Money History From the Middle Ages to Mercantilism Case Study

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In Of Human Bondage, the author provides a historical overview of the bond market origins. Due to the writing, the idea of bond marketing evolved as a reaction of separate governments to the crisis of money flows. Thus, bond usage represents a strategy of borrowing costs from external sources such as foreign banks and institutions. The method is described as a payoff of numerous war expenditures. For instance, the author refers to several historical events that became the proponents of bonding.

Mainly, the wars between Florence, Siena, and Pisa are mentioned. In this way, the issues of non-productivity of military actions and its influences on the finance descend are brought up. Moreover, the author regards the story of the celebrated dynasty of Rothschilds, which was the most influential bond sponsor of military procedures that took place in Europe in the 19th century. Their investments brought the budget of Great Britain on a new level.

The author reflects on the crisis of American bond marketing by claiming that the Confederate investments, which were implied to be a step to staging bonds, turned out to be the initiators of inflation and military disruption. Finally, the book dwells on bonding as a promoter of the oligarchy that followed the appearance of French rentiers. The author concludes the chapter with a description of the technology revolution as a factor that reduced inflation and stabilized global finance.

Due to the Blowing Bubbles, the next stage of money ascending was the creation of companies and joint stocks. Due to the desperate financial status that was adopted by France, this country became the first to experience the “bubble” strategy. The author refers to the creation of stocks as to the revolutionary invention that allowed selling ownership and survived the challenging periods of World Wars.

The article Safe as Houses recounts the fundamental principles of property ownership ascending in the English-speaking world. In this context, the author implies that the innovation that arose at the time of the Great Depression served as a proponent of money loaning. Moreover, the link between the political processes and property ownership is traced since it is claimed that this type of material possession served as an elite privilege and accounted for access to voting rights.

The chapter provides a historical overview of the revolutionary acts that arose both in the USA and in Europe in response to the limited power of home-owning. Specifically, the author recounts the case of Ford Motor Car employees, who were killed during a rebellion. The author states that this event started the process of developing the so-called New Deal Act, which extended the local mortgaging.

The Federal Housing Administration brought a subsequent change to the regulation by providing federal support for mortgage insurers. In this way, the tendency founded a secondary market. The following step in reforming the quality of property ownership was a creation of Savings and Loan Association, which allowed receiving the deposits up to $40,000 from the central government. The tendency extended mortgaging options since the association could invest in any property. Despite the organization went bankrupt in a few years, it provided some new opportunities of a mortgage-backed security, which led to securitization and resulted in a complex transformation of the American property market.

The author concludes the article by mentioning some critical concerns that apply to homeownership. Mainly, he claims that widespread tendencies to invest in own homes lead to the disruption of the capital market.

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IvyPanda. (2020, August 12). Money History From the Middle Ages to Mercantilism. https://ivypanda.com/essays/money-history-from-the-middle-ages-to-mercantilism/

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"Money History From the Middle Ages to Mercantilism." IvyPanda, 12 Aug. 2020, ivypanda.com/essays/money-history-from-the-middle-ages-to-mercantilism/.

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IvyPanda. 2020. "Money History From the Middle Ages to Mercantilism." August 12, 2020. https://ivypanda.com/essays/money-history-from-the-middle-ages-to-mercantilism/.

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IvyPanda. "Money History From the Middle Ages to Mercantilism." August 12, 2020. https://ivypanda.com/essays/money-history-from-the-middle-ages-to-mercantilism/.

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