The Bankwatch

Tracking the consumer evolution of financial services

The (real) Great Depression of ….. 1873

Today it is banks – in 1873 it was railroads.  Today it is China – in 1873 it was America.  The more things change …….  no doubt we will survive …  and no doubt we will learn nothing.

Panic of 1873 | Wikipedia

The New York Stock Exchange closed for ten days starting September 20. Of the country’s 364 railroads, 89 went bankrupt. A total of 18,000 businesses failed between 1873 and 1875. Unemployment reached 14% by 1876, during a time which became known as the Long Depression. Construction work lagged, wages were cut, real estate values fell and corporate profits vanished.

More here at The Chronicle Review The Real Great Depression (link broken) new alternative link

The crash came in Central Europe in May 1873, as it became clear that the region’s assumption s about continual economic growth were too optimistic. Europeans faced what they came to call the American Commercial Invasion. A new industrial superpower had arrived, one whose low costs threatened European trade and a European way of life.

As continental banks tumbled, British banks held back their capital, unsure of which institutions were most involved in the mortgage crisis.

Written by Colin Henderson

October 6, 2008 at 18:18

Posted in Uncategorized

3 Responses

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  1. From 1873 to 1933 is 60 years, from 1933 to 2008 is 75 years, take out the longest and most unusual boom period in world history running from Clinton 1993 to now, and you get … 60 years. Were we due? Is it cyclical in true capitalist systems to have a mega shakeout every 60 years (with anomolies)?

    Rob Findlay

    October 6, 2008 at 20:42

  2. @Rob … nice. You have to believe there is a pattern.

    Colin

    October 6, 2008 at 22:53

  3. Screw it!

    Will Smith

    December 9, 2008 at 11:13


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