Everyone knows the economy runs in cycles. No one knows exactly when those cycles begin or end until they do, but one thing is for sure, these cycles will continue. Despite having a basic knowledge of economics, most of us continue to buy high and sell low. And that is probably what turns normal economic adjustments in the economy into panics…….. and panics into recessions.
Although reliable economic data does not exist for periods before the mid 1800’s, it is likely that since 1790 there may have been as many as 40 periods of economic contraction. Lower and middle class individuals and families tend to suffer the greatest economic hardship when the economy turns bad, with the value of housing declining as a direct or indirect consequence of the economic downturn.
The first major American depression is recognized as the panic of 1819. During the rest of the nineteenth century it was follow by the Panics of 1837, 1857, 1873, and 1883.Read More>>
