01/02/2015 - Lessons on Financial Repression From the 1720 South Sea Bubble
The NY Times article on how the British government was forced to undertake a bailout due to the bursting of the South Sea Bubble back in 1720 .. “Now, prompted by record low interest rates, the British government is planning to pay off some of the debts it racked up over hundreds of years, dating as far back as the South Sea Bubble .. and would repay part of the country’s debt from World War I, and want to pay off other bonds for debt incurred in the 18th and 19th centuries .. The maneuver is also a reminder of how debts incurred by governments are passed down through generations.”
