Panic of 1837

The Panic of 1837 was a severe economic depression caused by a combination of factors, including a burst of speculative land bubbles, restrictive lending policies by banks, and a decline in cotton and other exports. Many banks failed, businesses closed, and unemployment soared. Key government policies, like extensive land sales and changes in banking regulations, contributed to the instability. The depression highlighted the fragility of the economy and led to a deep recession that affected the United States for several years.