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William Butler Ogden was an American politician and railroad executive who served as the first Mayor of Chicago. He was referred to as "the Astor of Chicago." He was, at one time, the city's richest citizen.
The Chicago River is a system of rivers and canals with a combined length of 156 miles (251 km) that runs through the city of Chicago, including its center. Though not especially long, the river is notable because it is one of the reasons for Chicago's geographic importance: the related Chicago Portage is a link between the Great Lakes and the Mississippi River Basin, and ultimately the Gulf of Mexico.
The Illinois and Michigan Canal connected the Great Lakes to the Mississippi River and the Gulf of Mexico. In Illinois, it ran 96 miles (154 km) from the Chicago River in Bridgeport, Chicago to the Illinois River at LaSalle-Peru. The canal crossed the Chicago Portage, and helped establish Chicago as the transportation hub of the United States, before the railroad era. It was opened in 1848. Its function was partially replaced by the wider and deeper Chicago Sanitary and Ship Canal in 1900, and it ceased transportation operations with the completion of the Illinois Waterway in 1933.
The Illinois River is a principal tributary of the Mississippi River at approximately 273 miles (439 km) in length. Located in the U.S. state of Illinois, the river has a drainage basin of 28,756.6 square miles (74,479 km2). The Illinois River begins with the confluence of the Des Plaines and Kankakee rivers in the Chicago metropolitan area, and it generally flows to the southwest across Illinois, until it empties into the Mississippi near Grafton, Illinois. Its drainage basin extends into southeastern Wisconsin, northwestern Indiana, and a very small area of southwestern Michigan in addition to central Illinois. Along its shores are several river ports, including Peoria, Illinois. Historic and recreation areas on the river include Starved Rock, and the internationally important wetlands of the Emiquon Complex and Dixon Waterfowl Refuge.
Summit is a village in Cook County, Illinois, United States. The population was 11,161 at the 2020 census. The name Summit, in use since 1836, refers to the highest point on the Chicago Portage between the northeast-flowing Chicago River and the southwest-flowing Des Plaines River located just north of the village.
Le Roy is a city in McLean County, Illinois, United States. The population was 3,512 at the 2020 census.
An economic bubble is a period when current asset prices greatly exceed their intrinsic valuation, being the valuation that the underlying long-term fundamentals justify. Bubbles can be caused by overly optimistic projections about the scale and sustainability of growth, and/or by the belief that intrinsic valuation is no longer relevant when making an investment. They have appeared in most asset classes, including equities, commodities, real estate, and even esoteric assets. Bubbles usually form as a result of either excess liquidity in markets, and/or changed investor psychology. Large multi-asset bubbles, are attributed to central banking liquidity.
John Law was a Scottish-French economist who distinguished money, a means of exchange, from national wealth dependent on trade. He served as Controller General of Finances under the Duke of Orleans, who was regent for the juvenile Louis XV of France. In 1716, Law set up a private Banque Générale in France. A year later it was nationalised at his request and renamed as Banque Royale. The private bank had been funded mainly by John Law and Louis XV; three-quarters of its capital consisted of government bills and government-accepted notes, effectively making it the nation's first central bank. Backed only partially by silver, it was a fractional reserve bank. Law also set up and directed the Mississippi Company, funded by the Banque Royale. Its chaotic collapse has been compared to the 17th-century tulip mania parable in Holland. The Mississippi bubble coincided with the South Sea bubble in England, which allegedly took ideas from it. Law was a gambler who would win card games by mentally calculating odds. He propounded ideas such as the scarcity theory of value and the real bills doctrine. He held that money creation stimulated an economy, paper money was preferable to metal, and dividend-paying shares a superior form of money. The term "millionaire" was coined for beneficiaries of Law's scheme.
The Panic of 1837 was a financial crisis in the United States that began a major depression, which lasted until the mid-1840s. Profits, prices, and wages dropped, westward expansion was stalled, unemployment rose, and pessimism abounded.
The Mississippi Company was a corporation holding a business monopoly in French colonies in North America and the West Indies. In 1717, the Mississippi Company received a royal grant with exclusive trading rights for 25 years. The rise and fall of the company is connected with the activities of the Scottish financier and economist John Law who was then the Controller General of Finances of France. Though the company itself started to become profitable and remained solvent until the collapse of the bubble, when speculation in French financial circles and land development in the region became frenzied and detached from economic reality, the Mississippi bubble became one of the earliest examples of an economic bubble.
The 2000s United States housing bubble or house price boom or 2000shousing cycle was a sharp run up and subsequent collapse of house asset prices affecting over half of the U.S. states. In many regions a real estate bubble, it was the impetus for the subprime mortgage crisis. Housing prices peaked in early 2006, started to decline in 2006 and 2007, and reached new lows in 2011. On December 30, 2008, the Case–Shiller home price index reported the largest price drop in its history. The credit crisis resulting from the bursting of the housing bubble is an important cause of the Great Recession in the United States.
A real-estate bubble or property bubble is a type of economic bubble that occurs periodically in local or global real estate markets, and it typically follows a land boom. A land boom is a rapid increase in the market price of real property such as housing until they reach unsustainable levels and then declines. This period, during the run-up to the crash, is also known as froth. The questions of whether real estate bubbles can be identified and prevented, and whether they have broader macroeconomic significance, are answered differently by schools of economic thought, as detailed below.
