Category Archives: financial regulation

Lessons from 85 Years of Movies about Finance

Share Button

August 26, 2024 — Over the past 85 years, Hollywood has had much to say about financial markets and institutions – often reflecting a distinctly populist perspective. At a time when both populism and financial volatility are much in evidence, what lessons might these movies hold about regulation?

  1. Wall Street speculators

Start with the Wizard of Oz.  The 1939 movie was a populist allegory about money, though most devotees don’t know it.  The Emerald City represents Wall Street, while the yellow brick road symbolizes the gold standard.   The Cowardly Lion represents William Jennings Bryan, who, when the original book was written in 1900, was an agrarian populist candidate running for president against the monetary austerity of the gold standard and on behalf of western farmers (the Scarecrow) and eastern factory workers (the Tin Man). read more

Share Button

Will the GameStop game stop?

Share Button

February 6, 2021 — Whether one thinks that the overall equity market is currently valued properly or not, something very unusual happened in the last week of January to GameStop stock.  Its price rose 323 percent for the week, and 1,700 per cent for the month (that is, an 18-fold increase). This was a speculative bubble. That is, the price departed from fundamentals.

Some investors who got in early and got out early made a lot of money. Just as many people, who got in too late or stayed in too long, lost a lot of money, as valuations came back to earth. read more

Share Button

The Next Recession Could Be a Bad One

Share Button

August 30, 2018 —  US economic statistics are currently good.  But the next recession could be bad.  

Share Button