From the South Sea Company Share to Credit Default Swap

In effect, two instruments with conflicting purposes and functions were packaged together and sold to investors that did not fully understand what they were buying: one was designed to make money as the subprime mortgage market grew; and the other was betting against it. So who ultimately won? The answer; the intermediary. Continue reading From the South Sea Company Share to Credit Default Swap

Charles Ponzi (1882-1949): A conman whose notoriety has been forever embedded in our common lexicon

While he grew ever more desperate for yet another idea for a get-rich-quick scheme, one day, he stumbled across postal reply coupons in an envelop his friend sent him from overseas. A flash of light crossed his mind, and he was instantly enthralled by the idea, this time, for a legitimate venture. Continue reading Charles Ponzi (1882-1949): A conman whose notoriety has been forever embedded in our common lexicon