Financial crisis can be very disheartening but it now looks like the financial crisis has been caused by a certain group of people, leaving another group to suffer because of ignorance. Simple, some of the recession that has occurred is either caused by the government or their lack of preparedness for such event if external forces come into play, some caused by financial institution and their carelessness, and the rest caused by greedy wealthy people and speculators who were just playing with the economy.

Let me start with the recession that occurred in 1796. This recession affected the United States and the Great Britain and it was caused by lack of oversight, Land speculation, and war. This involved Robert Morris and other people who saw the land towards the Mississippi river which was now reclaimed by the US from the Great Britain. American Wealthy wanted to buy the land which is currently Washington DC but they needed money from European Investors but since Europe wasn't going to answer them, they began to issue their bank note backed by the land they owned. Each of them created a bank and they all printed their own money.

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North American Land Company co-founded by Robert Morris was also involved in the land speculation and they even went to the level of printing their own currency. The currency was tax free and backed by their land. A lot of people went into debt and were in jail and there was a rumor that Robert Morris was in jail and this was the trigger for the domino effect fall. His company had issued 10 million Dollars equivalent to 232 million dollars in today's equivalent. People panicked, people lost their jobs, people lost their source of livelihood, and people learned to avoid proto-currency not regulated by the central bank.

Real Estate speculation cannot be forgiven for a lot of financial crisis such as the 1819, the 1837, 1873, and the 2009 Real Estate crisis. The 2009 crisis affected a lot of banks in different countries including in Iceland. In 1929, the great depression was a great financial crisis and worldwide GDP decreased by about -15% within 10 years of the depression and after it. This was because people were taking out loans for civilization and industrialization, farmers were also taking mortgage to increase their lands and machinery.

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While the US was increasing economically it was all done on credit with the banks printing money massively. People started to invest in stocks using margin they borrowed from banks and the banks could not cope after which interest rate was increased which means people will stop spending money and the stock market crash.

Financial crises often result from a complex interplay of government policies, financial institution behaviors, and the actions of wealthy speculators. These crises have profound and far-reaching impacts on ordinary people, leading to job losses, financial ruin, and long-term economic hardship. Understanding these historical crises can help us recognize the warning signs and work towards more stable and equitable financial systems in the future.

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