The Financial Crisis of 1873

From Scott Reynolds Nelson, a professor of history at the College of William and Mary, comes a thought piece on the similarities of the current financial crisis and the 1873 worldwide banking crisis.
The Real Great Depression –

As in 1873, a complex financial pyramid rested on a pinhead. Banks are hoarding cash. Banks that hoard cash do not make short-term loans. Businesses large and small now face a potential dearth of short-term credit to buy raw materials, ship their products, and keep goods on shelves.

Sounds familiar, no? Worth the read.


One response to “The Financial Crisis of 1873”

  1. Great read! I'm writing a paper about it right now. Comparing it to the current crisis.