The first known financial crisis in recorded history had hit Emperor Tiberius’ Rome as a result of poorly managed fiscal policies.
Centuries have passed since then, yet there is, as the proverb tells us, nothing new under the sun. These cautionary financial tales are echoed in our modern history.
In fact, throughout mankind’s history, financial disasters have differed from one another in name only, with only their location or timing to set them apart.
On Wednesday, October 23rd, 1929, the worst economic crisis in early American history broke out.
The stock market, which had been on a steady rise for the last 5 years, suddenly collapsed without warning.
Over ten thousand Americans rushed out into the heart of New York, filling streets from Broadway to the East River. The mob was terrified, panicked at the sudden financial turn of events.
The usual business din of Wall Street was replaced with the shouts and wails of people desperately trying to sell their stocks before things plummeted any further.
It was inconceivable to an America that had grown used to the value inherent in stocks. In an instant, all that accumulated wealth became no more than a handful of worthless papers: the financial catastrophe had essentially wiped out a huge portion of the nation’s wealth in the space of an afternoon.
Thousands of banks went bankrupt. People were driven into poverty and unemployment, losing all they had in the process. The fallout left many without even decent clothes to wear: tattered rags and shoes fashioned from wrapped newspapers were a common sight.
This Great Depression would continue until 1933, and the brink of World War II, but it would hardly be the last financial crisis the world would endure.
These brutal financial disasters all have one clear thing in common:
They are the product of a financial bubble created by the unrealistic expectations of the people within it.
It’s barely a decade beyond 2008, when America struggled with the housing bubble bursting in such a spectacular fashion it sent even well-established financial institutions scrambling for bail-outs. History repeated itself once again, as this event occurred primarily because of misplaced speculation – as it had in the Great Depression, and Rome before it.
Today global debt has exceeded $ 260 trillion. People around the world are rising up in en masse, without a leader to guide them, in demonstrations to protest against hunger and poverty.
Total US Consumer debt, including auto loans, mortgages, credit cards, student loans, and payday loans, has reached into the staggering trillions of dollars.
Every day, we hear news about bankruptcies in the manufacturing sector, farming, and transportation industries.
The stock market has even been steadily rising, bringing with it eerie correlations to the “calm before the storm” that preceded the Great Depression.
There are hundreds of other signs pointing to a great recession that desperately needs official acknowledgement, and they are warning us that the clock is ticking again – loudly.
Despite the overwhelming indicators of an upcoming financial crisis that would be the worst in history, America continues to have an increased confidence in itself..
And just when we thought it was going to last forever..
.. the next economic collapse will be the worst ever..
To learn the truth and be ready for the approaching financial apocalypse, keep watching Financial Argument