballou Might well have been for a while. This was 300 years ago after all.
Neil Ballou Get to the point people..
TheBespectacledN00b This is part of Europe we're talking about. I've seen fist fights break out between European students here in Canada over stuff that happened more than 1000 years ago...
RealLuckless Yes, and I am British. Trust me, a lot of the stuff that happened then has been forgotten over here. For my generation at least, history teaching was "Hitler and the Henries"
Neil Ballou I don't recall who it is in reference to, but yes that word is indeed in rhyming slang as blunt and I believe it is a surname.
I love how Walpole keeps his friendly smile as he pulls the knife "For Blunt"
The history of the south sea's bubble can make for a good dark comedy movie, it could fit well in the style of the "wolf of wall street"
or "the death of stalin"
I was thinking the same, just like the Opium Wars were the pilot of Narcos.
And oh how little has changed.
***** Indeed, cube, indeed.
Human nature hasn't changed
***** That is the fun thing with history you can see how in a lot of ways people really haven't changed. A lot of the same events over and over again.
***** And for last year's (small) bubble: Bitcoin.
FlyingJetpack1 Bitcoin has had several price bubbles already, and it shows no sign of any bubble causing the industry to collapse. After every single bubble, the user base has continued to grow and the amount of money being invested also continues to grow. It's what you call a Fractal Bubble Pattern, which relates to the true ebb and flow of excitement over time in a fledgling industry. This bears no similarity to how the South Sea Bubble worked.
History throug market and trade. You will enjoy more then you think.
I really love to be a history nerd.
This is one hell of a Ponzy Scheme.
Nyghtking The prototype for a lot of the bubbles and shenanigans of the The Market.
shikatsu
And no one learned a thing.
Nyghtking They learned that there's a lot of money to be made.
rhemorigher
At a severe long term cost.
Nyghtking I see no evidence of that, Nyghtking.
I'm still getting lost in the economics... I'll probably need to rewatch this a couple of times after its over and take notes before I understand what happened.
Don't let --A mass-- Being thrown in prison Get in the way of a good --cru-- Making a profit.
What !?!?!?
You can't just end an episode right this !!!
I demand next one immediately !!!
I think that "The King was out on vacation" should be an extra history shirt.
What I find mind-blowing and horrifically sad about all this is not just that it happened, but that *IT KEEPS HAPPENING!!!*
Very late here, but at 2:28 their drawing of Walpole, in my mind, looks like a crazy eyed red-nosed smiley face.
History, one giant game of Xanatos speed chess.
LT Gen Klink That's basically all of life, really. It's about a whole lot of people making plans with or against each other, in order to facilitate their wants and desires. And then frantically scrambling to adapt when the situation inevitably deviates from their plans.
LT Gen Klink What's Xanatos speed chess?
SuperHamsterhuey Trying to twist all possible outcomes to your advantage against other people countering your moves.
SuperHamsterhuey See tvtropes.org/pmwiki/pmwiki.php/Main/XanatosSpeedChess for more discussion and examples.
LT Gen Klink hello fellow troper
I'm going to plant a sign in my back yard that simply says 'Welcome to the Ground'.
"The South Sea Company had ceased its meteoric rise and in fact was starting to go south."
It's about time !
Maybe am weird but this series is one of the most fascinating things I have learned from the Internet Massive thank you to the guys at extra for making this. And all your history videos. Top drawer stuff
watching this again I realise that this is my favourite series
6:20
Next week? I guess they found an artist to make this series weekly. Hooray!
Also, spoilers: John Blunt gets off pretty easy compared to many of the other people involved.
*looks at Epson*
History repeats I guess
But as the clock ticks so does time
Torian Hope No bubble has been as massive as the South Sea Company's since, not by a long shot. The amount of "imaginary wealth" generated by South Sea Co. was larger than the entire British economy at the time. And it was all done by one institution at that. It's scary to think, but the economic bubble in the US generated by the large banks and investment houses in recent years wasn't even close to being so massive. You would have to completely ignore inflation for the two to compare, in fact.
Torian Hope Epson, the electronics company?
Are you sure you don't mean Enron, the American energy trading company that collapsed when it had its massive accounting fraud exposed in 2002? In that case, yes, absolutely, though on a smaller scale than the South Sea Company.
Yes I mean Enron sorry
Sky Render The principle is the same though, I think.
I see these videos in my timeline and I jump of joy. Thanks for telling history in such a compelling way, guys.
