67 questions · 43 almanac · 0 findings

Financial and Economic Crises

Episodes of financial collapse, panic, and recession.

Almanac Looking Directly at the People Who Feed Us
  • How did Steinbeck's upbringing in the Salinas Valley shape the subjects of The Grapes of Wrath and Of Mice and Men?
  • What historical events does The Grapes of Wrath dramatize about the Dust Bowl migration to California?
Almanac The Regulator Slowly Switches Sides
  • What is regulatory capture, and why does Stigler argue that regulated industries end up controlling the agencies meant to restrain them?
  • Why do individual consumers have less incentive to influence regulatory outcomes than the industries being regulated?
Almanac Masks a Culture Wears Alone
  • What masks of Mexican identity does El laberinto de la soledad examine, and why does Paz treat them like an anthropologist studying his own culture?
Almanac Diversify, and the Risk Shrinks
  • How did Harry Markowitz's 1952 paper show that combining uncorrelated assets can lower a portfolio's overall risk?
Almanac A Silent Asterisk on Unlimited Liability
  • What was the traditional principle of unlimited liability that Lloyd's of London 'Names' agreed to?
  • What happened when heavy losses in the early 1990s tested the Names' willingness to pay?
Almanac One Keystroke, Half a Percent of GNP
  • What trading error did Juan Pablo Dávila make at Codelco, and how did trying to fix it make things worse?
  • How much did Dávila's mistake end up costing Chile's economy?
  • What does the Chilean verb 'davilar' mean, and how did it enter the language?
Almanac Account 88888 Was Not Lucky
  • How did Nick Leeson hide £827 million in losses at Barings Bank before the scheme collapsed?
  • What kind of interest-rate bets caused Orange County to file for the largest municipal bankruptcy of its time?
  • What do the Barings and Orange County cases have in common as lessons about leverage?
Almanac Imaginary Numbers, Applied to Accounting
  • How did Enron use off-balance-sheet partnerships to hide debt and inflate earnings?
  • How did WorldCom's capitalisation of ordinary operating expenses inflate its reported profits?
Almanac A Country, Available for Hire
  • What did Karl Schwärzler's scheme actually let corporations rent for events?
  • What could clients customize when they rented the Principality of Liechtenstein?
  • Roughly how much did it cost to rent the entire country for a night?
Almanac Proving He Wasn't Dead
  • How did Lal Bihari come to be officially declared dead in India?
  • What is the Association of Dead People, and why did Bihari found it?
Almanac The Prince Who Needs Your Bank Details
  • What narrative template do advance-fee email scams typically follow?
  • Which real historical figures did the committee cite as recurring characters in these emails?
  • Why did the Ig Nobel committee frame the scam emails as a literary genre rather than simply as fraud?
Almanac A Country Ten Times Its Own Size
  • How did Iceland's three major banks grow to hold assets nearly ten times the country's GDP?
  • What happened to Iceland's economy when its banking sector collapsed in late 2008?
  • Why did the Ig Nobel committee choose to award the Economics prize to Iceland's bank executives?
Almanac Risk, Minimised Right Up Until It Wasn't
  • Which financial institutions were honoured by the 2010 Ig Nobel Economics prize and why?
  • How did mortgage-backed derivatives fail despite being marketed as low-risk?
Almanac A Report About Reports About Reports
  • What did the GAO's award-winning report actually recommend?
  • Why did the Ig Nobel committee consider a government report worthy of a Literature prize?
Almanac One Rulebook Does Not Fit Every Market
  • Why did the old regulatory toolkit of breaking up firms and capping prices fail for two-sided platforms?
  • What is mechanism design and how did Tirole apply it to industry-specific regulation?
  • How does platform economics explain why a firm might subsidise one group of customers to attract another?
Almanac Nobody Reads the Manual, Confirmed
  • What percentage of people were found to skip product instruction manuals entirely?
  • What does the manual-skipping tendency imply for how products should be designed?
Almanac Pricing the Winner's Curse
  • What is the 'winner's curse' in an auction with a common but uncertain value, like oil drilling rights?
Almanac Why a Rumour of Failure Causes One
  • What structural mismatch in banking did Diamond and Dybvig's 1983 model formalize?
  • How can depositors' mere belief that a bank will fail actually cause that failure?
  • What did Bernanke's research show about the role bank failures played in deepening the Great Depression?
  • How did Bernanke apply Diamond and Dybvig's theoretical insights during his time as Federal Reserve chairman in 2008?