Bagehot
- 1873 - Book - Lombard Street - A Description of the Money Market, by Walter Bagehot
- 1915 - Book - The works and life of Walter Bagehot, by Walter Bagehot - https://archive.org/details/workslifeofwalte06bage/page/n9/mode/2up
- p2-218 - 1873 - Book - Lombard Street - A Description of the Money Market, by Walter Bagehot
- p88 - It was about the year 1688 that the word stockjobber was first heard in London. In the short
space of four years a crowd of companies, every one of which confidently held out to subscribers the hope of immense gains, sprang into existence—the Insurance Company... - p150 - "The main classes of joint stock companies which haveanswered are three:
- 1st. Those in which the capital is used not to work the business but to guarantee the business. Thus a banker's business—his proper business—does not begin while he is using his own money: it commences when he begins to use the capital of others. An insurance office in the long run needs no capital; the premiums which are received ought to exceed the claims which accrue. In both cases, the capital is wanted to assure the public and to induce it to trust the concern.
- 2ndly. Those companies have answered which have an exclusive privilege which they have used with judgment, or which possibly was so very profitable as to enable them to thrive with little judgment.
- 3rdly. Those which have undertaken a business both large and simple—employing more money than most individuals or private firms have at command, and yet such that, in Adam Smith's words, 'the operations are capable of being reduced to a routine, or such an uniformity of method as admits of no variation .
- p88 - It was about the year 1688 that the word stockjobber was first heard in London. In the short
- p2-218 - 1873 - Book - Lombard Street - A Description of the Money Market, by Walter Bagehot
- YPFS: If someone else held your position in a future crisis, what are a couple lessons that you learned through this crisis or things you wish you had at the time that others should be aware of?
- Baxter: I believe in the classic Bagehot dictum, that in a financial crisis you should lend freely, and it should be at a penalty rate and against good collateral.
- I also think that you need the right people in central banks to take the lead.
- You need people who understand markets and you need people who understand crises.
- You need a blend of doers and thinkers, and in the last crisis, we were fortunate enough to
have both of those skills.
2018 1120 - Lessons Learned Oral History Project Interview: Thomas Baxter - 19p