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3rd June 2009
So you turn on the tv, radio, get on the net, read newspapers and magazines and what do you see splashed across the pages? Financial gloom, soaring inflation, currencies losing value, stock markets spiraling downward, companies downsizing and cutting jobs and so it goes. Now, folks, this is not the first economic recession to befall us. What's going on here?
I decided to do a search on recessions from the past in U.S. history and I was amazed to find that most of them were caused by our banking and financial system in one way or another. Is it any wonder then that our latest crisis caused by the housing market crash better known as the subprime crisis, has led us into yet another historic recession? As the list goes on take note of the time between recessions. Below is a list I got from Wikipedia with the history of U.S. recessions.
Name |
Dates |
Duration |
Time Since Start Of Previous Entry |
Causes |
Panic of 1797 |
1797–1800 |
3 years |
- |
The effects of the deflation of the Bank of England crossed the Atlantic Ocean to North America and disrupted commercial and real estate markets in the United States and the Caribbean. Britain's economy was greatly affected by developing disflationary repercussions because it was fighting France in the French Revolutionary Wars at the time. |
Depression of 1807 |
1807–1814 |
7 years |
10 years |
The Embargo Act of 1807 was passed by the United States Congress under President Thomas Jefferson. It devastated shipping-related industries. The Federalists fought the embargo and allowed smuggling to take place in New England. |
Panic of 1819 |
1819–1824 |
5 years |
12 years |
The first major financial crisis in the United States featured widespread foreclosures, bank failures, unemployment, and a slump in agriculture and manufacturing. It also marked the end of the economic expansion that followed the War of 1812. |
Panic of 1837 |
1837–1843 |
6 years |
18 years |
A sharp downturn in the American economy was caused by bank failures and lack of confidence in the paper currency. Speculation markets were greatly affected when American banks stopped payment in specie (gold and silver coinage). |
Panic of 1857 |
1857–1860 |
3 years |
20 years |
Failure of the Ohio Life Insurance and Trust Company burst a European speculative bubble in United States railroads and caused a loss of confidence in American banks. Over 5,000 businesses failed within the first year of the Panic, and unemployment was accompanied by protest meetings in urban areas. |
Panic of 1873 |
1873–1879 |
6 years |
16 years |
Economic problems in Europe prompted the failure of the Jay Cooke & Company, the largest bank in the United States, which burst the post-Civil War speculative bubble. The Coinage Act of 1873 also contributed by immediately depressing the price of silver, which hurt North American mining interests. |
Long Depression |
1873–1896 |
23 years |
- |
The collapse of the Vienna Stock Exchange caused a depression that spread throughout the world. It is important to note that during this period, the global industrial production greatly increased. In the United States, for example, industrial output increased fourfold. |
Panic of 1893 |
1893–1896 |
3 years |
20 years |
Failure of the United States Reading Railroad and withdrawal of European investment led to a stock market and banking collapse. This Panic was also precipitated in part by a run on the gold supply. |
Panic of 1907 |
1907–1908 |
1 year |
14 years |
A run on Knickerbocker Trust Company deposits on October 22, 1907, set events in motion that would lead to a severe monetary contraction. |
Post-World War I recession |
1918–1921 |
3 years |
11 years |
Severe hyperinflation in Europe took place over production in North America. It was a brief but very sharp recession and was caused by the end of wartime production, along with an influx of labor from returning troops. This in turn caused high unemployment. |
Great Depression |
1929–1933 |
43 months |
21 months |
Stock markets crashed worldwide, and a banking collapse took place in the United States. Although sometimes dated as lasting until the Second World War, the US economy was growing again by 1933, and technically the U.S. was not in recession from 1933 to 1937 |
Recession of 1937 |
1937–1938 |
13 months |
50 months |
The Recession of 1937 is only considered minor when compared to the Great Depression, but is otherwise among the worst recessions of the 20th century. |
Recession of 1945 |
Feb-Oct 1945 |
8 months |
80 months |
The decline in government spending at the end of World War II led to an enormous drop in Gross Domestic Product making this technically a recession. The Post War years were unusual in a number of ways and this era has little in common with other recessions. |
