International Finance and Responsible Financial Management

Starting in 1919, the United States entered a period of high prosperity, with a thriving stock market. But on October 23, 1929, stock prices in the United States fell at an ever-increasing rate and 2.5 million shares were sold within an hour but no one took them. Since then, the American economy has faced its darkest days .  According to the chart below, the Dow Jones index reached 381.77 on September 3, 1929. However, 34 months later, the average is only 41.22,drop 89%. The reason for this is the American concept of over-consumption. In 1920, after America entered the electric age, people's demand for new products such as cars and refrigerators kept increasing, thus giving rise to a new consumption mode -- installment plan. In terms of performance, it reflects the improvement of American living standards. But this has created an illusion of economic prosperity. After the economic collapse, people did not have savings or even negative savings, which made them unable to cope ...

How did the   Ponzi  scheme attract s  investors ? It is usually the invention of a convincing investment to lure investors into putting money in and promised they would get high returns. At first, it seems very profitable and credible because it ’ s high return and payed the return on time. So, more investors are attracted depends on it ’ s high returns. How did the Ponzi scheme get money? Actually, there is no good investment project to invest, this is just an excuse to cheat money from victims. These cheaters use the money of the later investors to pay the high returns of the previous investors. It is similar to a snowball. As long as the snowball is bigger and more money is available, more investors will be attracted. And when the initial investors start to make profits, they will be more convinced of the authenticity of the project and may introduce their relatives and friends to join. At the end of a Ponzi  scheme, it's usually the previous  inves...

Dragon ’ s Den It is a British TV programme that provide connections between   entrepreneurs  and investors t hrough the form of television programme. There are five wealthy investors in this TV programme, they will use their own money to invest attractive projects from entrepreneurs. The entrepreneurs can sell their shares to get money from investors in order to operate their companies. The August 26, 2018 episode I watched, the first two entrepreneurs  come on the stage whose project is a pasta delivery. They first introduced what their company does, and how they make money. They can delivery their five-star homemade pasta to the whole UK in one to two days. Because two of entrepreneurs all come from Italy, their advantage is more authentic than any other handmade pasta in the UK, and you can enjoy fantastic Italian homemade pasta at home. However, these two entrepreneurs needs much more money than their company ’ s value.  From my own opinion,...

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