Bond Market Power
Bond Market Power:
The reasons behind James Carville 's quote stating that if he would want to be reincarnated as the Bond Market as appose to a political figure or religious leader (Ferguson, N, 2008) is clear, the Bond market since its inception over 800 years ago has been the most influential financial instrument throughout history. Its longevity and power far surpasses any leader. It affects the outcome of wars, the success and failures of even the largest economies and also touches the lives of individual people. The below paper will discuss the history and origins of such a Debt Instrument, its rise in America inspiring James Carville 's quote. Also how the Bond Market works, its components and its power over economies throughout history using examples to support this. Concluding this analysis with the Bond Market in Ireland and how it has been greatly affected by the current economic climate.
Origins and Early History of the Bond Market:
Nations, races and religions have been at war since the dawn of time and has seen many wars; there have been countless debates as to what ultimately plays the most important role in winning a war. Many people would argue that it is the size of an army, some would say it is the General at the forefront of a battlefield, others would denote it to technological advances in weaponry. These arguments all have one factor in common, they all need to be funded by money; money to pay soldiers, to reward Generals and to pay for arms. The amount of money which a town, country or kingdom has to fund a war is what determines victory.
Niall Ferguson outlines the historic origins of the Bond Market very informatively in ' 'The Ascent of Money" tracing the use of Bonds, to as far back as the early 14th century in Italy. Throughout the 14th and 15th Century, Italian cities were at war with one and other. Florence, Pisa and Siena being the main cities at war with each other among others. As concluded above, it is money which is the
The reasons behind James Carville 's quote stating that if he would want to be reincarnated as the Bond Market as appose to a political figure or religious leader (Ferguson, N, 2008) is clear, the Bond market since its inception over 800 years ago has been the most influential financial instrument throughout history. Its longevity and power far surpasses any leader. It affects the outcome of wars, the success and failures of even the largest economies and also touches the lives of individual people. The below paper will discuss the history and origins of such a Debt Instrument, its rise in America inspiring James Carville 's quote. Also how the Bond Market works, its components and its power over economies throughout history using examples to support this. Concluding this analysis with the Bond Market in Ireland and how it has been greatly affected by the current economic climate.
Origins and Early History of the Bond Market:
Nations, races and religions have been at war since the dawn of time and has seen many wars; there have been countless debates as to what ultimately plays the most important role in winning a war. Many people would argue that it is the size of an army, some would say it is the General at the forefront of a battlefield, others would denote it to technological advances in weaponry. These arguments all have one factor in common, they all need to be funded by money; money to pay soldiers, to reward Generals and to pay for arms. The amount of money which a town, country or kingdom has to fund a war is what determines victory.
Niall Ferguson outlines the historic origins of the Bond Market very informatively in ' 'The Ascent of Money" tracing the use of Bonds, to as far back as the early 14th century in Italy. Throughout the 14th and 15th Century, Italian cities were at war with one and other. Florence, Pisa and Siena being the main cities at war with each other among others. As concluded above, it is money which is the
Bibliography: 1) Ferguson, N. 2008. The Ascent of Money. The Penguin Group. 2) www.ehow.com . US Bond Market History. Available [Online]: http://www.ehow.com/about_5089785_bond-market-history.html. (14th December 2010) 3) Smith, A. 1991. The Wealth of Nations. London: Everman 's Library. 4) Pongracic, I. 1995. How Clinton Destroyed the Bond Market. Available [Online]: http://mises.org/freemarket_detail.aspx?control=255. (15th December 2010) 5) Faerber, Esme. 1993. All About Bonds From The Inside Out. Probus Publishing. 6) Levinson, Marc. 2000. Guide to Financial Markets. 3rd Edition. The Economist Books. 7) Mishkin, F.S. 2006. Financial Markets & Institutions. 5th Edition. Pearson Addison Wesley. 8) www.bbc.co.uk . 1st December 2010. Why Do Bonds Matter. Available [Online]: http://www.bbc.co.uk/news/business-11743952. (17th December 2010). 9) Brennan, J. 15TH December 2010. www.bloomberg.com. Irelands Bail Out Fails to Revive Market For Bank Bond Sales Euro: Credit. Available [Online]: http://www.bloomberg.com/news/2010-12-15/ireland-s-bailout-fails-to-revive-market-for-bank-bond-sales-euro-credit.html. (21st December 2010).