Natural South Sea
September 21st, 2009
Nothing Learned in 300 Years – Bernie Madoff, John Law, the South Sea Bubble, Etc
The scandal around Bernie Madoff’s alleged Ponzi scheme recalls many historical examples of human greed and stupidity, notably the Mississippi Scheme of John Law in France and Britain’s South Sea Bubble, both of which contributed to European economic collapse in the early eighteenth century.
By mid-1720, when the South Sea Company was spreading extravagant rumors about the value of its trade in the New World, the share price of the Company had risen to nearly £1000 from £128 at the beginning of the year, on the back of low actual earnings (associated partly with trade in slaves). Based on its high share price, the Company bought 80% of the British government’s £50 million debt, ensuring government cooperation in the affair (for a while). When instalment payments actually came due in August on new issues of South Sea shares, the Company found that it could not collect on loans made to investors in the shares. This triggered enormous falls in the share price and thousands of bankruptcies. By end-September the share price had fallen to £150. Even one of history’s greatest mathematical geniuses, Sir Isaac Newton, reportedly lost £20,000, a considerable fortune at the time.
The enterprising Scot known as John Law (Jean Lass to the French), who had been appointed France’s Controller General of Finances by the regent, Philippe d’Orleans, acquired control of the derelict Compagnie du Mississippi, which benefited from a national monopoly in New World trade, as the South Sea Company had done. Based on similar wild exaggeration and effective marketing, shares in the company rose from 500 to 18,000 livres, before falling back to 500 in 1721. By then Law had fled France (he died in Venice in 1729, aged 57). His company had bought the whole of France’s 1.6 billion livre government debt with subscription proceeds. The resulting chaos led to economic collapse across Europe.
The South Sea Company and Mississippi schemes, while technically bubbles, bear a resemblance to a Ponzi scheme, like Mr. Madoff’s arrangement seems to have been, due to the same offer of high returns, and payouts to investors from the money provided by new investors drawn into the scheme. Both schemes, like Mr. Madoff’s, had managed to clothe themselves in an aura of legitimacy, given the high profiles of many investors, as well as government backing.
Mr. Madoff’s investments consistently reported gains of around 1% a month for 20 years. It seems that hardly any information about the nature of investments or strategy was shared, and he was known to reject investors who asked too many questions. Even useful information provided in similar cases, such as the failure of Amaranth (a hedge fund which went bust in 2006) to file required SEC forms (after which investors piled even more money in), is apparently ignored. Lack of information might be an excuse for eighteenth-century investors, but tends to fall short of twenty-first-century “sophisiticated” standards. Like many other examples, Madoff’s scheme is likely to go down in the history of human gullibility, along with the South Sea Bubble and the Mississippi Company.
About the Author
E Bace is a London-based author and researcher on a variety of topics. His interests include history, literature, art, music, finance, cuisine, beer and wine, among other things.
