The lasting impact

The process of giving an individual the impression that a stock's value will plummet, leading them to sell their stock, just to buy it back before the value increases is now an established cornerstone of financial tactics. Wall Street and any stock exchange is riddled with uses of this strategy. Nathan Mayer Rothschild's manipulation of British bond prices is one of the first and clearest documented examples of this strategy.

There is a high degree of significance to this event. Looking past the multiple, ingenious uses of communication for a tangible result, this series of events demonstrates some key continuities in communication and finances. 

The continuity, that still exists to this day, is that high-speed, robust, and confidential communication is a key factor to fiscal success and that possessing knowledge that others don’t is the largest tactical advantage. While there are numerous differences between financial intricacies from the 1900s to now, especially with the advent of the Internet, many things remain the same. That notion is still a prevailing truth in today’s economy and market. 

There are immediate and long term implications for N M Rothschild, his close constituents, and the everyday person. First, the immediate implications of these events on N M Rothschild and his close constituents gained and eventually grew hundreds of millions of dollars. 

Additionally and specifically, this gain of wealth allowed for the Rothschild Firm to take over much of Britain’s banking system. For the everyday person, however, the effects are more implicit. 

For the middle class investor of Britain, at the time, the manipulation of British bond prices and the spreading false rumors of a defeat, made many people sell their bonds. Due to that intentional miscommunication, they were left out of possible gains and prevented middle class, bond-owning individuals from increasing their network.  We cannot begin to guess the number of savings and hopes wiped out by this engineered panic.