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Historical Economic Crises
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The Great Depression
Causes: Stock market crash, excessive bank loans, overproduction. Consequences: Massive unemployment, bank failures, deflation. Date: 1929-1939.
The OPEC Oil Price Shock
Causes: 1973 Yom Kippur War, OPEC embargo, geopolitics. Consequences: High inflation, energy crisis, stagflation. Date: 1973.
The Asian Financial Crisis
Causes: Financial deregulation, real estate speculation, currency pegs. Consequences: Currency devaluations, IMF bailouts, political upheaval. Date: 1997-1998.
The Dotcom Bubble
Causes: Speculative investments in internet companies, easy capital, excessive optimism. Consequences: Stock market crash, bankruptcies, loss of investor confidence. Date: 1995-2001.
The Great Recession
Causes: Subprime mortgage crisis, financial deregulation, global economic imbalances. Consequences: Foreclosure crisis, global recession, austerity measures. Date: 2007-2009.
The South Sea Bubble
Causes: Speculation, misleading company projections, easy credit. Consequences: Stock market crash, lost fortunes, implementation of new financial regulations. Date: 1720.
The Panic of 1873
Causes: Overinvestment in railroads, banking failures, post-Civil War economic instability. Consequences: Long depression, widespread bankruptcies, labor unrest. Date: 1873.
The Tulip Mania
Causes: Speculative trading, novelty of tulips, social phenomena. Consequences: Economic collapse of the tulip market, personal financial ruin for many, change in Dutch trading policies. Date: 1637.
The Tequila Crisis
Causes: Sudden devaluation of the Mexican peso, fixed exchange rate policies, capital flight. Consequences: Emergency loan from the United States, deep Mexican recession, increased poverty. Date: 1994-1995.
The Panic of 1837
Causes: Speculative lending practices, land bubble, Andrew Jackson’s economic policies. Consequences: Bank failures, deflation, economic depression lasting seven years. Date: 1837-1844.
The Panic of 1893
Causes: Overbuilding and speculation, labor disorders, agricultural depression. Consequences: National Cordage Company’s failure, countless business bankruptcies, widespread unemployment. Date: 1893-1897.
The Hyperinflation in the Weimar Republic
Causes: Reparation payments post-WWI, excessive printing of money, loss of confidence in currency. Consequences: Price levels skyrocketing daily, barter economy, paving way for political extremism. Date: 1921-1924.
The 1998 Russian Financial Crisis
Causes: Low commodity prices, fiscal deficit, structural weaknesses in the economy. Consequences: Devaluation of the Ruble, default on debt, IMF intervention. Date: 1998.
Black Monday
Causes: Computerized trading, illiquidity, market psychology. Consequences: Dow Jones Industrial Average (DJIA) fell by 22.6%, panic selling, regulatory changes. Date: October 19, 1987.
The Savings and Loan Crisis
Causes: Interest rate environment, risky real estate lending, regulatory failures. Consequences: Collapse of savings and loan institutions, taxpayer-funded bailouts, industry restructuring. Date: Late 1980s to early 1990s.
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