Dispatch: Sea Lanes, Natural Resources at Stake in the South China Sea
|
|
10.31X9.28mm half hole natural pear shape white South Sea pearl Loose bead z614 $15.00 |
|
|
NATURAL SOUTH SEA Strand of the PEARL BRACELET multicolor $6.99 |
|
|
10.50X9.44mm half hole natural pear shape white South Sea pearl Loose bead z622 $15.00 |
|
|
12 natural, oyster pearl beads, 4, 4.5, 5, 6 mm, silver, copper, sea colors $29.99 |
|
|
10.20X9.26mm half hole natural pear shape white South Sea pearl Loose bead z623 $15.00 |
|
|
natural South Sea Gray Mabe Pearls Earring 14K $450.00 |
|
|
NATURAL SOUTH SEA Strand the PEARL BRACELET gray $6.99 |
|
|
9.82X9.14mm half hole natural pear shape white South Sea pearl Loose bead z626 $15.00 |
|
|
10.55X9.33mm half hole natural pear shape white South Sea pearl Loose bead z631 $15.00 |
|
|
10.96X9.25mm half hole natural pear shape white South Sea pearl Loose bead z624 $15.00 |
|
|
9.81X9.28mm half hole natural pear shape white South Sea pearl Loose bead z616 $15.00 |
|
|
18” 14K SOUTH SEA NATURAL WHITE PEARL NECKLACE EARRING $26.00 |
|
|
18MM SOUTH SEA GENUINE RARE NATURAL CULTURED WHITE LOOSE PEARL DRILLED $9.99 |
|
|
LUXURY natural south sea Dolphin Shape white pearl pendant necklace $0.40 |
|
|
natural south sea 16mm white shell Pearl Pendant/Necklace $0.18 |
|
|
Unheated 91.60 Ct Round Cab Natural White Pearl Strand $10.70 |
|
|
ESTATE BLACK SOUTH SEA PEARL NATURAL 14K WHITE GOLD FLOWER DIAMOND PENDANT $948.74 |
|
|
ESTATE BLACK SOUTH SEA PEARL NATURAL 14K GOLD DIAMOND PENDANT $1,075.24 |
|
|
ESTATE BLACK SOUTH SEA PEARL NATURAL 18K WHITE GOLD DIAMOND PENDANT $632.49 |
|
|
SOUTH SEA TAHITIAN NATURAL BAROQUE BLACK PEARL 13.5MM $379.49 |
|
|
Genuine Natural White South Sea Mabe Pearl Earrings! $45.00 |
|
|
PERFECT ROUND 11MM NATURAL AUSTRA SOUTH SEA GENUINE GOLD LOOSE PEARL PENDANT 14k $24.99 |
|
|
PERFECT ROUND 11MM NATURAL SOUTH SEA GENUINE GOLD LOOSE PEARL PENDANT 14k $24.99 |
|
|
PAIR OF SOUTH SEA 30MM NATURAL CHOCOLATE LOOSE PEARL EARRING $24.99 |
|
|
HUGE NATURAL 13MM SOUTH SEA GENUINE WHITE PEARL NECKLACE PENDANT SILVER CHAIN $46.00 |
|
|
18″10-12MM SOUTH SEA NATURAL black green PEARL NECKLACE 14K $24.99 |
|
|
18″9-10MM SOUTH SEA NATURAL BLACK PEACOCK BLUE PEARL NECKLACE PERFECT ROUND 14K $49.99 |
|
|
huge18.5x 25mm natural Australian SOUTH SEA white LOOSE PEARL drilled $24.99 |
|
|
AAA natural 12 Australain south sea white loose pearl half drilled $50.00 |
|
|
20x30mm south sea genuing natural rare white cultured pearl drilled $9.99 |
|
|
ES GORGEOUS NATURAL GOLDEN ROUND 12.97mm AUSTRALIAN SOUTH SEA PEARL RING Sz 5.75 $199.99 |
|
|
HUGE 17X13MM NATURAL AUSTRALIAN SOUTH SEA WHITE SILVER TONE LOOSE PEARL UNDRILL $18.00 |
|
|
7-8mm Natural AAA +south sea golden pearl necklace 14K $21.00 |
|
|
Natural South Sea Pearl Gemstone 925 Sterling Silver Solitaire Ring Size 7.5 New $37.50 |
|
|
3.5oz south sea natural shape coral branch(dyed)-99g $14.99 |
|
|
HUGE 20″12MM NATURAL SOUTH SEA GENUINE GOLD PINK MULTICOL PEARL NECKLACE 14K $60.00 |
|
|
PAIR 30MM NATURAL AUSTRALIAN SOUTH SEA BLACK LOOSE PEARL can be earring $9.99 |
|
|
PAIR 34MM NATURAL AUSTRALIAN SOUTH SEA WHITE LOOSE PEARL can be earring $9.99 |
|
|
stunning natural south sea black pearl pendant necklace $0.56 |
|
|
HUGE NATURAL 14MM SOUTH SEA GENUINE GOLD PINK LOOSE PEARL UNDRILLED GLASS LUSTER $88.00 |
|
|
PAIR OF NATURAL 11-12MM SOUTH SEA GENUINE WHITE PEARL STUD EARRING 14K WG $58.00 |
|
|
Huge 16mm SOUTH SEA NATURAL WHITE PEARL NECKLACE20”14KG $49.00 |
|
|
