Sunday, February 15, 2009

The Panic of 1857

Two years before massive spiritual revival swept across Britain and America in 1859, there was a massive economic collapse.

The Panic of 1857 followed a recession in 1856, with banks and businesses failing in the US. 5000 American businesses collapsed in one year - and the effects soon spread to Europe.

Just prior to the Panic, there had been the famous Californian Gold Rush - get rich quick schemes, rising wages and retail prices fuelling what looked like unprecedented prosperity and affluence.

Then overseas investors started to withdraw from American banks, the global value of the dollar went down, property and land prices collapsed - and to top it all a huge shipment of US gold bullion was lost at sea.

Google it for yourself. There's nothing new under the sun.