This Happens Before Every Financial Crisis

Every financial crisis in US history, in order, in 12 minutes: from the first Wall Street crash in 1792 to the bank run of 2023. Fourteen crises, and most of them are the same story: something everybody is sure about, bought with borrowed money, until somebody asks for it back. Sam, a stick figure, walks you through the Panic of 1792, 1819, 1837, 1857, 1873, 1893 and 1907, the 1929 crash and the Great Depression, the savings and loan crisis, Black Monday 1987, the dot-com bubble, the 2008 financial crisis, the 2020 crash and Silicon Valley Bank. Then the pattern: every crisis leaves a new rule behind, and the next one comes in through a different door. CHAPTERS 0:00 The first crash and the latest one 0:35 1792: The first one (Duer and Hamilton) 1:16 1819: Land on credit 1:51 1837: Jackson, the pet banks, "Martin Van Ruin" 2:30 1857: Railroads, the telegraph, a ship of gold 3:09 1873: The first "Great Depression" 3:48 1893: Coxey's march and J. P. Morgan's gold 4:37 1907: One man with a library 5:28 1929: The crash and the bank failures 6:35 The 1980s: Savings and loan crisis 7:18 1987: Black Monday 7:55 2000: The dot-com bubble 8:35 2008: The housing crash 9:29 2020: The fastest crash 10:05 2023: Silicon Valley Bank 10:51 The ones I skipped 11:24 The pattern: same recipe, faster 12:25 Years since the last crisis WHAT'S SOLID AND WHAT'S OURS The list of fourteen is our pick of the big ones; historians count differently (one study finds 7 major and 19 minor banking panics between 1825 and 1929 alone). "The same crisis in a different outfit" and "each rule is built for the last crisis" are our reading of the facts, not a quote from a source. Some figures are estimates: unemployment in the 1890s (the Federal Reserve's history site says 17 to 19 percent, another series peaks near 12), the 9,000 banks of 1930 to 1933 (banks that suspended operations), house prices in 2008 (about 27 percent on the Case-Shiller national index). The 89 railroads and 18,000 businesses of 1873 come from one source (PBS). The story of Morgan locking the library doors is told by the Morgan Library itself; some accounts are more cautious. $42 billion is the California regulator's figure for withdrawals on March 9, 2023; the Federal Reserve says "over $40 billion". SOURCES Federal Reserve History, Banking Panics of the Gilded Age: https://www.federalreservehistory.org... Federal Reserve History, The Panic of 1907: https://www.federalreservehistory.org... Federal Reserve History, Stock Market Crash of 1929: https://www.federalreservehistory.org... Federal Reserve History, Bank Holiday of 1933: https://www.federalreservehistory.org... Federal Reserve History, Savings and Loan Crisis: https://www.federalreservehistory.org... Federal Reserve History, Stock Market Crash of 1987: https://www.federalreservehistory.org... Federal Reserve History, The Great Recession: https://www.federalreservehistory.org... New York Fed, Crisis Chronicles (1792): https://libertystreeteconomics.newyor... New York Fed, Crisis Chronicles (1857): https://libertystreeteconomics.newyor... NBER, US business cycle dates: https://www.nber.org/research/data/us... FDIC, history: https://www.fdic.gov/90years FDIC Banking Review, The Cost of the Savings and Loan Crisis: https://archive.fdic.gov/view/fdic/9804 The Morgan Library, the Panic of 1907: https://www.themorgan.org/exhibitions... Financial Crisis Inquiry Commission, conclusions: https://fcic-static.law.stanford.edu/... Federal Reserve, review of Silicon Valley Bank (April 2023): https://www.federalreserve.gov/public... SEC, market-wide circuit breakers in March 2020: https://www.sec.gov/files/rules/sro/n... Jalil, A New History of Banking Panics in the United States, 1825-1929: https://www.economics.uci.edu/files/d... Reinhart and Rogoff, This Time Is Different (Princeton University Press): https://press.princeton.edu/books/pap... Plain Paper Money: money stories, explained by a stick figure named Sam. This video is for education and entertainment. It is not financial advice. #FinancialCrisis #StockMarketCrash #EconomicHistory