NATURAL SOUTH SEA PINK PEARL BUTTERFLY RING Size 7.8# $0.90 |
|
|
ONE STRAND36″10-11MM NATURAL PERFECT SOUTH SEA SILVER GRAY PEARL NECKLACE 14K $489.00 |
|
|
SHINING NATURAL WHITE AUSTRALIAN SOUTH SEA CULTURED PEARL – 14.3 x 12.2mm $26.00 |
|
|
BIG NATURAL GOLDEN AUSTRALIAN SOUTH SEA CULTURED PEARL – 14.7 x 13.1mm $15.00 |
|
|
18″15MM NATURAL SOUTH SEA MULTICOLOR PEARL NECKLACE 14K $3,999.00 |
|
|
HUGE RICH NATURAL GOLDEN AUSTRALIAN SOUTH SEA CULTURED PEARL – 14.1x 13.4mm $9.99 |
|
|
15mm natural Australin south sea white loose pearl pendant $9.99 |
|
|
huge 13.1x20mm natural tahitian south sea black blue green loose pearl drilled $16.00 |
|
|
36″HUGE12MM SOUTH SEA NATURAL BLACK GRAY PEARL NECKLACE $285.00 |
|
|
ES GENUINE RARE TAHITIAN SOUTH SEA NATURAL BLACK GRAY 15.93×9.55mm PEARL PENDANT $19.99 |
|
|
34″inch 8mm NATURAL south sea PINK PEARL NECKLACE @@947 $0.10 |
|
|
Platinum White Silver SOUTH SEA Baroque PEARL Lombok 13.7mm 3G+ ~100% Natural $5.00 |
|
|
10.5mm natural color south sea pearl round beads gem zg844 $95.00 |
|
|
10.2mm natural color south sea pearl round beads gem zg845 $95.00 |
|
|
10.8mm natural color south sea pearl round beads gem zg846 $95.00 |
|
|
10.9mm natural color south sea pearl round beads gem zg847 $95.00 |
|
|
10.8mm natural light gold south sea pearl round beads gem zg848 $95.00 |
|
|
11.9mm natural color south sea pearl round beads gem zg849 $95.00 |
|
|
12mm natural light gold south sea pearl round beads gem zg850 $95.00 |
|
|
AAAAA18″10-11mm Natural south sea black pearl necklace 14K $228.00 |
|
|
Beautiful WHITE!PERFECT 12.5MM NATURAL SOUTH SEA PEARL 18K GOLD PENDANT&D0.07CT $730.00 |
|
|
HIGH LUSTER!ROUND 12MM GRAY NATURAL SOUTH SEA&14K 585 GOLD STUD EARRING $399.00 |
|
|
10.75MM NATURAL COLOR GREENISH BLACK SOUTH SEA PEARL 14K WHITE GOLD EARRINGS $475.00 |
|
|
36″8-9mm Natural south sea silver gray pearl necklace $36.00 |
|
|
GENUINE NATURAL AAA SOUTH SEA 10-11MM GOLDEN PEARL NECKLAC 18″ 14K GOLD $108.00 |
|
|
Gemstone Natural Fresh & South Sea Pearl Silver Plated Bracelet Sz 7″ New Gs#1B $51.50 |
|
|
48″10-11mm Natural south sea golden pearl necklace 14K $378.00 |
|
|
REAL 10-11MM Natural south sea golden pearl earrings 14K $9.99 |
|
|
10-11mm Natural south sea SILVER gray pearl earrings 14K $9.99 |
|
|
REAL 10-11mm Natural south sea BLACK pearl earrings 14k $9.99 |
|
|
REAL 10-11mm Natural south sea white pearl earrings 14K $9.99 |
|
|
10-11mm Natural south sea black green pearl earrings 14K $15.99 |
|
|
Natural south sea 9-10mm red pearl earrings 14K GOLD $9.99 |
|
|
17″13-15mm NATURAL south sea GOLD PINK PURPLE pearl necklace 14K GOLD $2,100.00 |
|
|
18″12-13mm REAL NATURAL south sea GOLD PINK pearl necklace 14K GOLD $478.00 |
|
|
PERFECT NATURAL 18.2X11.9MM SOUTH SEA PURPLE LOOSE PEARL $0.01 |
|
|
ES ~RARE~ 18K NATURAL RUBY 13.81mm AUSTRALIAN SOUTH SEA RICH GOLD PEARL PENDANT $48.72 |
|
|
PERFECT NATURAL 19.9X12.8MM SOUTH SEA LIGHT PINK LOOSE PEARL $9.99 |
|
|
13-14mm Natural south sea gray pearl earring 14K $48.99 |
|
|
SOUTH SEA NATURAL WHITE 3PEARL NECKLACE PENDANT $0.46 |
|
|
NATURAL 20mm White round South Sea Mabe pearls Ring 925ss E999 $24.99 |
|
|
8-12mm Natural south sea shell golden pearl necklace $0.01 |
|
|
9.54mm half hole pear shape natural white South Sea pearl Loose bead z916 $9.99 |
|
|
10.97mm half hole pear shape natural white South Sea pearl Loose bead z913 $9.99 |
|
|
10.43mm half hole pear shape natural white South Sea pearl Loose bead z912 $9.99 |
|
|
10.21mm half hole pear shape natural white South Sea pearl Loose bead z909 $9.99 |
