BillShrink has posted an infographic showing some of the highlights of the history of financial instruments. It is a bit wordy, so you will have to head on over to the site via the link below to actual read the infographic.
The problem with the graphic is that it assumes you know something about the events. I would hazzard a guess that most people do not know about the Dutch Tulip mania, or the South Sea Bubble.
As an interesting footnote in history, Sir Isaac Newton lost twenty thousand pounds by investing in the South Sea Bubble. About the Bubble, Sir Isaac Newton said, “I can calculate the movement of the stars, but not the madness of men”. As Paul Harvey would say, “Now you know the rest of the story.”
Throughout history, people have relied on various financial instruments to prosper. The concept of buying on credit goes back as far as 4000 BC and many fortunes have been made and lost through market speculation since the 17th century. From rice futures in the 17th century to Enron scam, we lay out the most monumental financial instruments in the history of time.
