The Biggest Stock Bubble You’ve Never Heard Of: The Souk Al-Manakh Meltdown（原声文稿）

once said, the mother of all evil is speculation.

relationships underlying any economic bubble, you'll probably agree with him.

perhaps a lesser-known bubble, the tulip mania of 1637, as much as a mansion on Amsterdam's Grand Canal.

unique in their own respective ways, they pale in comparison to what some would argue was the greatest asset bubble of all time.

come as a surprise, considering Q8 is geographically 551 times smaller than citizens in 1982, which begs the question, how did the title of the world's third largest stock market, further delay, let's explore the spectacular rise and bubble, the aftermath of which resulted in the equivalent woman, and child. The infamous Souk Almanach.

jackpot of natural resources, oil, so much so that they still control over 100 billion barrels.

economic storm, a storm as fascinating as it was devastating.

production output in the 60s began to exponentially cash for the first time, an unprecedented phenomenon.

high-ranking government officials, the rapid rise in the as well as the unprecedented global rise in the price of oil, which quadrupled nations embargoed the US and other countries in 1973 Kippur War.

The commodities price was driven even higher Middle East, lowering supply and increasing demand, followed was an economic catastrophe for nations that United States, as it aggravated a severe gasoline shortage causing multi-hour lineups at gas pumps nationwide.

But unlike the West, strategic position in the country's history.

park their newfound fortunes, the government 1977, called the Borsa.

But much to the frustration of dominated by the country's wealthy, who mostly traded stock, effectively crowding out smaller investors.

elite, the heavily regulated Borsa was home to only IPOs based on a fear that out-of-control speculation would capsize the market.

stocks to choose from, the Souk Almanach was formed the following year, in 1978.

companies that didn't meet the strict standards of the Royal Chic.

resting place for camels, was the wild west of the investor, as oil prices continued to climb largely through wealthier the sidelines feeling left out only to inevitably rampant, it wasn't long before the suc earned a reputation growing stock markets rise can primarily be attributed to investors to buy near-infinite shares of stocks with cash, regardless of the investor's income or assets.

purchase as many shares of stock as their hearts desired.

culture, which prohibited defaulting on a loan unimaginable, bringing shame on the defaulters entire family.

After all, the last time a small panic occurred on the government would always be there to bail out the market.

with a faith that the government would never allow a crash to take place.

because investors were able to lock in profits before their checks came due.

capital, meant that no stock price was considered too high.

government employee in his early 20s from Q8's passport Port Office borrowed an astonishing $14 billion with his post-dated checks.

the average price increase for that first year was 63%.

others growing 13 to 15-fold within a matter of weeks.

One of these high-flying stocks was Gulf Medical, a failed hotel-turned-hospital, investors that its IPO raised 2,600 times more than the teachers just to process the pallets of investment paperwork this rampant greed came the exact problem that the scams masquerading as legitimate companies that did less profits.

The lure of near instant wealth Minister of Commerce, who was supposed to be in charge Casino, along with several members of Kuwait's parliament.

1982, some 29,000 checks totaling $94 billion were the Sukh Almanach were simply worthless scraps of paper.

commonly doubling on an hourly basis, the unofficial billion to over $100 billion, making it the third largest equity market on earth.

tried depositing a check early, which bounced.

the government would not step in, stating, speculators should pay for their sins in defaulting on post-dated checks, triggered instantaneous and widespread panic.

Historic data is somewhat murky about what followed next, but it's said that trading stopped altogether, leaving creditors holding checks, totaling 12 figures of debt, or the equivalent equivalent of $239,000 for every Q80 man, woman, and child.

per capita in 2018 was approximately $66,000.

catastrophic that the country had no choice but to shut scratch, this time calling its market the Q8 stock exchange.

Unfortunately for Q8, its luck had finally run out, as the country was thrust which slashed the value of oil by some 80% over Iraqi forces then invaded the country's need for ignored by other investors, or the much-needed necessity of exerting caution during booming times caught up with the market's hype and the hot stock du jour.

Thank you again for watching and until next time, stay smart.