|
|
10.12mm half hole pear shape natural white South Sea pearl Loose bead z908 $9.99 |
|
|
9.71mm half hole pear shape natural white South Sea pearl Loose bead z905 $9.99 |
|
|
9.53mm half hole pear shape natural white South Sea pearl Loose bead z904 $9.99 |
|
|
9.86mm half hole pear shape natural white South Sea pearl Loose bead z903 $9.99 |
|
|
9.80mm half hole pear shape natural white South Sea pearl Loose bead z900 $9.99 |
|
|
10.22mm half hole pear shape natural white South Sea pearl Loose bead z897 $9.99 |
|
|
9.68mm half hole pear shape natural white South Sea pearl Loose bead z896 $9.99 |
|
|
10.49mm half hole pear shape natural white South Sea pearl Loose bead z887 $9.99 |
|
|
9.77mm half hole pear shape natural white South Sea pearl Loose bead z886 $9.99 |
|
|
9.64mm half hole pear shape natural white South Sea pearl Loose bead z885 $9.99 |
|
|
11.65mm half hole pear shape natural white South Sea pearl Loose bead z884 $9.99 |
|
|
10.77mm half hole pear shape natural white South Sea pearl Loose bead z883 $9.99 |
|
|
1/2 Carat Diamond South Sea Pearl 14k White Gold Ring $805 The silent glow, beauty of pearls is on display in this exquisitely elegant ring. A single 10.5mm south sea cultured pearl is crowned with a constellation of 1/2carat diamonds and set on a high gloss 14k white gold band.Here’s a classic that will never go |
|
|
14k White Gold, South Sea Pearl,Trillion Diamond Ring (0.55 ctw) $1085 This is an elegant classic ring featuring one magnificant white South Sea cultured pearl, enhanced by sparkling trillion diamonds, set in brightly polished 14k white gold. |
|
|
14k White Gold, South Sea Pearl, Baguette Diamond Ring (0.75 ctw) $1295 This is a splendid red carpet “one of a kind” beauty, centering one white South Sea cultured pearl, enhanced by gleaming baguette-cut diamonds, set in brightly polished 14k white gold. |
|
|
5/8 Carat Chocolate & White Diamond South Sea Pearl 14k Yellow Gold Flower Ring $895 Feel the exuberance of spring with this gorgeous diamond flower ring. Chocolate and white diamonds adorn glossy 14k yellow gold petals. A shining brown South Sea pearl in the center is the crowning piece of this ring. |
|
|
South Sea Tales $2.39 South Sea Tales |
|
|
South Sea Pearls Earring Dangles in 18k Gold $2795 18kt white gold Diamond hoop earrings with a circle design and gorgeous South Sea Pearls. (294FA16E) 2,795 Natural lustrous 11mm South Sea Pearls .73 ctw of genuine Diamonds Weighs approx 9 grams Measures 1 5/8″ long x 1/2″ at widest Hinged snap back hoops are for pierced ears only Also available in yellow gold, please specify Comes in a nice gift box |
|
|
South Sea Pearl Ring with Diamonds in 14k Gold $995 14kt gold ring with a South Sea Pearl center surrounded by Diamonds. (182FA03R) 995. .49 ctw of genuine white Diamonds 10.5mm natural white South Sea Pearl Measures 3/4″ wide and sits 1/2″ high off the finger Weighs approx 6.8 grams Comes in a pretty ring box Also available in white gold, please specify |
|
|
The Marine Biology of the South China Sea $128 The Marine Biology of the South China Sea |
|
|
14k White Gold Pearl & Diamond Ring (10.50 mm) $279 This is an exquisite beauty, centering one white South Sea cultured pearl, enhanced by gleaming round brilliant-cut diamonds, set in brightly polished 14k white gold. |
|
|
Large Natural Sea Sponge $24.99 Large Natural Sea Sponge |
|
|
South Sea Tales (Unabridged) $5.59 Jack London’s South Sea Tales is a collection of eight short stories set in the South Pacific…. |
