In the mid-15th century, the economy of late-medieval England took a turn for the worse. The result was decades of economic stagnation and a reversal of a paradigm that dated to the end of the Great Plague of the 1340s. To speak of economic recessions or depressions in a pre-modern period, especially those whose root…
In the 17th century, one of the first recorded speculative bubbles held Holland firmly in its grip and it involved one of the most unlikely of assets, not stocks or bonds or real estate, but tulip bulbs. Even more than the time and place, it is the asset involved that makes the tale of ‘tulip…
One of the most pronounced bubbles in 19th century finance was a boom in emerging market debt that hazardously swelled during the 1820s. During that decade, sovereign bonds were issued by several newly independent countries following Latin America’s successful revolt against Spanish colonial rule. These newborn borrowers found a strong market for their first bonds…
Over two centuries ago, a single speculator set off a chain reaction that triggered a global financial panic. Perhaps surprisingly, that speculator was reacting to history unfolding thousands of miles away and his bet had effects across continents. Linking these events was a single commodity of great importance to 18th century trade, tea. The Crisis…
In the spring of 1866, London’s money markets were shaken by the collapse of a single large and previously illustrious firm. The Panic of 1866 was one of the most severe in Victorian finance. However, it was also handled in a surprisingly effective manner by the Bank of England, then merely a private bank, albeit…
Financial crises have been around longer than many realize. Imagine reading that the stock market plunges by 50%, recession follows, investment firms and banks fail across the country, and the government seeks to get to the bottom of what happened. Could that be describing the Great Depression or the most recent recession? In either case,…
