Can some one explain to me in baby words what the panic of 1819 was?
like it was caused by the united states bank because...how?? like its says stuff about loans and speculators but i don't know what that means!
thanks
http://en.wikipedia.org/wiki/Panic_of_1819
from http://www.google.com/search?q=panic+of+1819+&rls=com.microsoft:en-us:IE-SearchBox&ie=UTF-8&oe=UTF-8&sourceid=ie7&rlz=1I7GGIE_en
Remember that the country was VERY young then and still getting its own money system established -- separate from the British or any other system. You'll need to also become clear on who owned banks, how they were (or weren't) controlled, etc.
"Baby words." Do not talk down to yourself, Spencer.
Of course! I'll explain the Panic of 1819 in simple terms.
The Panic of 1819 was a financial crisis that happened in the United States. It was caused by several factors, one of which was the United States Bank. The United States Bank was a central bank that gave out loans to people and businesses. These loans allowed people to buy things like land, houses, and goods.
Now, there were some people called speculators. These speculators would buy things like land or goods, hoping that their value would increase, and they could sell them at a higher price later. It was kind of like gambling. Speculators would often borrow money from the United States Bank to buy these things.
However, things didn't go as planned. As more and more people started borrowing money from the bank, the bank had to give out a lot of loans. This led to a lot of money being in circulation, which caused an increase in the prices of goods, land, and houses. So, the prices of these things went up.
But then, something unexpected happened. The United States Bank realized that many people were not able to pay back their loans because the prices of the things they bought were not increasing as expected. This caused a lot of financial problems. People started losing money, and many businesses went bankrupt because they couldn't pay back their loans.
As a result, the economy of the United States went into a recession. People lost their jobs, and overall, it was a difficult time for the country.
So, in simple terms, the Panic of 1819 happened because the United States Bank gave out loans to speculators, who couldn't pay them back when the prices of things they bought didn't go up as expected. This caused financial problems and a widespread economic downturn.
I hope that helps! Let me know if you have any more questions.