|
|
The South Sea Whaler $3.99 “The South Sea Whaler” by William H. G. Kingston is a classic work of literature that can be enjoyed by all. Download “The South Sea Whaler” and enjoy another quality Digireads.com publication. |
|
|
Sea Paradise, Newtons,,South Africa $96.06 Hotel property Sea Paradise, Sands Road in Newtons, South Africa |
|
|
14.80mm South Sea Pearl & 2.50 Carat Swirling Marquise Ring $9258 This is a stunning pearl and diamond ring that will have everyone taking second glances. The centerpiece of this fabulous ring is a genuine and natural South Sea pearl with a 14.80mm diameter. The pearl is truly gorgeous with an extreme luster and natural blemishes. It is perfectly round with a beautiful grayish tint. Surrounding the pearl in a swirl like design, there are 2.50 carats of marquise cut diamonds. These marquises range in clarity from Vs2-SI1 with a color grade of H-I. This ring is made of 18K white gold with a total gold weight of 16.69 grams. |
|
|
3 Pack Natural Sea Sponge $89.99 3 Pack Natural Sea Sponge |
|
|
6 Pack Natural Sea Sponge $179.99 6 Pack Natural Sea Sponge |
|
|
The South China Sea $129 A synthesis of sedimentary geology and paleoceanography of the South China Sea on the basis of extensive industrial explorations and scientific expeditions culminated with the ODP Leg 184. It offers knowledge about the history of this largest marginal sea in the West Pacific, deep-sea records of evolution and variations of the East Asian monsoon. |
|
|
South Africa and the Law of the Sea $221 South Africa and the Law of the Sea brings together the many threads of the rich South African marine-law tapestry by covering both the public international law as context and the details of South African marine law and policy within their African framework. |
|
|
Women’s Handmade 14k White Gold, 1/8 Carat Diamond Eternity Wedding Ring (7.00 mm) $549 This sandblasted and textured white gold band organizes lines with round brilliant-cut diamonds in an alluring fashion. At one glance, it taps into your psyche, promoting its own natural beauty. Also available in 18k gold and platinum, please contact a je |
|
|
SWISSCO Natural Sea Sponge (Model: SW58210) $14.7 Natural sea sponge. |
|
|
16mm South Sea Pearl & 3.30 Carat Starburst Diamond Ring $9145 What a gorgeous ring to add to your jewelry collection. This piece is not intended for individuals with smaller fingers, as it is a huge piece. The focal point of this ring is the genuine and natural 16mm white South Sea pearl. This pearl is fabulous with its fine luster and natural blemishes. The pearl has a grayish tint and is perfectly round. Surrounding the center pearl, there are 1.50 carats of round cut diamonds and 1.80 carats of beautiful baguette cut diamonds. These diamonds have a clarity of Vs2-Si1 with a color grade of H-I. This ring is made of 18K white gold with a total gold weight of 19.76 grams. |
|
|
South China Sea $78.07 High Quality Content by WIKIPEDIA articles The South China Sea is a marginal sea. It is a part of the Pacific Ocean, encompassing an area from Singapore to the Strait of Taiwan of around 3,500,000 km. It is one of the largest sea bodies after the five oceans. The minute South China Sea Islands, collectively an archipelago, number in the hundreds. The sea and its mostly uninhabited islands are subject to competing claims of sovereignty by several countries. These claims are also reflected in the variety of names used for the islands and the sea. Author: Surhone, Lambert M./ Timpledon, Miriam T./ Marseken, Susan F. Binding Type: Paperback Number of Pages: 124 Publication Date: 2010/07/11 Language: English Dimensions: 6.00 x 9.00 x 0.29 inches |
