Panic+of+1819

Panic of 1819:


 * Napoleon decreased amount of productive farm land ( Napoleon burned farms)
 * 1) America farm products were skyrocketing in value because we could sell it to Europe because they couldn’t make it for themselves
 * 2) Western land is getting more valuable
 * 3) Speculators rushing to west and buying up lots of land and waiting for farmers to come to sell it to them
 * 4) Speculators borrowing money from banks to buy cheap land, risky loans for banks
 * 5) But Europe gets back on feet
 * Begins producing food again
 * Less of market for a US
 * Food prices go down
 * Farmers don’t make as much money
 * Value of land goes down
 * Speculators aren’t selling land
 * Loans aren't being paid back
 * 1) Risky banks fail because the national loans start to call in loans from them, they can't pay the national bank
 * 2) People hear banks are failing, everyone comes to get money out of bank
 * 3) Causes banks to fail, banks run out of money, no more to give people running to retrieve money
 * 4) Called a "BANK RUN"