Time to Panic?
Last night as I was watching TV, the local newscasters did their "tonight at 11" commercial. Normally I ignore those because they usually tell me about murders or hit and runs or something along those depressing lines. This time they got my attention. Why? I heard "Washington Mutual" and "big news" and I knew I had to get on my computer to look up what was taking place. It is now official: we have our first major bank failure. My students have been asking all week about the financial crisis taking place. After explaining to them about sub-prime mortgages and credit default swaps, I always get the "what do you think is going to happen?" That's when I sigh and dread my answer. I am a historian. I've studied the recessions of our country throughout its existence as well as those of other countries. The big ones usually have triggers that cause a meltdown of a country's economics. In 1873 (what I'm teaching my U.S. history st...