|
|
17 1/2mm South Sea Pearl & 4.20 Carat Diamond Ring $11129 This humongous pearl and diamond ring has a intricate and beautiful design. To start off, it has a genuine South Sea pearl as the centerpiece. This gorgeous pearl measures an incredible 17 1/2mm in diameter. It has a high luster and a perfect round shape. The color is white with a grayish tint and natural blemishes. To complement this pearl, there is a whooping 4.20 carats of beautiful baguette cut diamonds. These baguettes range in clarity from Vs2-Si1 with a color grade of H-I. The baguettes seem to swirl around the pearl and add characteristics to the ring which is made of 18K white gold and has a total gold weight of 22.63 grams. |
|
|
South Sea Maidens $140 From the first European contact with Tahiti in 1767, the myth of the South Sea maiden has endured through many incarnations. Although the maiden frequently provided an idealized antidote to Western women's self-assertion, the South Pacific also afforded a space where boundaries between the sexes could be relaxed and transgressed. From James Cook and Captain Bligh to James Michener and Margaret Mead, the Island girl has occupied a special place in the erotic imagination of the West. In a sweeping study that embraces history, literature, visual arts, anthropology and film, this study gives fresh insight into the myths and reality of a Western icon. While women from far off lands have always been presented as exotic and alluring, the South Sea maiden has come to symbolize feminine sexuality, as an integral part of the adventure, sensuality, and romance of the South Pacific. Everyone from early explorers to 19th century writers and artists to latter day anthropologists, film makers, and tourism promoters have extolled their virtues and their bodies. Sturma looks behind the popular clich^D'es to reveal how the myth-making process reflected not only Western desires, but the cut and thrust of changing sexual politics. The result is an intriguing look at both South Sea image-makers and the women whom they found so seductive. |
|
|
South China Sea Shipwrecks $74.88 Please note that the content of this book primarily consists of articles available from Wikipedia or other free sources online. The South China Sea shipwrecks are two shipwrecks discovered in the South China Sea. The shipwrecks may yield important archaeological evidence about the marine Silk Road trade route linking ancient China with the Western world. South China SeaI was discovered in 1987 and is the marine Silk Road area. It dates back to the Song Dynasty era (9601279). A few days after South China Sea I began to be excavated in early June 2007, a second wreck, named South China SeaII was discovered using satellite navigation. The official Xinhua news agency cited Guangdong archaeologists and said the wreck was 7 to 18 m long and at a depth of 20 m, and also cited preliminary studies showing the ship shows it may have sunk after hitting a reef around the early 17th century. Over 300 pieces of porcelain, including bowls, plates, pots and bottles, were recovered from this wreck. Author: Surhone, Lambert M./ Tennoe, Mariam T./ Henssonow, Susan F. Binding Type: Paperback Number of Pages: 100 Publication Date: 2011/02/28 Language: English Dimensions: 5.98 x 9.02 x 0.24 inches |