This crisis originated in London and quickly spread to the rest of Europe. In the mid-1760s the British Empire had accumulated an enormous amount of wealth through its colonial possessions and trade. This created an aura of overoptimism and a period of rapid credit expansion by many British banks. The hype came to an abrupt end on June 8, 1772, when Alexander Fordyce—one of the partners of the British banking house Neal, James, Fordyce, and Down—fled to France to escape his debt repayments. The news quickly spread and triggered a banking panic in England, as creditors began to form long lines in front of British banks to demand instant cash withdrawals. The ensuing crisis rapidly spread to Scotland, the Netherlands, other parts of Europe, and the British American colonies. Historians have claimed that the economic repercussions of this crisis were one of the major contributing factors to the Boston Tea Party protests and the American Revolution.
5 of the World’s Most Devastating Financial Crises (2024)
References
- https://www.ofn.org/what-is-a-cdfi/
- https://byjus.com/free-ias-prep/development-finance-institutions/
- https://www.occ.gov/topics/consumers-and-communities/community-affairs/resource-directories/cdfi-and-cd-bank/index-cdfi-and-cd-bank-resource-directory.html
- https://www.britannica.com/story/5-of-the-worlds-most-devastating-financial-crises
- https://www.investopedia.com/articles/07/banking.asp
- https://www.icicibank.com/about-us/history
Top Articles
Ratios for Income Statement
Multiple Bank Accounts at Different Banks: Pros and Cons - NerdWallet
Russell From Survive The Raft
Craigslist Houses For Rent In Riverside
Skip the Game: Concept and Implications - Skip The Games
EURO 2024 Tracker: Georgia stun Portugal as Turkey beat 10-man Czech Republic | Flashscore.com
Motorcyle Dealers near craigslist richmond virginia sale
Overhead Emotes Necromancy
FL, Orlando | Sporting Goods & Outdoor Stores | Bass Pro Shops
Alight Fullerton Resident Portal
Latest Posts
International Debt Statistics (IDS)
What is the main norm used by the World Bank in classifying different countries as rich and poor countries? What are the restrictions of such norms?
Article information
Author: Dong Thiel
Last Updated:
Views: 5303
Rating: 4.9 / 5 (79 voted)
Reviews: 86% of readers found this page helpful
Author information
Name: Dong Thiel
Birthday: 2001-07-14
Address: 2865 Kasha Unions, West Corrinne, AK 05708-1071
Phone: +3512198379449
Job: Design Planner
Hobby: Graffiti, Foreign language learning, Gambling, Metalworking, Rowing, Sculling, Sewing
Introduction: My name is Dong Thiel, I am a brainy, happy, tasty, lively, splendid, talented, cooperative person who loves writing and wants to share my knowledge and understanding with you.