| 178 - America in Depression: A Call to National Repentance |
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| Written by Patrick Morley |
| Thursday, April 15 2010 15:48 |
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The Panic of 1857 In 1857, a bank failed in New York City because of widespread embezzlement. The country was on the brink of a banking crisis anyway, and that event triggered an economic meltdown that has become known as the Panic of 1857. New York City banks closed from mid-October to mid-December. Foreign investors withdrew their money from U.S. banks. The stock market crashed and lost 66% of its value over the next five years. Railroads went bankrupt. Grain prices collapsed affecting farmers throughout the United States. Speculative real estate investors lost everything. The full effects lasted until after the Civil War ended eight years later.
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