History Of World Crises

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History Of World Crises
History Of World Crises

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Crises can be of a different nature - economic, political, but in any case, the crisis has a strong impact on the lives of people affected by it. In the entire history of the existence of the world, there were many of them.

History of world crises
History of world crises


Step 1

Panic of 1907: this is the name of the first crisis of the richest in the critical periods of the 20th century. This crisis began in the United States, but has affected nine other countries in addition to America. The critical situation in 1907 revealed the imperfection and unreliability of the private banking sector. A positive consequence of this was the creation of the US Federal Reserve System - an analogue of the Central Bank. It is noteworthy that the oligarch John Pierpont Morgan Sr. saved the United States of America from a complete collapse of the economy during this crisis. The trust he created controlled practically the entire metallurgical industry of the country. In the minds of his contemporaries, he forever remained great and powerful.

Step 2

It is believed that the crisis began due to the actions of Great Britain in 1906, which doubled the discount rate. As a result of these actions, American capital began to decline from the country. The sharp decline in copper prices and, as a result, the fall in the shares of the largest concern United Kupper sowed even greater panic. The New York Stock Exchange has never experienced such a shock.

Step 3

Residents of the country, who have deposits in banks, rather sought to take their money out of there. However, a limit was set on cash withdrawals and huge crowds of indignant gathered at the bank doors. Banks one after another declared themselves bankrupt, and the banking crisis resulted in the collapse of the entire settlement system. This led to a financial crisis. After the Treasury Department did everything it could to prevent the crisis, the government had to turn to Morgan Sr. for help. It was thanks to him that the financial situation began to stabilize.

Step 4

Black Thursday, dated October 29, 1929, was the first day of the Great Depression. Stocks plunged sharply and business activity was in decline. The amount by which the stock price fell by the end of 1929 reached $ 40 billion. Banks and factories went bankrupt, and millions of people became unemployed. Despite the fact that the crisis ended in 1933, its echoes were felt until the end of the 30s.

Step 5

The 1973 crisis, along with the Great Depression, ranks among the most destructive and largest in the world. It covered the economies of the USA, Japan, Germany, Great Britain, France, Italy. The number of unemployed or temporarily laid off has increased again. Simultaneously with the economic crisis in 1973, there was also an energy crisis.

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