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December 27, 1772. Clifford & Co.—one of Europe's most prestigious banking houses—shuts its doors with nearly $1 billion in liabilities (in today's money). Within weeks, the contagion spreads: 20 banks collapse across Amsterdam, London, Hamburg, and beyond. The world's first global financial crisis.

The culprit? Mortgage-backed securities on Caribbean plantations, marketed as "safe and stable" to Dutch middle-class investors who trusted the reputation of shadow banks operating outside any regulation.

In 2025, history is rhyming.

BlackRock, Apollo, State Street, and KKR are packaging private credit for Main Street investors using identical structures, promises, and marketing language. The SEC just loosened restrictions. Your 401(k) provider will likely offer it soon. And credit rating agencies are already sounding alarms.

This episode breaks down:

• How Amsterdam's shadow banks created negotiaties—pooled plantation loans with zero transparency
• Why maturity mismatches (short-term liquidity promises on long-term illiquid assets) always end the same way
• The information asymmetry that benefits insiders and destroys retail investors
• What Alexander Fordyce's £300,000 loss triggered across three continents
• The 6 structural flaws of 1772 that exist in modern private credit
• What Moody's warned about in June 2025 (spoiler: systemic consequences)

Critical Modern Parallels: The same reputation-based investing. The same opacity. The same carry trade dynamics. The same maturity mismatches. The same "this time is different" mentality.

Except now it's being sold to your retirement account.

Key Takeaways:

• If something promises high returns + low risk + low volatility, at least one of those is false
• Ask these questions before investing: What are the actual companies? How leveraged? What happens in a redemption freeze? How are assets valued?
• The investors who survive crises aren't the ones maximizing returns during booms—they're the ones who survive busts
• When Wall Street packages something for retail, it's often because institutional money is getting cautious

Episode Resources:

• Full show notes with sources at thetimelessinvestor.com
• Subscribe to The Timeless Investor newsletter for deep dives into financial history
• Previous episode: Overend, Gurney & The Panic of 1866

About The Timeless Investor Show: Real estate fund manager and financial historian Arie van Gemeren explores the wreckage of financial catastrophes past and present, extracting timeless lessons for modern builders and investors. Because the best way to navigate the future is to understand the patterns of the past.

Think well. Act wisely. Build something timeless.

Episode Length: ~34 minutes

Topics: Financial History, Private Credit, Shadow Banking, Investment Strategy, Retirement Planning, Financial Crisis, Wealth Preservation, Amsterdam 1772, M

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Follow the Timeless Investor Show if you want to hear more of our podcast content.

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If you want to learn about new investment opportunities through Lombard Equities Group (accredited investors only), please reach out here.

Think Well. Act Wisely. Build Something Timeless.

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What happens when the world's most trusted currency becomes worthless overnight? Not through war or conquest, but fraud so massive it brings down an empire.

This is the story of the Potosí mines scandal - how Spanish officials debased silver coins, stole billions, and destroyed the foundation of global finance in the 1600s. The Spanish Empire went from controlling 25% of the world to defaulting repeatedly, all because trust in their currency collapsed.

But this isn't just ancient history. The patterns are repeating today with massive government debt, currency concerns, and recent financial scandals like Tricolor Holdings.

Key Topics Covered:

• The Potosí silver mines and Spanish imperial overreach
• How the fraud was committed and eventually detected
• Spain's addiction to borrowing against future silver shipments
• Why trust is the foundation of all financial systems
• Modern parallels to current monetary policy
• Why hard assets matter in uncertain times

Resources Mentioned:

• The Bitcoin Standard by Saifedean Ammous
• The Creature from Jekyll Island by G. Edward Griffin
• The Crisis of 33 AD (previous episode)

Connect with Arie:

• Newsletter: The Timeless Investor on Substack
• Website: www.lombardequities.com
• YouTube: https://www.youtube.com/@TheTimelessInvestor
• LinkedIn: https://www.linkedin.com/in/arievangemeren/
• Investment Opportunities: https://timelessinvestor.short.gy/9ppnK5

For more historical lessons on building timeless wealth, subscribe to The Timeless Investor Show.

Subscribe to the Timeless Investor Newsletter for our long-form content.

Follow the Timeless Investor Show if you want to hear more of our podcast content.

Get your own copy of Timeless Wealth: Real Estate Through the Ages.

If you want to learn about new investment opportunities through Lombard Equities Group (accredited investors only), please reach out here.

Think Well. Act Wisely. Build Something Timeless.

Send us a text

In May 1866, the world's largest financial institution collapsed in a single day, triggering the first global banking crisis and reshaping modern finance forever. Overend, Gurney & Company wasn't just any bank - they were THREE TIMES larger than their nearest competitor and considered the safest institution in the world. When they fell, over 200 companies failed, the Bank of England abandoned the gold standard, and the entire global financial system nearly imploded.

In this episode, real estate fund manager and financial historian Ari Van Gemeren reveals:

• How a conservative Quaker bank became a reckless shadow bank in just 5 years
• The IPO scam that let partners cash out before the collapse (perfectly legal in 1866!)
• Why the Bank of England's decision to let them fail changed capitalism forever
• The eerie parallels to Silicon Valley Bank, Lehman Brothers, and today's shadow banking system
• Critical lessons for real estate investors using bridge debt and short-term financing
• How "reputation lag" hides failing institutions until it's too late

From Victorian London to modern private credit funds, discover why this forgotten crisis holds the key to understanding financial collapses - and how to protect yourself from the next one.

Topics: Financial history, banking crisis, Black Friday 1866, Overend Gurney, Bank of England, shadow banking, financial collapse, Victorian era finance, bank runs, leverage crisis, real estate investing, private credit, bridge debt, financial panic, British Empire, discount houses, railway bubble, limited liability, systemic risk, too big to fail

Perfect for: Real estate investors, finance professionals, history enthusiasts, anyone interested in understanding financial crises and protecting their wealth

🎧 The Timeless Investor Show: Where history's greatest financial lessons meet modern investing strategy.

Subscribe to the Timeless Investor Newsletter for our long-form content.

Follow the Timeless Investor Show if you want to hear more of our podcast content.

Get your own copy of Timeless Wealth: Real Estate Through the Ages.

If you want to learn about new investment opportunities through Lombard Equities Group (accredited investors only), please reach out here.

Think Well. Act Wisely. Build Something Timeless.