Panic of 1857

The Panic of 1857 was a financial crisis caused by a combination of falling grain prices, a slowdown in the economy, and over-expansion of railroads and banks. It began in the United States after a sharp decline in wheat prices hurt farmers and businesses. Bank failures and reduced credit led to widespread stock market declines and economic hardship, especially for those heavily invested or dependent on credit. The crisis highlighted vulnerabilities in the economy of that time, leading to a recession that lasted a couple of years and prompted calls for financial reforms.