Comments on: Cicero and the Roman Credit Crunch, 88 BC http://www.ritholtz.com/blog/2008/12/cicero-and-the-roman-credit-crunch-88-bc/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Sat, 21 Nov 2009 14:57:30 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: jason.leigh http://www.ritholtz.com/blog/2008/12/cicero-and-the-roman-credit-crunch-88-bc/comment-page-1/#comment-132062 jason.leigh Wed, 10 Dec 2008 10:30:37 +0000 http://www.ritholtz.com/blog/?p=11712#comment-132062 This simply isn't true. There were of course earlier examples of Credit Crises, even immediately preceding Cicero. Look at the Tacitus' annals of Imperial Rome, around A.D. 33 during the time of Emperor Tiberius. His response was eerily like today's. A massive credit crunch. A desperate legislature asking the Emperor to inject cash into the economy. Tiberius pumping millions into the Roman economy. This proved to be such a spectacular failure that people cheered upon hearing of his death. There's also a credit crisis in Chapter 47:13-25 of Genesis. The Egyptians spent all their money on corn. They ran out of money. Joseph hoarded the money, and didn't inject cash back into the economy causing a massive deflationary spiral. In exchange for food, the Egyptians traded their land, their livestock, and 20% of their future harvest in perpetuity. This simply isn’t true. There were of course earlier examples of Credit Crises, even immediately preceding Cicero. Look at the Tacitus’ annals of Imperial Rome, around A.D. 33 during the time of Emperor Tiberius. His response was eerily like today’s. A massive credit crunch. A desperate legislature asking the Emperor to inject cash into the economy. Tiberius pumping millions into the Roman economy. This proved to be such a spectacular failure that people cheered upon hearing of his death.

There’s also a credit crisis in Chapter 47:13-25 of Genesis. The Egyptians spent all their money on corn. They ran out of money. Joseph hoarded the money, and didn’t inject cash back into the economy causing a massive deflationary spiral. In exchange for food, the Egyptians traded their land, their livestock, and 20% of their future harvest in perpetuity.

]]> By: DavidB http://www.ritholtz.com/blog/2008/12/cicero-and-the-roman-credit-crunch-88-bc/comment-page-1/#comment-130481 DavidB Thu, 04 Dec 2008 02:22:02 +0000 http://www.ritholtz.com/blog/?p=11712#comment-130481 Friends, Romans, countrymen....lend me your money Friends, Romans, countrymen….lend me your money

]]> By: Jojo99 http://www.ritholtz.com/blog/2008/12/cicero-and-the-roman-credit-crunch-88-bc/comment-page-1/#comment-130428 Jojo99 Wed, 03 Dec 2008 23:33:58 +0000 http://www.ritholtz.com/blog/?p=11712#comment-130428 This from my quote file is commonly cited: The budget should be balanced, the treasury refilled, public debt reduced, the arrogance of officialdom tempered and controlled, and the assistance to foreign lands curtailed, lest Rome become bankrupt. -- Cicero, Roman statesman This from my quote file is commonly cited:

The budget should be balanced, the treasury refilled, public debt reduced, the arrogance of officialdom tempered and controlled, and the assistance to foreign lands curtailed, lest Rome become bankrupt.

– Cicero, Roman statesman

]]> By: daveNYC http://www.ritholtz.com/blog/2008/12/cicero-and-the-roman-credit-crunch-88-bc/comment-page-1/#comment-130304 daveNYC Wed, 03 Dec 2008 16:29:06 +0000 http://www.ritholtz.com/blog/?p=11712#comment-130304 Back then the solution could have been getting lucky and finding a gold mine, or having the creditors send in a legion or two as kind of extreme repo men. Back then the solution could have been getting lucky and finding a gold mine, or having the creditors send in a legion or two as kind of extreme repo men.

]]> By: David Merkel http://www.ritholtz.com/blog/2008/12/cicero-and-the-roman-credit-crunch-88-bc/comment-page-1/#comment-130298 David Merkel Wed, 03 Dec 2008 16:13:52 +0000 http://www.ritholtz.com/blog/?p=11712#comment-130298 Under a gold/barter standard, winning a few battles and gaining enough incremental goods could turn the monetary tide. When gold becomes more common, it often produces a boom, followed by the inevitable bust. For a different example, think of the Pilgrims, who would see the prices of goods they could not produce, denominated in quantities of agricultural produce and furs, fluctuate as new colonists came (or went). Under a gold/barter standard, winning a few battles and gaining enough incremental goods could turn the monetary tide. When gold becomes more common, it often produces a boom, followed by the inevitable bust.

For a different example, think of the Pilgrims, who would see the prices of goods they could not produce, denominated in quantities of agricultural produce and furs, fluctuate as new colonists came (or went).

]]> By: awilensky http://www.ritholtz.com/blog/2008/12/cicero-and-the-roman-credit-crunch-88-bc/comment-page-1/#comment-130278 awilensky Wed, 03 Dec 2008 14:46:49 +0000 http://www.ritholtz.com/blog/?p=11712#comment-130278 But weren't they all hard currency? There was no way to expand the empire's balance sheet via fractional reserves? But weren’t they all hard currency? There was no way to expand the empire’s balance sheet via fractional reserves?

]]>