The Japanese asset price bubble was an economic bubble in Japan from 1986 to 1991 in which real estate and stock market prices were greatly inflated. In early 1992, this price bubble burst and Japan's economy stagnated. The bubble was characterized by rapid acceleration of asset prices and overheated economic activity, as well as an uncontrolled money supply and credit expansion. More specifically, over-confidence and speculation regarding asset and stock prices were closely associated with excessive monetary easing policy at the time. Through the creation of economic policies that cultivated the marketability of assets, eased the access to credit, and encouraged speculation, the Japanese government started a prolonged and exacerbated Japanese asset price bubble.
The Chicago Portage was an ancient portage that connected the Great Lakes waterway system with the Mississippi River system. Connecting these two great water trails meant comparatively easy access from the mouth of the St. Lawrence River on the Atlantic Ocean to the Rocky Mountains, and the Gulf of Mexico. The approximately six-mile link had been used by Native Americans for thousands of years during the Pre-Columbian era for travel and trade.
The Florida land boom of the 1920s was Florida's first real estate bubble. This pioneering era of Florida land speculation lasted from 1924 to 1926 and attracted investors from all over the nation. The land boom left behind entirely new, planned developments incorporated into towns and cities. Major investors and speculators such as Carl G. Fisher also left behind a new history of racially deed restricted properties that segregated cities for decades. Among those cities at the center of this bubble were Miami Beach, Coral Gables, Hialeah, Miami Springs, Opa-locka, Miami Shores, and Hollywood. It also left behind the remains of failed development projects such as Aladdin City, Boca Raton, Chevelier, Fulford-by-the-Sea, Interocean City, Isola di Lolando, Okeelanta, Palm Beach Ocean, Poinciana, and Sun City. The land boom shaped Florida's future for decades and created entire new cities out of the Everglades land that remain today. The story includes many parallels to the real estate boom of the 2000s, including the forces of outside speculators, easy credit access for buyers, and rapidly appreciating property values, ending in a financial collapse that ruined thousands of investors and property owners, and crippled the local economy for years thereafter.
Observers and analysts have attributed the reasons for the 2001–2006 housing bubble and its 2007–10 collapse in the United States to "everyone from home buyers to Wall Street, mortgage brokers to Alan Greenspan". Other factors that are named include "Mortgage underwriters, investment banks, rating agencies, and investors", "low mortgage interest rates, low short-term interest rates, relaxed standards for mortgage loans, and irrational exuberance" Politicians in both the Democratic and Republican political parties have been cited for "pushing to keep derivatives unregulated" and "with rare exceptions" giving Fannie Mae and Freddie Mac "unwavering support".
Wilcox v. Jackson, 38 U.S. 498 (1839), sometimes nicknamed the "Beaubien Land Case" was a legal action decided by the United States Supreme Court concerning the land under Fort Dearborn shortly after incorporation of Chicago as a town in Cook County, Illinois.
The 2005 Chinese property bubble was a real estate bubble in residential and commercial real estate in China. The New York Times reported that the bubble started to deflate in 2011, while observing increased complaints that members of the middle-class were unable to afford homes in large cities. The deflation of the property bubble is seen as one of the primary causes for China's declining economic growth in 2013.
The Alabama real estate bubble of the 1810s was a real estate bubble centered on Huntsville, caused by increasing cotton prices resulting from demand from English textile manufacturers, relatively high cotton yields in Alabama, as well as general speculation. In 1817, property in Madison County sold for around $2 per acre, while in 1818 it sold for $7.40 per acre on average, with some tracts reportedly sold "at prices ranging from $20 to $78 per acre," at a time when land on the American frontier was sold for $2 per acre. By 1819, acreage prices plummeted to around $0.20 per acre due to the Panic of 1819 and increasing global supply of cotton.
The Canadian property bubble refers to a significant rise in Canadian real estate prices from 2002 to present which some observers have called a real estate bubble. The Dallas Federal reserve rated Canadian real estate as "exuberant" beginning in 2003. From 2003 to 2018, Canada saw an increase in home and property prices of up to 337% in some cities. In 2016, the OECD warned that Canada's financial stability was at risk due to elevated housing prices, investment and household debt. By 2018, home-owning costs were above 1990 levels when Canada saw its last housing bubble burst. Bloomberg Economics ranked Canada as the second largest housing bubble across the OECD in 2019 and 2021. Toronto scored the highest in the world in Swiss bank UBS' real estate bubble index in 2022, with Vancouver also scoring among the 10 riskiest cities in the world. By 2023 Canada’s nonfinancial debt exceeded 300% of GDP and household debt surpassed 100% of GDP, both higher than the levels seen in the United States before the 2008 global financial crisis.
References
- ↑ Will, George F., "National Transportation Debate in a Nutshell: Infrastructure Is Economic Destiny." The Philadelphia Inquirer. Available at http://articles.philly.com/1990-03-12/news/25904448_1_infrastructure-population-growth-gnp.
- ↑ "1897—Chicago Street Name Origins". chicagology.com. Retrieved April 6, 2024.
- 1 2 Hoyt, Homer. 1933. One Hundred Years of Land Values in Chicago. Chicago: The University of Chicago Press.
- 1 2 3 4 Glaeser, Edward L., A Nation of Gamblers: Real Estate Speculation and American History (working paper). Retrieved April 7, 2013 from http://www.hks.harvard.edu/var/ezp_site/storage/fckeditor/file/pdfs/centers-programs/centers/taubman/working_papers/Glaeser_Ely.pdf.
- 1 2 Walters, William D. 2010. Selling Location: Illinois Town Advertisements, 1835–1837. Department of Geography-Geology, Illinois State University. Available at http://geo.illinoisstate.edu/downloads/walters_towns.pdf.
- ↑ Betting the House. 2013. The Economist. Available at https://www.economist.com/news/finance-and-economics/21575737-lessons-americas-long-history-property-booms-betting-house.