I've been watching extra history episodes for 12 hours straight. I'm a huge history nerd so I get to nerd up and laugh at the animations. Kids can learn from these!
Man, I can not get enough of your guys style of history. Somehow you've made economics, government finance and marketing ploys interesting. Thanks!
Having recently watched Valley of the Boom about the tech boom and bust of the 1990s, it's amazing how much the hype bubbles of the two resemble each other.
Really been digging this series guys. Can't wait for next episode.
Can you please make a series about "Cnut the Great"
Blunt should've resigned and given someone else as the manager and then put all the blame on the new manager
In a funny twist of fate I was looking to see how much South Sea Company stock certificates are worth now.
Many of them auction for over £1000 now
This is some real game of thrones shit going on.
This series is just so cool! :)
Do you think the events around the Boxer rebellion would make a good series of videos?
How this did not result in a British Great Depression, I do not know.
thank you sharing this useful data ! Greatly appreciated.
You have The Dutch Tulip Bulb Market Bubble that went on in the 1630s. That was a crazy time.
Can you do a series on the Great Depression. specifically on the stock market risk and fall
"Fortune favors the bold"
I was wondering when this madness would end. 😂
History sometimes doesn’t know what to do with itself, but this is beyond that.
A sane man would have quit that kind of scheme way earlier, but Blunt was no sane man.
This channel is amazing for the history videos alone
I have some bad news for you guys - I did my own research to see what would happen to good old blunty-boy...
*SPOILER*
and for anyone who thinks that Blunt is going to lose his head for this? Or even his freedom? Lower your expectations. Hard. He does get screwed minorly but...He is easily one of the ones who came out best.
***** Which is kinda amazing. You'd think the king would go "You mean he's been lying to us the whole time, and did WHAT?! OFF. WITH. HIS. HEAD."
***** He earned it.
Xqwzts ...Clear up some vaugeness - He earned being screwed or earned getting out of it far more unscathed than some?
***** both, but more the latter than the former. His genius in making the hype train go bonkers to the point of true insanity is crazy.
Charles Ponzi, meet your makers
In a ponzi scheme, The schemer proposes to investors that they invest in his organisation, usually with a promise of above-average returns. However, the schemer isn't making any money, and is only paying the investors using the money invested in by new investors. It's very similar to a pyramid scheme.
Under Doge A Ponzi scheme (named after the con-artists Charles Ponzi) is where an individual or company claims to provide extremely high returns on investment. Let's say I tell you that I can invest your money so you get a 10% increase on your investment every month. That is insanely high in the finical world, but the oppertunity is just too good to pass up, and you give me $1,000. I don't actually invest the money into anything. However, you talk to your friends about the deal, and three of them come to me, and each give me $1000. Now I have $4,000.
After three months, you decide you want your money back and collect the money I promised you will make. I agree, and hand you $1,300. Wow, this guy was telling the truth, I must be a finical genius. However, I didn't actually make any money, I just used a portion of the $3000 I got from your friends to simulate the profits I projected. I didn't take that 4,000 dollars and make money, I took $1,300 from the $4,000. Now, you talk to more of your friends, showing the big pile of money you made, helping to perpetuate the myth that I will make you insane returns on your investment. More and more people give me money, and the few that want their investment back will get it back. So, as long as the money entering the Ponzi Scheme is less than that exiting the scheme, everything will appear to be fine. I can skim off the surface, using the money people trusted me to invest in smart ways to buy houses and cars for myself to live the high life.
Of course, mathematically this system cannot be sustained indefinitely. If everyone in a Ponzi Scheme, or even a large majority, want their money, they will find that there isn't even enough money in total too cover the money they invested into the scheme in the first place, assuming the person controlling the Ponzi Scheme hadn't grabbed the money and ran off too some Pacific island nation without an extradition treaty.
I know I could theoretically go do some research to find out what happens next, but... hey I am a visual learner!
I dont know why, but comparing with the shakesperian seminal tragedy and nobunaga's ambition,, these videos appear shorter.
I keep asking my self why Walpole is a reoccurring topic, then I re-watch this episode "oh yeaaaaa". A mind of metal and weals within weals.
You have to wonder... for all Blunt's artifice, his plan was a distinctly short-term one, feeding into an unsustainable escalating loop that he didn't really have much of an escape plan from, it's almost as if he got in over his head and wasn't as clever as he thought he was.
Please do a history series on Ceasers Campaigns.
Those who don't learn history are doomed to repeat it.