Recession of 1948 |
Nov 1948–Oct 1949 |
11 months |
37 months |
The 1948 recession was a relatively brief cyclical economic downturn, the mildness of which led to confidence in the notion that the Post War-era would be a period of stronger growth. |
Recession of 1953 |
July 1953–May 1954 |
10 months |
45 months |
After a post-Korean War inflationary period, more funds were transferred into national security. The Federal Reserve changed monetary policy to be more restrictive in 1952 due to fears of further inflation. |
Recession of 1958 |
Aug 1957–April 1958 |
8 months |
39 months |
Monetary policy was tightened during the two years preceding 1957, followed by an easing of policy at the end of 1957. The budget balance resulted in a change in budget surplus of 0.8% of GDP in 1957 to a budget deficit of 0.6% of GDP in 1958, and then to 2.6% of GDP in 1959. |
Recession of 1960-1 |
April 1960–Feb 1961 |
10 months |
24 months |
After President Kennedy's 30 January 1961 call for increased government spending to improve the Gross National Product and to reduce unemployment, the 1960-61 recession ended in February. |
Recession of 1969-70 |
Dec 1969–Nov 1970 |
11 months |
106 months |
The relatively mild 1969 recession is thought to have been mostly caused by the Federal Reserve raising interest rates to hold down inflation. |
1973 oil crisis 1973–1974 stock market crash |
Nov. 1973– March 1975 |
16 months |
36 months |
A quadrupling of oil prices by OPEC coupled with high government spending due to the Vietnam War led to stagflation in the United States. |
1980 recession |
Jan-July 1980 |
6 months |
58 months |
The NBER considers a short recession to have occurred in 1980, followed by a short period of growth and then a deep recession. Unemployment remained relatively elevated inbetween recessions. The early '80s are sometimes referred to as a "double dip" or "w-shaped" recession. |
Early 1980s recession |
July 1981–Nov 1982 |
16 months |
12 months |
The Iranian Revolution sharply increased the price of oil around the world in 1979, causing the 1979 energy crisis. This was caused by the new regime in power in Iran, which exported oil at inconsistent intervals and at a lower volume, forcing prices to go up. Tight monetary policy in the United States to control inflation led to another recession. The changes were made largely because of inflation that was carried over from the previous decade due to the 1973 oil crisis and the 1979 energy crisis. |
Early 1990s recession |
July 1990–March 1991 |
8 months |
92 months |
Industrial production and manufacturing-trade sales increased in early 1991. |
Early 2000s recession |
Mar-Nov 2001 |
8 months |
120 months |
The collapse of the dot-com bubble, the September 11th attacks, and accounting scandals contributed to a relatively mild contraction in the North American economy. |
Late 2000s recession |
Dec 2007-current |
ongoing |
73 months |
The collapse of the housing market led to bank collapses in the US and Europe, causing the amount of available credit to be sharply curtailed, resulting in huge liquidity and solvency crises. In addition, record oil prices and food prices, stock markets crashed globally, and several high profile banking and manufacturing giants collapsed in the United States. |
Interesting to see how history repeats itself although I haven't quite figured out a mathematical formula to the time between recessions but I do know now the economic factors to look out for that lead to a financial recession. Share your thoughts!
"Too much money is as demoralizing as too little, and there's no such thing as exactly enough. " - Mignon McLaughlin, The Second Neurotic's Notebook, 1966
Tom Says: So what we are going through is a repeat of 1819 on a much larger scale | 06.03.2009 |
Courtney Says: Wow, interesting to know thanks Kev | 06.03.2009 |
Denson Says: I never thought about this thanks it really is food for thought | 06.03.2009 |
Kenneth Says: Looking at this my thoughts are the way the system works, recessions are inevitable then over some period of time. Meaning they will occur again and again so we just need to get smarter | 06.03.2009 |
Felix Says: Valid point Kenneth it seems to be built into the monetary system | 06.03.2009 |
Amber Says: Makes one's stomach turn to think recessions are built into our monetary system | 06.03.2009 |
Billy Says: Something too familiar about the current recession and that of 1819 looking at the table | 06.03.2009 |
Ralph Says: We should have known then when the oil prices soared that that was the beginning of trouble looking at the crisis of 1973, you're right Kevin history does repeat itself | 06.03.2009 |
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