Frauds, Swindles, and the Credit Cycle

  • Charles P. Kindleberger
  • Robert Z. Aliber

Abstract

The implosion of an asset price bubble always leads to the discovery of fraud and swindles. Enron began its tumble into bankruptcy within a few months of the peak in US stock prices. At about the same time MCIWorldCom began a series of announcements about some financial accounting mishaps that eventually culminated in the largest bankruptcy ever; the firm had overstated investments and understated expenses by $10 billion. The junk bond market collapsed after the increase in interest rates toward the end of the 1980s and the sharp decline in stock prices in October 1987.

Keywords

Microwave Europe Shipping Income Marketing 

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Frauds, Swindles, and the Credit Cycle

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Copyright information

© Palgrave Macmillan, a division of Macmillan Publishers Limited 2005

Authors and Affiliations

  • Charles P. Kindleberger
  • Robert Z. Aliber

There are no affiliations available

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