...
Those who do learn history are doomed to suffer with those who didn't as they repeat it.
"this was Blunt at his bluntiest" Fantastic!
for some context: 4-6% on a dividend is considered a *good* rate.
Wow
This video series is really valuable :)
What I don't get, is that John blunt KNEW that this was going to happen. He knew that he couldn't sustain a company that wasn't making any money, and he knew than when it collapsed, he would be to blame. So why did he do it?
***** I figure his plan was to skip country before the excrement hit the rotary apparatus; sell his stock, any liquid assets he might have, anything he didn't value personally, and then move to Portugal or something.
Tzilandi and then -move to- *buy* Portugal or something.
So, you talk more slowly and then speed up the recording, right? That is an INCREDIBLY good match with the style of this series.
6 days have passed we r expecting next episode tomorrow and not a day later! GOT IT?! Just kidding guys :) you r the best. Can't wait for next one!
This whole thing reminds me so much of Enron. Its amazing how much yet so little changes with time.
Anytime I hear about financial shenanigans I will now describe them in terms of "bluntyness". "Wait, he did an oversized options call on MARGIN!? That was a blunty move"
Enron : "We're the greediest most corrupt company in history!"
South Sea Company : "Hold my beer..."
Great video!
WALPOLE!!!
Yay, me! ;)
LOL This should be made into a mini-series. With all the sleight of hand, magician Penn should be Blunt.
This is what happens when you (are allowed to) spend money you don’t actually have.
No parare de decir que su canal tiene los mejores videos de historia hechos! I wont stop to say that you have the best history videos made ever!! You can do a channel of this only kind of videos and succes
damn, an other week! damn! I almost going to look up the end, but your way is cooler then wikipedia
3:57-4:06
And this is why the Royal Family is now on the dole. lol.
DAMN, I CAN'T WAIT FOR NEXT WEEK!
0:58 Today this practice is called "pump and dump" and as it is shown in this video is usually a tell tale sign of a collapse of some sort in the enterprise's near future.
this entire scheme sounds like an exploit someone would use in a tycoon game
why doesnt walpole have a series yet?
because Suleiman is better and more important than Sir Robert Walpole
I heard that.
Robert Walpole lol
Because all series are secretly about Walpole, so he doesn't need one.
Walpole is just walpole, he doesnt need his own
Lesson: if you are going to hype, you have to be able to *deliver* on that hype. For the Piper must be paid...
No the lesson is of your gonna hype you also need to know when to get the hell out of town
hey guys new sub here can someone tell me the origin to the warpole meme please.
that's the next part
+lightspeed Thank you, I was about to ask the same.
“Blunt @ his Bluntiest!!!” Jaha
That's why you never make this kind of scheme if your the monarch then this will absolutely ruin you in the future.
Now, finally, I'm getting close to the origin of the Extra History Running Gag.
I'll find out tomorrow. Approximately.
Anyone want some shares ;)
Am I too late to buy some stock?
I'm gonna keep my shirt...no I won't buy
Dinklebeeeeerg
No thanks
This scheme is funky!
loving this series
Man, there are a lot of Roberts in this story. Walpole, Knight, Jacomb...
Ohhhh man. Every episode is just digging the company's grave deeper...
When u realize the spiffing brit is the reincarnation of the south sea company
reminds me of the enron scandal, it was never about actually making money, it was just about keeping the shares valuable
this is awesome!
**sees video in the "what to watch" when going to get music and start danceing**
I can watch more history
Side notes: Issac Newton has lost £20k (around 3.1 million pounds in today money) to South Sea bubbles.. 😂😂😂
Talking abt FOMO..
Who would love to time travel back to the 1700s an meet Walpole & work with Mr.Blunt - it would be a real adventure, an better than todays boring office work.
The King: "I go on vacation for 3 weeks and this is what I return to?"
endplanets It seems that every time a king goes on vacation, something happens that is bad for the king.e.x. This, Franz Ferdinand, etc.
oh how Little history changes
jasper daugaard That is why i like the folling saying: Thoes who dosent learn with history, are doom to repeat it. Maybe i dint said the phrase right, but you get the point. That is why is so important to learn history.
mestre12 you were very close, the quote goes "those who fail to learn from history is doomed to repeat it"
Reminds me of MMM - a huge pyramid scheme in Russia, that happened soon after USSR collapse. But unlike South Sea, it wasn't affiliated with the government and was eventually sacked by authorities.