At first glance, Bernanke appears to be arguing that the bank panics
constituted an enormous shock to aggregate supply.
Gorton (1988) studies bank panics
during the National Banking Era (1865-1914).
Finally, the availability of the discount window was also expected to reduce the risk of bank panics
in two ways.
Another facet of ending bank panics
entailed creating an "elastic currency.
This figure and the others that follow essentially document the unfolding of the bank panic
Compared to bank runs, bank panics
were positively bacchanalian.
When the stock market reopened on March 15, the Dow Jones Industrial Average jumped more than 15 percent, the biggest one-day percentage gain ever, and the bank panic
Indeed, for some time now, bank panics
and liquidity crises have seemed a thing of the past, so much so that most economists, until very recently, have viewed them as a solved problem.
Franklin Roosevelt's warning, "the only thing we have to fear is fear itself," (21) was provoked by bank panics
and the terrors of poverty and disorder during the Great Depression.
Lizardo Sosa, president of BANGUAT and director of the government's monetary board (Junta Monitaria), said the banks needed central bank credit lines to meet depositor demand and prevent a general bank panic
As the panic begins * savings decline * deposits decline * loans decline * investment declines * production declines * jobs decline * income declines * further decline in consumption and savings * some banks start to have trouble * call in loans * confidence in the economy and banks begin to decrease * people pull money out of some banks, even good banks * further decline in savings * smaller banks pull their money out of larger banks * cash flow problems widen for businesses and banks * banks call in more loans or sell stocks * not all loans can be repaid immediately * stock prices decline for no one is buying * further decline in confidence * bank panic
deepens and widens.
He promised me holidays in Bali and Mauritius, then cancelled because he was too busy, even after the bank panic