Capital Markets

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Capital Markets a brief history
Paul Pickup
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Capital Markets a very brief history

• 1844 Joint Stock Companies Act
• 1913 and all that
• The effect of two world wars cold war socialism
• Milton Friedman and monetarism-ish
• Capital Markets golden age
• Lessons from History?

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1844 Joint Stock Companies Act

• Oldest SE began in 1602.
• UK Laws
• 1817 An Act for regulating the Proceedings of
  certain Public Companies and Corporations . . .
• 1837 Chartered Companies Act
• 1844 Joint Stock Companies
• London, New York, Paris were capital centres.

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1913 and all that

• Global trade after various wars
• Telegraph
• Ticker tape
• Single currency in the U.S.
• Federal Reserve Act of 1913

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The effect of two world wars cold war socialism

• Massive rebuilding Marshall plan
• Broken economies
• Communism and socialism
• State run industries
• State pensions
• Retreat of Capital Markets to the U.S.

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Milton Friedman and monetarism-ish

• Keynesian economics failed

• Oil crisis 1970s
• Re-emergence of global trading
• Western countries became uncompetitive
• Monetarism introduced by

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Capital Markets golden age

• 1990s onwards!
• IMF Loans did not work
• Funding agencies encouraged capitalism
• Boom in Stock Exchanges
• Privatisations
• Deregulation of monopolies
• Short term gain for governments

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We are back to 1913

• BUT is based on international trading agreements

AND - peace
It does not take long for an uprising to happen
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Paul Pickup Trading Technology