Saturday, November 15, 2008

Name the Source

"Confidence in the banking system evaporated. Investors panicked and tried to liquidate. With everyone trying to sell at the same time, the value of investments plummeted. Each businessman in the commercial chain was trying to save himself. At the end of the chain, the little people, the farmers and workers, the consumers, had less recourse when their debts were called in. They lost their mortgaged homes and farms. As their demand for goods and services shriveled, those who sold to them went bankrupt and laid off their employees."

Daniel Walker Howe, What Hath God Wrought, page 143, describing the Panic of 1819

Who says history doesn't repeat itself?

Food for thought - the hard times of 1819 lasted three to four years, varying on where you lived in the country.

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